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Power Transportation United States

Falling Lithium Prices are Making Electric Cars More Affordable (seattletimes.com) 173

The New York Times reports: Since January, the price of lithium has dropped nearly 20%, according to Benchmark Minerals, while sales of electric vehicles have soared. The price of cobalt, another important battery material, has fallen by more than half. Copper, essential to electric motors and batteries, has slipped by about 18%, at a time when U.S. mines and copper-rich countries such as Peru are struggling to increase production.

The price moves have confounded many analysts who predicted costs would stay high, or climb higher, slowing the transition to cleaner forms of transportation. Instead, the drop in commodity prices has made it easier for carmakers to cut prices for electric vehicles. This month, Tesla lowered the prices of its two most expensive cars, the Model S sedan and Model X sport utility vehicle, by thousands of dollars. That followed cuts in January by Tesla to its more affordable Model 3 and Model Y, and by Ford Motor to its Mustang Mach-E. The average price of an electric vehicle in the United States fell by $1,000 in February compared with January, according to Kelley Blue Book. "For electric vehicles, the major roadblock is cost," said Kang Sun, the CEO of Amprius Technologies, a young battery maker that this month announced plans for a factory in Colorado. The falling price of lithium, he said, "is going to promote EV sales."

Sun said he thinks prices could fall much further because demand for the metal has not risen as fast as some in the industry expected.... Ryan Melsert, CEO of American Battery Technology, attributed the recent decline in lithium prices to temporary factors like a seasonal slowdown in electric vehicle sales in China. "We expect to see very high prices for the foreseeable future," Melsert said. Vivek Chidambaram, the senior managing director for strategy at Accenture, the consulting firm, also expects the decline to be temporary. Lithium prices have fallen because sales of electric vehicles, while still brisk, are not growing as fast as automakers expected, he said. That has led suppliers to produce more than is needed.

The article notes America's Department of Energy is providing $3 billion in grants to create a domestic battery supply chain — partly because the supply of lithium has to increase 42-fold by 2050, according to the State Department's undersecretary for energy.

"We have to find additional sources of supply because 42 times is a lot," he tells the Times. "Right now, we don't have enough."
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Falling Lithium Prices are Making Electric Cars More Affordable

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  • Battery Wars. (Score:3, Informative)

    by geekmux ( 1040042 ) on Sunday March 26, 2023 @11:06PM (#63402203)

    "...America's Department of Energy is providing $3 billion in grants to create a domestic battery supply chain — partly because the supply of lithium has to increase 42-fold by 2050..."

    This statement creates a massive panic in a hype attempt to recover a 20% price drop by artificially creating future supply chain stress by assuming we'll never find another type of material to make a future battery out of.

    This, is how wars get started.

    • "how wars get started"? Poppycock.

    • Re:Battery Wars. (Score:5, Insightful)

      by drinkypoo ( 153816 ) <drink@hyperlogos.org> on Sunday March 26, 2023 @11:57PM (#63402289) Homepage Journal

      We don't even need another material. There are sources of lithium we aren't even tapping yet. What we need is new ways to get lithium, and to stop making NMC batteries so we don't need cobalt or so much nickel. LFP has no Co, and a lot less Ni.

      • Re:Battery Wars. (Score:5, Informative)

        by Rei ( 128717 ) on Monday March 27, 2023 @03:13AM (#63402553) Homepage

        Exactly this. I don't know where this notion that "lithium is rare" comes from, but it's not. Nevada clays alone have enough to transition the entire US fleet over to EVs, and then some. There's enough oceanic lithium to produce ~12 trillion EVs at $5/kg ($80 per pack), and the only reason we don't is that land resources are even cheaper. It's about 50% more common than lead, 40% as common as copper, concentrates nicely in specific locations, yet those locations can be found all over the world, so there's no risk of one country dominating the mining supply. And EVs use tiny amounts of it - it's 1-3% the mass of a battery.

