Lithium price going bananas

Lithium carbonate prices in China extended their rally to 497,500 yuan/tonne in the third week of March, marking a gain of over 75% so far in 2022, amid high global demand and projections of scarcity. Sales of electric vehicles powered by lithium batteries are soaring amid the transition to greener energy. According to Adamas Intelligence, a record 25,921 tonnes of lithium carbonate equivalent batteries were deployed to roads during December 2021, a 68% increase on the year and a 31% increase on the month. At the same time, sales of new energy vehicles in China rose by 157% to 3.2 million units in 2021 and are expected to surpass 5 million in 2022. Meanwhile, battery manufacturers race to secure long-term supply contracts due to mineral scarcity. Benchmark Mineral Intelligence estimates a 26,000-tonne shortfall in 2022 and a 300,000 tonne by 2030, as miners cannot keep up with demand.