Lithium Prices Rise On Soaring Electric Vehicle Demand

Driven by a surge in Chinese electric-vehicles sales, the sharp rise in lithium as a key commodity for batteries could be a factor that slows adoption of these vehicles on the global level.

Lithium carbonate prices in China, the benchmark in the fast-growing market, stand at about $71,000 per tonne, according to price-assessment firm Benchmark Mineral Intelligence. That is almost four times as high as a year ago and just below the record set this March in yuan terms.

Demand for lithium is expected to surpass global supply as consumers switch to battery-powered vehicles. With China currently leading in processing of the vital raw material, the US government is seeking to boost domestic production.