        People consistently make several mistakes:

        Assuming that the price of lithium is due to "mining shortages". It's not. "Mines" (a sizable minority isn't even mined, but rather just sun-dried brine) have no issues with production. The recent shortage was due to refining capacity (which is primarily in China). Refining capacity was underbuilt. Like all industries, you have to forecast demand years in advance, and they underforecast. Which, to be fair, is very difficult to do right when you're dealing with an exponential growth curve.

        Assuming "reserves figures" are all there is. It doesn't work that way. Reserves figures are "proven resources". If you have way more reserves than you need, you stop exploring for more. That doesn't mean there isn't any more, it just means you have no incentive to bother looking for more. With lithium, as a general rule, "looking for more" is has proven very easy. It's found concentrated in salt lakes, salars, salty clays, certain types of igneous rock, geothermal brines, oil well wastewater, etc.

        Using outdated information: If all you think about when you think about lithium production is South American salars, your info is way out of date. Salars have been eclipsed by spodumene, while clays look likely to overtake spodumene at some point in the next decade.

        Lithium is not a limiting mineral for battery production. The closest thing to a "limiting mineral" is nickel (cobalt would be, but it's been increasingly phased out, currently only used in higher-energy-density cells, with the lower end being taken up by LFP - which also does not use nickel). Nickel makes up the vast majority of the cathode mass in NMC/NCA (high energy) cells. As a general rule, batteries can't use ferronickel or even class 1 nickel powder (not economically, at least); they need highly pure nickel sulfate, which is produced from entirely different sources - nickel sulfide deposits, of which there just aren't that many (comparably) in the world vs., say, laterites. While there's been work (most notably, HPAL) to affordably produce battery-grade nickel sulfate from laterites, thusfar it's not taken off. Hopefully Tesla's process for producing cells from class 1 nickel powder and skipping sulfates altogether takes off, but even still, nickel supply will determine the market ratios between LFP and NMC/NCA.

        LFP is of course basically mineral-unlimited, with its cathodes produced from iron (the most common industrial metal) reacted with phosphoric acid (one of the most common industrial acids, compounds from which farmers around the world dump on their fields in insane quantities). Both share graphite anodes, which can be either natural or synthetic graphite - the latter made from any carbon source. Both sides vie over whose graphite has the better performance. My understanding is that at present, natural is cheaper and higher energy density, while synthetic is higher longevity and higher power density.

        Cathode and anode materials together make up the majority of the mass. Nextmost you have the electrolyte, which is mainly organic carbonates (petrochemical product). Think household solvents - their properties are pretty similar to that, though a bit more stable and somewhat less toxic. You also have the alumium cathode foil (literally, it's alumium foil, just high-grade) and the copper anode foil. It's

        • Re:Battery Wars. (Score:5, Interesting)

          by Rei ( 128717 ) on Monday March 27, 2023 @03:33AM (#63402577) Homepage

          I forgot to mention, natural graphite (the minority at present, but growing) is basically very high-grade coal. Anywhere that has anthracite coal deposits, there's pretty good odds that there's some graphite deposits as well. It's a fuzzy line, because you can basically extract and refine the graphite content from pretty much any anthracite, it's just a question of cost, relative to how high the grade is. China has dominated (esp. in refining) due to low costs and a government focus on dominating battery mineral supplies, but African supplies are expected to overtake China this decade, with significant growth in North America and Australia as well. African supplies are mainly spread out over the southeast, a triangle from Tanzania to Namibia to Madagascar.

          Graphite does have some threats to its future in batteries, in that everyone wants to reduce it - not due to cost or supply, but rather, it's just not great at its job. Doesn't hold that much lithium relative to its mass or volume. Everyone wants either high-silicon or lithium metal anodes, and we keep moving in that direction - it's just a question of when we get there. Silicon (already in use at low levels) has the challenge that it absorbs so much lithium that it pulverizes itself, while the challenges with metal have been dendrites and disconnected free metal surrounded by SEI (lost) - but both have increasingly-maturing techniques to counter their drawbacks.

        • Gasoline from fossil fuels is still so prevalent in certain countries that they pay pennies per gallon while many others are screwed with prices several times higher. People often make the mistake that Greed is ever satisfied. Watch as common lithium is still treated like a "rare" commodity, simply because Greed can create that delusion, and often does successfully.

