Lack of lithium power battery prices in 2022

The Nikkei Asia Review reported that the price of electric vehicle batteries looks set to rise in 2022 after a 10-year plunge as the supply of lithium and other raw materials cannot meet the ever-expanding demand.

Despite mining companies scrambling to increase production at existing facilities and develop new sources of supply, the benchmark price of lithium carbonate hit a record at the end of 2021. China, the world's largest battery producer, is priced at 261,500 yuan ($41,060) per ton, more than five times higher than last January.

The most expensive component of each battery is the cathode, and the price of other commodities used for cathode batteries is also rising: the price of cobalt has doubled since january last year to $70,208 per ton, and the price of nickel has risen by 15% to $20,045 per ton.

In recent years, automakers and battery makers have been struggling to develop long-life, high-performance batteries while also trying to reduce costs, and rising battery prices are undermining progress in these technologies and efficiencies. They could also hinder the auto industry's ambitious electrification plans, just as previously reluctant companies like Toyota have also begun to implement eviction production targets.

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