2023-11-25 04:43:27
LThe white gold of the Rhine… A highly coveted vein. On both banks of the river, companies bring the extraction of precious lithium to music. Car manufacturers, such as Stellantis and Renault, are listening closely. They are ready to applaud the emergence of a new source of supply of this so-called critical metal. Even if it means opening their purse to afford a folding seat and follow these mining projects as closely as possible.
Everyone draws plans on the electric comet. Lithium, already omnipresent in electronic devices, is at the heart of the manufacturing of electric vehicle batteries. And this, whatever the technology considered. As a result, according to the International Energy Agency, its annual consumption might increase from 126,200 tonnes to 1.3 million tonnes between 2022 and 2050.
All that was needed to electrify the markets. The price of lithium carbonate, sold in China, has taken a nosedive, propelled by the wonderful prospects of electric cars, until it reached 80,000 dollars (around 73,000 euros) per tonne in 2022.
The specter of a possible shortage recedes
This incandescent price has encouraged investors to bet on new deposits, where the white metal is most present today – in Australia, whose subsoils deliver almost half of current production, but also in the ” golden triangle” drawn between Argentina, Chile and Bolivia, and richly endowed with ore. Without forgetting the banks of the Rhine, therefore, and even the Allier, where the Beauvoir mine promises an extraction potential of several million tonnes.
Unsurprisingly, China, an expert in the game of go, has placed its pawns on the global mining chessboard. It thus secures its supply of lithium and controls 60% of its processing on its territory. Strategic investments for a country which has taken pole position in the global race for electric cars.
However, this rush for white gold has made it less rare. The specter of a possible shortage or tension on supplies, likely to send shivers down the markets, is receding. Specialized consultants see in their crystal ball this deadline postponed to 2028. Enough to suddenly reduce the speculative intensity, and therefore the valuation. The price of the white metal has lost nearly 75% of its value since the start of 2023. Voltage drop for lithium. White gold is not alone in suffering this sudden decline. Cobalt or nickel are in the same electric boat and dive just as much. To give them energy once more, battery sales should be accelerated…
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