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Battery metals shortages getting to demand destruction levels

Recent price spikes ‘massively change’ economics of energy transition, pointing to trouble ahead
June 8, 2022

High prices for metals are rarely driving forces in market dynamics years down the line: they might trigger investment in new mines, therefore adding to supply in a decade, but the resources industry has largely pulled back from this cyclical approach, burned by past behaviour.

But the current sky-high battery metals prices – lithium and nickel seeing the most significant gains – will impact whether people can get their hands on electric vehicles (EV) at the end of the decade, analysts say, and may even change how cars are designed. 

At the same time, the road is running out for carmakers to get supply chains sorted for late in the decade, given the long lead-time for mines. Shortages of battery metals would likely delay EV production, potentially hitting new car supplies given carmakers are largely slowing development of internal combustion engine (ICE) models. 

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