          Hell, a lot of people still think marijuana is "deadly". Including Governments who treat it as worse than fentanyl. And an entire hemp indus

        • They're starting to use some nickel in the carbon anodes in LFP batteries now, so they may contain some nickel, just not very much. https://www.sciencedirect.com/... [sciencedirect.com]

      • LFP has fatal flaw, at least in the north.

        "The charging temperature range for LiFePO4 batteries is 0C to 55C.

        It is not recommended to charge below 0C, theoretically, it is allowed a small current of 0.05C to 0.1C. However, charge under 0C will crystallize the lithium ions, thus reducing the effective capacity. So, if not necessary, do not charge below 0C."

        https://sunonbattery.com/guide... [sunonbattery.com]

        You also lose capacity as the temperature drops, somewhat more so than other batteries.

        https://shop.gwl.eu/blog/LiFeP... [shop.gwl.eu]

        • Re:Battery Wars. (Score:4, Insightful)

          by quantaman ( 517394 ) on Monday March 27, 2023 @09:42AM (#63403240)

          LFP has fatal flaw, at least in the north.

          "The charging temperature range for LiFePO4 batteries is 0C to 55C.

          It is not recommended to charge below 0C, theoretically, it is allowed a small current of 0.05C to 0.1C. However, charge under 0C will crystallize the lithium ions, thus reducing the effective capacity. So, if not necessary, do not charge below 0C."

          https://sunonbattery.com/guide... [sunonbattery.com]

          You also lose capacity as the temperature drops, somewhat more so than other batteries.

          https://shop.gwl.eu/blog/LiFeP... [shop.gwl.eu]

          My understanding is that the first thing the EV batteries do when charging (or driving) is heat themselves to a more appropriate temperature.

          There's certainly an efficiency loss, but it's not a "fatal flaw".

          • by Rei ( 128717 )

            Your understanding is correct. EV batteries are thermally managed. These aren't just oversized cell phones.

    • by orzetto ( 545509 )

      [...] assuming we'll never find another type of material to make a future battery out of.

      That's because there isn't. Lithium is irreplaceable for high-density battery storage because it has an extreme electrode potential and extremely low weight. I mean literally extreme since there is no material with higher (well, lower since it has a minus sign) electrode potential [wikipedia.org] for a plain ionisation, and there is no lighter solid material.

      You can play with all the other metals and components in batteries like nickel

      • Comment removed based on user account deletion
        • by Rei ( 128717 )

          I don't get why people assume that producers of grid storage products don't know what they're doing.

          Li-ion is being used because it's literally the cheapest for the role. That might (I daresay, almost certainly will) change some day, but that day is not today. ZEBRA for example is an inefficient use of nickel, and doesn't have production volumes backing it up anyway.

          And I see no reason to see "lithium becoming more expensive in the long term". It's just too damned abundant, and we keep getting cheaper a

    • The price of Lithium is currently low, and it will continue to be low. Until it goes up. There is no (legitimate) reason for the price to be unusually low or high. This is just the same old manipulation bullshit.
  • by rsilvergun ( 571051 ) on Monday March 27, 2023 @12:10AM (#63402315)
    I read something like 80% of new vehicle sales are SUVs or trucks. The trucks don't lose value because people need them for work and the SUVs have higher maintenance costs and higher base costs.

    I don't see how the current car market is at all sustainable. We're rapidly pricing a substantial number of workers out of car ownership. That would be fine if cars were a luxury but besides a handful of people living in San Francisco and New York and maybe one or two other major cities you either have a car or you don't have a job. You can't be reliable enough to function without one.

    And while electric cars need less maintenance in a lot of ways you still have to deal with those battery packs and the need to replace them at some point.
    • Yep, you want to see something funny? Go on ford.com (switch to the US site if you somehow get region-hijacked if coming from some other place) and then "Cars" and see how many there are. Spoiler: only the Mustang, well two of them: 2022 and 2023. You can't make this shit up.

