Recently, a global shift towards the adoption of electric vehicles (EVs) has been in progress. The Biden Administration has recently announced a $900 million investment into electric vehicle charging stations across the nation. The increased funding for EV development and infastructure across the nation is driving the demand for Lithium upward. With demand on the rise for EVs, as well as governments promoting the adoption of EVs across the globe, supplies to produce EVs have gained attention. Lithium is one of the high-demand resources of EVs. Lithium to produce batteries drives about 75% of lithium demand in 2022, with battery demand for electric vehicles and grid energy storage taking the most attention and resources.
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“For the next several years, the inelastic nature of lithium supply simply will not be able to keep up with the projected increases in demand for EVs… though supply dynamics may stabilize around 2025 or 2026, as new capacity has a chance to enter the market.”
Myra P. Saefong in “Lithium Demand From EVs Is Strong. Shortages Will Keep Prices High.“
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Lithium demand increase has contributed to the increase in Lithium prices. In fact, Lithium prices have tripled in a year, and the chemical element faces a long-term supply shortage. As a global shift towards renewable energies continues, demand for electric vehicles may only increase. With this in mind, it is important to consider creative solutions to meet both the needs of demand for renewable energy technologies and the supply of materials to best balance the adoption of sustainable developments.
Read: 3 Reasons Why You Should Pair Energy Storage With EV Chargers
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