Since 2021, lithium prices have surged 10-fold, only to crash back to earth, wiping out billions of dollars in miners’ shares and forcing supply cuts. The ripple effects of this ride are only just beginning.
The reversal of fortunes for the electric-vehicle battery metal has been nothing short of stunning. Its rapid ascent to a record in late 2022 sparked a rush by mining and refining companies to expand output, while automakers scrambled to lock in supply deals.
A little over a year later, it’s a different landscape. Major producers are issuing profit warnings, and in Australia — the No. 1 source of unprocessed lithium — miners are retrenching. Even Greenbushes, the country’s largest project, announced cutbacks this week.
The turnaround is bad news for the nation’s economy, where the hope was that energy-transition metals would breathe new life into a mining sector dominated by iron ore and coal. It’s already prompted discussions of government support, with one industry group calling for tax credits and royalty reform.
Lower lithium prices are, in theory, good for automakers as well as EV buyers. But in practice, the slump may deter investors as they wait to see whether the market has bottomed.
The truth will always win out in the long run. Wind, solar and battery cars were always impossible, but the polite fiction could be maintained because western society is so culturally weak it will believe it is bad if you tell it so, and thus go along with destructive things for awhile. Fortunately, it is also selfish, and so when it costs too much self interest will overcome guilt. We are on the cusp of that inflection point now, Volvo abandoning electric cars even though they were first and enthusiastic about them is telling. Billions of Euros flushed down the toilet, but no more.
The dangerous thing is that the Chinese were poised to dominate the EV market, but that is vanishing just as they are, and the rest of their economy is a centrally planned mess based on slave labour. The slaves are becoming restless as there is no longer a middle class lifestyle available to sate them, and the CCP knows this. Prepare for war, it is the last act of the desperate, and never has so much desperation been aligned on both sides.
But, but, but … my Vanguard ESG Fund is performing so well ?
https://www.morningstar.com/funds/xnas/veigx/quote
Because you can still count on Leftist governments everywhere buying into Green New Deals with your tax dollars. Remember! In the “New Economy” … businesses don’t need to make … ewwwww … profits.
AND, BMW and another manufacturer have just announced they’re making great headway on hydrogen powered engines. The EV market is in BIG, BIG trouble. The manufacturers are cutting back on their EV production.
Hydrogen fuel cells might take over the battery car market.
Wait until someone discovers that water vapour, the result of burning hydrogen, is the worst green house gas of all!
No longer available on YouTube for obvious reasons. God forbid people learn the real truth about batteries. Sums it all up in a minute.
https://rumble.com/v32tc34-the-true-cost-of-electric-cars-batteries.html
We must stop going along with the Misanthropes Blarney Science. The truth is, the globalists do not want people to have the liberty to travel. By outlawing effective means of transport, they can reduce a free, mobile people to servitude.
Remember (how can we forget; it was only a few months ago) BC’s Premier and the Fed. Gov’t announcing the mountain of money they were throwing at building lithium battery plants in BC?
I was shocked at the mindless stupidity. Doesn’t anyone in Gov’t follow technical news journals?
This pronouncement came right on the heels of Toyota’s revelation of major breakthroughs in solid state battery development. https://spectrum.ieee.org/toyota-solid-state-battery
Even if it doesn’t happen as planned, that prediction should have given the battery plant development here a serious second look. Talk about your white elephant.
Facts do not matter in political machines, the output of which is money; that is why they are funded.
https://www.msn.com/en-ca/autos/news/tesla-settles-lawsuit-alleging-it-mishandled-hazardous-waste/ar-BB1hCAPq
Increased mining in Canada? NOT going to happen, too many frogs and lizards in the way of approvals.
Don’t forget the Blanding’s Turtle.
Pretty good old man rant …
https://youtu.be/GCMIqXx5p9k?si=nYDcIfV55zi2O-E1
It’s too late, you already own the thing
Priceless words
I’ll believe that lithium prices have finally “re-normalized” when I see the retail price of Energizer Lithium AAAs/AAs/9V batteries fall back to something approaching reality. There was a brief period pre-pandemic when you could get bulk packs of those beauties at prices that were similar to the much more reasonable retail prices in the U.S. (after years of them being stupidly high here).
I guess I should’ve enjoyed that brief “bathtub curve” of prices a bit more when it was around.
Those batteries are stupidly expensive in the US too. A couple of years ago the CEO of the company that owns Energizer said that they would be making big adjustments to the price because the market could stand it. Shortly after, the prices increased to absurd levels.
A pack that I paid $25 for a few weeks later was $70.