      • Well, yes, but there are quite a few "crossovers" which is just a fancy marketing word for a tall hatchback car. Those are very popular in the US and are the same market segment as cars. That's the reason there aren't "cars" because "car" buyers prefer their cars to be called "crossovers." You can have a brand new car for 22k. However, I doubt they are selling very many of these which is why there aren't very many affordable used cars.
    • It all leads to either self driving cars as a service, or, remind me again how soon after falling to fascism did Germany start building a "People's Car"? It could go either way.

      I'd be all thrilled about the prospect of an affordable brand new carbon-neutral socialism-mobile, except for the fact that people like me will probably be in concentration camps by that point. I wish history repeating itself could be more like Hollywood reboots, where they take out aspects of the original which aged poorly.

      • Cars made today last *much* longer so it makes sense that they cost more initially and that used sell for a higher percentage of new value. Right now the market is insane. You have used cars selling for more than the new version for popular models. (Hence why I'm not in the car market). But the newest vehicle in our family is a 2014 model year and I'm happy to continue to drive it for another five to ten years. Longer if necessary. At some point there will clearly be market shifts. One thing for sure
    • by Nkwe ( 604125 )

      And while electric cars need less maintenance in a lot of ways you still have to deal with those battery packs and the need to replace them at some point.

      Just like for ICE cars you will need to replace the engine and or the transmission at some point. Granted that electric cars haven't been on the road long enough to have good statistics on battery lifetime, but they are engineered to last in the multiple hundreds of thousands of miles, so I wouldn't expect the battery lifespan to be significantly different than an ICE engine or transmission.

      • by Rei ( 128717 ) on Monday March 27, 2023 @04:04AM (#63402617) Homepage

        And EVs have been around for long enough to see what the replacement process looks like in the real world, too - by the time there was enough demand to actually offer them, the Tesla Roadster's battery got a replacement pack for ~70% of the original price (not accounting for inflation) that offered 40% more range. Of course, it was always going to be expensive, as the Roadster's battery had to be handbuilt.

        That said, most people would not replace a dead battery pack (which for a typical EV would be ~15 years or so after the purchase... they're typically warrantied for 8 years) with a new pack, just like people generally don't replace the engine on ~15yo cars with a new engine; they'll generally get one salvage, such as from a car that was in an accident that didn't damage the pack and was a writeoff (same as with ICE engines). So if someone's pack died at 300-500k km, they might buy a salvage pack with 100-150k km on it at 1/2 to 1/3 the cost of a new pack.

        If we apply these trends to a vehicle built today with, say, a $7,5k pack on a 340mi / 550km vehicle, then in the future you would likely have a choice of:

        * New: $5,4k inflation-unadjusted / $3k inflation-adjusted. ~475mi / ~765km range.
        * Salvage: $2,1k inflation-unadjusted / $1,2k inflation-adjusted. ~320mi / ~515km range.

        Of course, one needs to also add in labour. Replacing a battery pack is a lot easier than replacing an engine, but it's still a cost (one that today is made more expensive by the relatively small number of mechanics with experience in doing so, but that obviously won't be the case 15 years in the future).

      • by orzetto ( 545509 )

        Just like for ICE cars you will need to replace the engine and or the transmission at some point.

        I find that unlikely, since EVs have neither of those things. EVs have electric motors (far cheaper and more reliable than high-temperature ICEs with thousands of moving parts) and there is neither gearing nor transmission required (the motor is installed directly on the shaft).

        I live in Norway, where EVs were phased in much earlier, and EVs are well-known to be cheaper to maintain and way more reliable than ICE

        • by jeadly ( 602916 )
          He was comparing an EV battery replacement with an ICE engine or transmission replacement. People don't avoid buying gas cars because of the looming replacement cost of an engine 10-15 years later.
      • Only motorheads replace engines for that extra 5% gain. People who do not have GM automatic transmissions do not replace those either, though they may need a rebuild eventually.

        Manual transmissions last for decades until the bearings give out. The clutch is the wear part and good for 150,000 miles, at least mine were.

        I miss my five-speed, but I do admit they have finally fixed the mad hunting between gears on a steep hill.

      • EVs do not have a transmission.
        And an electric engine: lasts for ever.

        At least on a human time scale. We have the first water powered electric generators still running in Germany. After ... how many hundred years, close to 200?

