LLithium carbonate prices have surged in China as demand for electric vehicles ramps up.
The price of lithium carbonate has reached 500,500 yuan, roughly $71,000, according to Trading Economics.
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China is one of the top countries in terms of lithium carbonate production, trailing only Australia and Chile in terms of mine production in 2021.
The surge is largely due to an increase in electric car sales in China and the US as both governments have added financial incentives to purchase one. Lithium is one of the key components of batteries within electric vehicles.
In China, the government has reduced taxes on vehicle purchases and is looking potentially to extend tax exemptions on electric vehicles since the country’s largest city, Shanghai, was phased out of lockdown earlier this summer.
The US added further incentives with the passing of the Inflation Reduction Act, giving consumers a $7,500 tax credit for purchases of new electric and hybrid vehicles.
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Various car companies have announced investments into manufacturing electric cars and materials domestically, potentially affecting the current reliance on foreign materials.
