Dec 20, 2021 - Economy

A bad omen for electric vehicles

Data: Benchmark Mineral Intelligence; Chart: Axios Visuals

A key input to the batteries that power electric vehicles and smartphones has more than tripled in price this year, as investment in the EV industry skyrockets.

Why it matters: Lithium carbonate is one material needed to create lithium-ion batteries. Battery packs for EVs can cost several thousand dollars, and keeping their costs down is one part of making EVs more affordable.

  • Traders and corporate buyers are betting on a scarcity of lithium carbonate over the next few years, scooping it up and driving up the price, the WSJ reports.

Go deeper: Battery price decline comes with a warning

Go deeper