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Non-Tech : Kirk's Market Thoughts -- Ignore unavailable to you. Want to Upgrade?

To: robert b furman who wrote (11908)	9/3/2021 12:26:13 PM
From: Kirk ©	Respond to of 27007

Here they want to force us to convert homes heated by NG to electricity. They hope we'll also put solar on the roof to store in batteries... I wonder where they think they will get the batteries? International Energy Agency (IEA) indicated that the current supply level, including ongoing production and planned capacity raises, can only meet 50% of the demand in 2030. Lithium price soars as demand outgrows supply digitimes.com Staff reporter; Yusin Hu, DIGITIMES Friday 3 September 20210 Credit: Unsplash In light of the rising demand for electric vehicles (EV), car chips, and lithium batteries, Chinese lithium mining companies, and battery suppliers are ramping up investment and expanding production capacity. As shipments of new energy vehicles increase, prices of raw materials for lithium batteries are also on the rise. Demand for electric batteries has outgrown supply, as China sees production and sales of new energy cars hit new highs this July, rising to 284,000 cars and 271,000 cars respectively, and the US and Europe adopt new ways to encourage EV uses and reduce carbon emissions. According to industry sources, the market is bracing for surging costs of lithium while expecting demand for lithium salts to rise at a faster pace into the fourth quarter because the fourth quarter is usually the peak season for sales of consumer electronics and electric vehicles. Citing data from Baiinfo, CITIC Construction said the price of industry-grade lithium carbonate has risen 8.6% to RMB101,000 (US$15,636) per ton this week, while battery-grade lithium carbonate rose 8.3% to RMB104,000 per ton. Prices of different types of lithium hydroxide have seen 5-7% increases in this week. The average price of spodumene concentrate has reached US$865 per ton, 116% higher than at the beginning of 2021. Lithium concentrate is expected to break US$1,200 per ton during the second half of 2021. International Energy Agency (IEA) indicated that the current supply level, including ongoing production and planned capacity raises, can only meet 50% of the demand in 2030. Although China has the highest capacity to manufacture lithium batteries, they have to import the most essential raw materials. China's dependence on imported lithium battery materials reached 74% in 2020. In order to stabilize the manufacturing of battery cells and the sales of EVs, Chinese suppliers are searching for more sources of materials from overseas to lower the costs. China's largest lithium battery material supplier Tianqi Lithium has allegedly invested in Australia-based Talison Lithium. Contemporary Amperex Technology (CATL) has invested in the lithium extraction project in South America. Guoxuan High-Tech reached an agreement with Vietnam-based VinFast to develop an LFP lithium battery for pure EVs as manufacturing LFP batteries does not require high-cost materials such as cobalt and LFP battery's power density and battery life are improving. Tesla has indicated that it will adopt more LFP batteries in its products to some extent. VinFast's parent company Vingroup is considering building battery factories in Vietnam and using locally-made batteries in its EVs. Eve Energy, which has been looking for sources of supply since the beginning of 2021, has acquired 28% shares in Jinkulun Lithium Industry's shares and 5% shares in Dahua Chemicals. Dahua is licensed to mine at the Daichaidan Lake in Qinghai. Eve Energy has also partnered up with a number of companies to start various projects in different countries, including a refinery project in Indonesia, in a bid to stabilize material supply for its battery business. After signing a 10-year partnership agreement with GEM Co., Eve Energy will receive over 10,000 tons of recycled nickel products every year from GEM, starting in 2024, in exchange for nickel battery waste.