Sam Jaffe, vice president of battery solutions at E Source Companies, says, “The price of lithium has been so expensive for so long that it is starting to affect the end price of batteries.”
Sam Jaffe, vice president of battery solutions at E Source Companies, warns of material shortages and high prices but nevertheless expects battery demand to grow to 3.4 TWh by 2031, up from a projected 550 GWh in 2022.
98% of batteries in E Source’s forecast are lithium-ion
Concerning lithium pricing, Jaffe reports: “Short term, the market is in crisis. The price of lithium has been so expensive for so long that it is starting to affect the end price of batteries. There have been lithium price squeezes before, but it's never gotten to this point.”
While he predicts cell prices will fall to $110/kWh by the end of 2023, he warns: “Medium term, we see a severe mismatch between lithium extraction capabilities globally and demand for batteries.
In North America, it is projecting BEV/PHEV sales will reach 8.4 million units in 2031 – 45% of new car demand – up from 1.3 million units in 2022.
Craig Rigby, vice president of technology at battery manufacturer Clarios: “The problem is that all roads lead through China. China has done an incredibly good job at building out their infrastructure and supply chain. The majority of materials, whether it’s cathodes or anodes, are processed and provided by China to the rest of the industry.
Ford and GM were both bullish about their EV programs. Ford, says the automaker plans to ramp up North American production capacity to 2 million BEVs in 2026.
Full and article in Wards Auto
