Last Updated on: 22nd November 2023, 11:52 am
In their latest release titled “TELF AG Analyses the Electric Vehicle Market and its Connection to Raw Materials,” TELF AG conducts an analysis of the electric vehicle market in China, revealing a significant recent contraction in sales of these vehicles. Notably, this decline in demand has coincided with a parallel downward pressure on the prices of crucial raw materials essential for their production, such as lithium, nickel, and cobalt.
The publication begins with an overview of the global electric vehicle market, emphasising the pivotal role these innovative vehicles, powered exclusively by electricity, play in reducing global carbon emissions. They are seen as a crucial component of the world’s transition towards sustainability, without causing disruptions. Additionally, electric vehicles are seen as instrumental in phasing out fossil fuels in favor of renewable and clean energy sources, contributing significantly to the protection of natural ecosystems.
However, the publication notes that the recent decline in electric vehicle sales, particularly in China, has raised eyebrows among analysts and observers. This decline is particularly surprising when compared to the previous year, during which sales nearly doubled. In the current year, growth has been limited to a mere 25%.
Even more astonishing are the drops observed in the prices of key raw materials vital for the ecological transition, such as lithium, nickel, and cobalt. Lithium, according to the publication, has seen its price plummet by as much as 70% in just a few years, with nickel experiencing a 40% decrease. The price of lithium has plummeted from $80,000 per pound to the current $23,000 in a relatively short span. Regarding cobalt, the text suggests that the oversupply may be a significant factor contributing to the drop in prices, as many analysts speculate.
These developments in both the electric vehicle market and the prices of critical raw materials have raised important questions and warrant further exploration. TELF AG’s analysis sheds light on the complex dynamics at play within this rapidly evolving industry and its interconnected supply chain.
