Prices of lithium materials, and producer shares, have declined as the sector moved into a period of oversupply after mines fired up in Australia, Bloomberg New Energy Finance analysts including James Frith wrote in a Thursday note. By 2025, the demand for lithium will be five times higher than 2017 levels, according to Paul Graves, CEO of lithium supplier Livent. With electric vehicle (EV) production expected to dramatically increase in 2023 and 2024, there is a fear that producers of lithium, a key EV battery component, will not be able to keep up with demand. The price of lithium-ion batteries has been falling steadily over recent years, but they are still more expensive than conventional batteries.
By 2025, the demand for lithium will be five times higher than 2017 levels, according to Paul Graves, CEO of lithium supplier Livent. With electric vehicle (EV) production expected to dramatically increase in 2023 and 2024, there is a fear that producers of lithium, a key EV battery component, will not be able to keep up with demand. The price of lithium-ion batteries has been falling steadily over recent years, but they are still more expensive than conventional batteries.