Carmakers, mining companies and middlemen are in a race for supplies of lithium, copper and nickel. Last week, General Motors (US:GM) pledged $650mn (£530mn) to a junior miner, Lithium Americas (US:LAC), to secure supply from its US prospect, Thacker Pass. This will be a significant mine, but that is a serious investment for supply in four years’ time.
Part of this late rush is due to previous efforts to build mines – such as Rio Tinto (RIO) with Jadar in Serbia – running into roadblocks.
The industry has said for some years that overzealous environmental rules had held back new production, leading to the surge in metals prices, but there is now concern the opposite will happen as government subsidies and stimulus money supercharge the electric vehicle (EV) race.