        What exactly do you think could break in an electric car engine? (* facepalm *)

        • by Nkwe ( 604125 )

          EVs do not have a transmission. And an electric engine: lasts for ever.

          [...]

          What exactly do you think could break in an electric car engine? (* facepalm *)

          That was actually my point, although a couple folks didn't get it so maybe I didn't state it well. There is much FUD put out by those opposed to electric cars, of which the common (fake) worry is about the need to replace the battery. My point was that the battery in electric cars will need to be replaced on about the same schedule as you would need to replace the engine or transmission on a gas car. When buying a gas (ICE) car, worry about needing to replace the engine or the transmission is not a factor f

  • by Maxo-Texas ( 864189 ) on Monday March 27, 2023 @12:44AM (#63402375)

    For the $11,000 battery, only about $400 is lithium.
    There is a *lot* of nickle, copper, and graphite.

  • Sodium ion batteries are just starting to be produced and I bet in a few years they'll be extremely common in vehicles. Lithium isn't a rare earth but it is still in short supply and the price reflects that. Sodium is everywhere and therefore batteries made from it will be cheap. The downside is energy density is lower, but I could see them being used in standard range vehicles the way lithium iron phosphate is today, and more energy dense lithium manganese batteries for extended range cars.

    • by Rei ( 128717 )

      Lithium is dirt-cheap at the mine, and only small amounts are used. This price spike was due to a refining shortage. And "being produced" is meaningless. I remember when solid-state batteries started "being produced". Titanate batteries that can charge in just a couple minutes have been "being produced" for decades. "Being produced" means nothing. You have to actually have competitive stats and pricing, or you never scale.

      Chemically, sodium is just an annoying substitute for lithium. Not from its mas

  • We all know the planet - which is basically made from Lithium - has not enough lithium to make "many" car batteries. Lithium should be worth more than gold right now! I blame: blockchain!

    • Also, remember lithium has been greenie-approved recently, and as we all know the moment greenies approve of something, its mining immediately stops producing toxic waste, and starts producing rainbows, fairies, and unicorn farts.
  • Makes sense. Companies have been investing for a few years now in ramping up production. And at the same time battery companies have been investing in refining their designs to reduce the need for rare minerals. For example, LFP batteries, which Tesla uses for all their "standard range" vehicles, for example, contains no Cobolt. Which means that while the number of EVs being produced is up, so is the supply of the required materials, and the quantity required per vehicle is dropping. So it's not shocking th

  • Cobalt may be down relative to what it was a few months ago but it's still much higher than it was two years ago. So is lithium. The cost of electricity is also about 50% higher than what it was two years ago. IMHO, the mainstream media loves to pretend that factual history doesn't exist and therefore everybody should just listen to what they're saying today. Sadly, most people just buy it without doing any research. Ultimately, the time to buy an EV is not now.

  • Typically, a one-quarter drop in raw resources used in manufacturing doesn't translate into lower prices for consumers unless the distance between resource and consumer is small. For example, a 50% reduction in the cost of steel won't result in a noticeable drop in the price of air conditioner units for some time whereas a significant drop in the price oil will result in a cheaper gallon of gas within a few weeks or months.

    Yes, if lithium is cheaper, then battery manufacturing is cheaper. But battery manufa

  • I am too lazy to look for the data, but frequently this type of drop occurs after there was a speculative run-up in prices, and the speculation turned out wrong, e.g. Ukraine war did not kill lithium supply, or demand did not go up astronomically.

  • Someone must have figured out the cobalt refiner trick [fandom.com] and then figured out how to apply it to lithium as well.

  • 1) A typical basic EV contains only 9 kg of lithium.

    2) A typical basic old car battery contains 10kg of lead.

    3) Lithium is much more abundant in the Earth's crust than lead is (20 ppm vs 14 ppm)
    https://en.wikipedia.org/wiki/... [wikipedia.org]

    Unless you can show me that lithium much-more-rarely is concentrated anywhere, has fewer ores that are as cheap to mine as lead ores are, then I have to conclude that the lithium shortage is all about production, and the free market will direct enough money to it to find more lithium

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