Lithium has a better claim than most commodities to be the “new oil.” It even comes with the latest geopolitical baggage.
Prices for the lithium-based chemicals that go into rechargeable batteries have soared this year as electric-vehicle sales have revved up, particularly in China. The average price for lithium carbonate, one of the two key compounds used by battery manufacturers, reached $14,386 a metric ton in August, according to Benchmark Minerals, up from $6,124 in December.
The jump follows a slump. Carbonate prices peaked above $17,000 in early 2018 before falling in a classic commodity boom-bust cycle. A wave of early investment flooded the market before electric vehicles really took off. Then came the pandemic, delaying the recovery.