With Lithium Prices Up Ninefold, Report Underscores US Dependence On Foreign Minerals

A recent white paper has laid out some of the challenges in supplying minerals for any energy transition from fossil fuels, offering a timely warning for policymakers as the increased demand for electric vehicles (EVs) drives up the costs of materials used in such products.

Notably, the benchmark prices of lithium, lithium carbonate, and lithium hydroxide have rapidly increased in recent months, as detailed at Benchmark Minerals.

Hovering at just $115.80 per ton in September 2020, the benchmark price of lithium has surged to $1045.90 a ton in March 2022. That’s more than a ninefold increase.

Zach Schumacher, a North American metals price expert with Argus Media, told The Epoch Times that the costs of EVs will likely increase as a result. The estimated average transaction price for a new electric vehicle was $56,437 in November 2021, according to Kelley Blue Book.

The prices of other key minerals—including the rare-earth metal neodymium that goes into wind turbines—have also trended sharply upward in recent months and years.

“Lithium is not the only raw material directly correlated to the EV market witnessing higher costs, so parsing out precisely how much of the increased costs for vehicles in the coming months originates from lithium alone could prove fairly difficult. Nickel, stainless steel, semiconductor and labor costs are among other costs that have all also risen compared to levels from recent years,” said Schumacher, who added that the prices of consumer electronics could also rise.- READ MORE