Lithium is a crucial metal for the energy transition, but Europe and the US rely heavily on imports from countries like China. To reduce this dependence, the EU and the US have introduced incentives to encourage domestic production, but there is resistance to developing new mines. However, there are signs of a shift, with the US recently approving a new lithium mine and the EU signing a strategic partnership agreement with Serbia for raw materials. The opening of a lithium mine in Serbia could mitigate a big part of Europe’s lithium problem, as it has the potential to provide sufficient lithium for one million cars each year for 45 years. Other potential sources of lithium in Europe include Portugal, Finland, Spain, and the Czech-German border. The recent spike in the price of battery-grade lithium has incentivized new projects, but the subsequent increase in supply has caused prices to fall back to previous levels. This, coupled with disappointing sales of electric vehicles in Europe and North America, has dampened investors’ expectations of demand growth for lithium. China’s integration of lithium processing, battery manufacturing, and EV production gives it an advantage in absorbing higher costs at early stages of the supply chain. The development of new lithium mines in Europe and the US could help reduce dependence on imports and support the growth of the electric vehicle market.
Lun. Dic 23rd, 2024
