Lithium in the electric vehicle controversy

Asian markets specialist Süleyman Mete Özbalaban said that the issue of lithium supply will be insufficient and electric vehicles will not be able to meet the needs for now is a claim, saying: “I’m not saying it’s impossible, but it’s a low probability. “.

News that lithium manufacturers have warned that the global supply of lithium will not meet demand for electric vehicles has raised concerns about lithium supply.

Mining permit delays, staff shortages and projections that inflation could hamper lithium manufacturers’ ability to supply electric vehicle makers with enough battery metal have also added to these concerns.

IF THE PLANNED INVESTMENTS ARE MADE…

Noting that such claims have come to the fore for many strategic commodities such as oil and wheat, Özbalaban said: “Generally speaking, the bottom line for the electric vehicle battery is the amount of investment that needs to be made. If EV manufacturers and governments make the planned investments until 2030, there won’t be a big problem in battery supply,” he said.

Özbalaban stated that the problem in the electric vehicle industry is that most of the metals (lithium, cobalt and nickel) needed for the battery and the motor, that is, 80 percent, are found in China.

Stating that this situation brings both the advantage of raw material control to China and the production of cheap batteries compared to other countries, Özbalaban stressed that China is now far ahead in battery production and produces batteries for Japanese, American companies and the European Union (EU). .

Özbalaban said: “Therefore, there may be a problem if China decides not to supply batteries to foreign manufacturers. For this to happen, there must be very serious problems. “China does not want a trade war with the US, the EU and Japan,” he said.

‘DISCREASING ADDICTION TO CHINA’

Stating that the US followed two strategies to solve the EV battery problem and to take away this trump card from China, Özbalaban said:

“First, it develops cooperation with the countries of Southeast Asia and Africa, especially Indonesia, the Philippines, Australia and the Democratic Republic of the Congo, in order to increase the supply of metals needed for electric vehicles. It supports the development of lithium, cobalt and nickel mines in the mentioned countries.

Therefore, the dependence on China for these metals will gradually decrease. Another strategy, led by Japan and the US, is to develop alternative batteries to lithium-ion batteries, such as the sodium-ion battery. If we look at the history of technology, we see that in such cases a substitute product is developed. For example, cotton-polyester, natural rubber-artificial rubber”.

Özbalaban predicted that as a result, these two strategies will be successful and there will be no lithium battery supply problems. (AA)