The Price of lithium battery expected rising in 2022

The Nikkei Asian Review reported that as the supply of lithium and other raw materials cannot meet the ever-expanding demand, the price of electric vehicle batteries seems to rise in 2022 after a 10-year sharp decline.

Although mining companies are vying to increase the output of existing facilities and develop new sources of supply, the benchmark price of lithium carbonate hit a record at the end of 2021. As the world's largest battery producer, China, the price of batteries is 261,500 yuan (approximately US$41,060) per ton, more than five times higher than in January last year.

The most expensive component in each battery is the cathode, and the prices of other commodities used in cathode batteries are also rising: the price of cobalt has doubled since January last year to US$70,208 per ton, and the price of nickel has increased by 15%. US$200,45 per ton.

In recent years, automakers and battery manufacturers have been working hard to develop long-life, high-performance batteries, while also working hard to reduce costs, and rising battery prices are weakening the progress made in these technologies and efficiency. They may also hinder ambitious electrification plans in the auto industry, just as companies that were previously reluctant, such as Toyota, have begun to implement electric vehicle production goals.