Braulio Lopez of Galaxy Resources lithium mining division carts halite concentrate at the Salar del Hombre Muerto, or Dead Man’s Salt Flat, an important source of lithium at around 4,000 meters (13,123 feet) above sea level on the border of the northern Argentine provinces of Catamarca and Salta, October 28, 2012. REUTERS/Enrique Marcarian/File Photo/File Photo
By Ernest Scheyder, Reuters
(Reuters) – Rising demand for lithium is stoking prices for the electric vehicle battery metal, fueling long-delayed expansions that still may not produce adequate supplies that automakers need to meet aggressive production plans.
Growing industry optimism from higher lithium prices is a change from last year when funding for mines and processing plants dried up during the pandemic.
Albemarle Corp, Livent Corp and other producers are scrambling to make more lithium, but some analysts worry the recent price jump will not spur a big enough expansion to meet a planned wave of new EV models by mid-decade.
Since January, General Motors Co, Ford Motor Co LG Energy Solution and SK Innovation Co, along with other automakers and battery parts manufacturers, have said they will spend billions of dollars on EV plants.
U.S. President Joe Biden has proposed spending $174 billion to boost EV sales and infrastructure. The European Union has similar plans, part of a rush to catch up with global EV leader China.
Those moves have helped an index of lithium prices jump 59 percent since April 2020, according to data from Benchmark Mineral Intelligence, a commodity pricing provider.
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