The last year has been a great year for anyone investing in Lithium, seeing the commodities prices explode over 300% to record highs with no signs of coming down any time soon, so what does this mean for the everyday consumer?
Lithium is no stranger to the news cycle, being an integral ingredient in rechargeable batteries that can be found in almost every new portable electronic device from phones to drones. The huge boost in prices were the result of a number of world-wide factors such as ongoing supply chain issues from COVID-19 (particularly strict lockdowns in China), the war in Ukraine, etc, though the insatiable demand for consumer electronics hasn’t waned, coupled with the rapidly growing EV industry, thus only adding to the uncertainty for the future of the automotive industry.
Naturally, the mining industry is slow to react when such a rapid change in the price occurs, in part thanks to the enormous amount of planning and construction that must go into every new mine site, though industry experts continue to believe the price per kWh for Lithium batteries will keep declining as the biggest exporters of Lithium such as Chile and Australia continue to populate the land with new mining projects.
It may take some time to measure the true impacts of the immense price hike, but there is some hope that the dust will settle, and the market will find a new equilibrium sooner rather than later. In the meantime, however, don’t expect the next best mobile phone to get any cheaper, nor for the notoriously long EV waitlists to get shorter anytime soon.