• 4 minutes Energy Armageddon
  • 6 minutes How Far Have We Really Gotten With Alternative Energy
  • 10 minutes Russia Says Europe Will Struggle To Replace Its Oil Products
  • 7 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 54 mins Reality catching up with EV forecasts
  • 8 days "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 2 days 87,000 new IRS agents, higher taxes, and a massive green energy slush fund... "Here Are The Winners And Losers In The 'Inflation Reduction Act'"-ZeroHedge
  • 7 days A Somewhat Realistic View of the Near Future for Electric Vehicles Worldwide
  • 13 days The Federal Reserve and Money...Aspects which are not widely known
A Long-Term Play On Diversity In Renewable Energy

A Long-Term Play On Diversity In Renewable Energy

The trick for long-term investors…

Everybody Loves Oil Again

Everybody Loves Oil Again

The reopening of the Chinese…

Lithium Price Surge Jeopardizes Energy Transition Efforts

Soaring lithium prices are threatening energy transition efforts as EV battery makers will be forced to hike the prices for their products by as much as 25 percent, Morgan Stanley has warned.

Over the past 12 months, the bank said, as quoted by Bloomberg, the price of lithium carbonate, which is a key ingredient in electric vehicle batteries, has jumped five times. This may force EV manufacturers to hike prices by up to 15 percent, hurting demand.

The news comes at a bad time for EVs. Rising retail fuel prices in some parts of the world, such as the United States, are driving higher EV demand, but carmakers are already finding it hard to satisfy it amid persistent supply chain problems and the rising prices of most raw materials.

ADVERTISEMENT

The conclusions of Morgan Stanley analysts echo those of a Chinese EV manufacturer. Earlier this week, Li Auto Inc’s chief executive Li Xiang said on social media that “The cost of batteries in the second quarter rose by a very ridiculous amount.”

Because of the rising costs of raw materials, the world’s largest EV manufacturer CATL has already said it would be raising the prices for some of its products. Tesla, meanwhile, raised the prices for its cars for the U.S. and Chinese markets twice in a single week.

ADVERTISEMENT

“Historically, the battery price cost curve had been declining at a pace of 3% to 7% annually for so many years in a row it almost seemed inevitable,” Morgan Stanley analysts said in their note this week. “But molecules don’t play by the same rules as Moore’s Law. The world has changed, and along with it is a new paradigm of input costs.” 

The electrification of transport is one of the pillars on which energy transition plans stand, along with a buildup in renewable energy generation capacity and hydrogen.

By Charles Kennedy for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

ADVERTISEMENT


ADVERTISEMENT


Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News