Possibly interesting for all those who invest in rare earths / metals in relation to car batteries. But also not uninteresting information for investors in e-cars.
Sales of electric cars are weakening, and this is having an impact on the prices of the three most important battery metals: lithium, nickel and cobalt. Battery manufacturers had stocked up on raw materials in anticipation of a rapid e-car market, driving up prices.
The weak demand for e-cars has now led to a reduction in production and the high inventories are also being reduced as a priority. For example, VW has put the construction of a new gigafactory in the Czech Republic on hold for the time being. Ergo: prices are falling.
The situation could even drag on for several years. An oversupply of all three battery metals is expected for the years 2024 to 2026. The nickel and lithium markets would not show a deficit until 2027 and 2028 respectively. Demand for cobalt, on the other hand, could exceed supply again as early as 2026.
According to raw material producers, things are getting tight, with the world's largest lithium producer Albemarle saying that it is operating at the lower end of profitability at the current price level. It is therefore unlikely that mining companies will invest in new mines and refineries in the coming years.
Source: Benchmark Mineral Intelligence | Benchmark Mineral Intelligence (benchmarkminerals.com)