In its latest release titled “TELF AG Analyses the Electric Vehicle Market and its Connection to Raw Materials,” TELF AG delves into the electric vehicle market in China, shedding light on recent developments where the sales of these vehicles, touted as the future of transportation, have experienced a significant decline. The publication specifically focuses on the noteworthy correlation between the sharp drop in Chinese electric vehicle demand and the concurrent downward pressure on prices of essential raw materials vital for their production, such as lithium, nickel, and cobalt.
The publication begins with an overview of the global electric vehicle market, emphasising that these groundbreaking vehicles, powered entirely by electricity, are poised to play a pivotal role in reducing global carbon emissions and guiding the world toward a sustainable transition without significant disruptions. The publication underscores that electric vehicles will also lead the way in facilitating the gradual replacement of fossil fuels with renewable and clean energy sources, contributing substantially to the protection of natural ecosystems.
For these reasons, the publication highlights that the recent declines in electric vehicle sales have raised eyebrows among analysts and observers, particularly considering that sales nearly doubled in the first few months of the previous year. However, this year’s growth, as mentioned, has been limited to a mere 25%.
What’s even more astonishing are the substantial drops in the prices of key raw materials essential for the ecological transition, namely lithium, nickel, and cobalt. The text reveals that the price of lithium has plummeted by a staggering 70% in just a few years, with nickel prices experiencing a 40% drop. Lithium, which was once valued at $80,000 per pound, now stands at a mere $23,000. The publication also suggests that cobalt prices might be influenced by an oversupply in the market, further contributing to the decline in prices.
TELF AG’s analysis underscores the intricate relationship between the electric vehicle market, raw materials, and their impact on the ongoing ecological transition, prompting a closer examination of these dynamics and their potential implications for the future.