In the field of commodities, the news from Elon Musk that Tesla could start mining lithium has made a lot of noise. According to Ben Laidler, eToro’s global markets strategist, a sign of how much inflation worries producers and how there may be a slowdown in the supply chain.
Tesla founder Elon Musk has again signaled that the world‘s largest electric vehicle (EV) manufacturer may need to directly mine the battery’s crucial material, lithium, to secure its supply chain and manage. the increase in costs – said the expert – This is easier said than done, but reflects the concern that the uncontrolled increase in battery prices will slow the transition to electric vehicles “.
“Lithium prices have risen by more than 450% in the past twelve months, as increased demand for EV batteries outstripped supply from major manufacturers in Australia and Chile – Laidler pointed out – EV batteries account for 70%. in demand for lithium, and the average price of the battery is now about $ 9,000, or more than 20% of the cost of the vehicle. “
“Global sales of electric vehicles have doubled in the past year, led by China and Europe, and this trend is expected to accelerate with tightening government emissions regulations, the introduction of new models and improved infrastructure. recharging – concluded the manager – The risk is that the surge in lithium and battery prices will begin to block this growth, especially in the United States, where adoption is lagging behind “.