Electric vehicle manufacturers, already battling supply chain challenges and a semiconductor shortage, face another potential roadblock in 2022 as prices for battery-grade lithium are poised to “skyrocket”, according to a report by Rystad Energy.
The metal, which is widely used in several industries including electronic devices such as mobile phones, is currently trading at a record high of $35 per kilogram in Asia. However, the price is expected to jump 43 per cent to $50 in the second half of 2022 and 50 per cent to reach about $52.5 by January 2023, the Norway-based intelligence company said on Friday.
Interest in lithium iron phosphate batteries has accelerated among electric vehicle manufacturers since early 2021. However, producers, particularly in China, appear reluctant to sell significant volumes on the spot market as supply constraints and the continuing logistical issues caused by the pandemic create bottlenecks in the trading market for lithium salts, Rystad Energy said.
Lithium is also viewed as a key element to help the transition to a lower-carbon future. Global demand for the densest metal is set to surge to $60 billion by 2025, from $8bn in 2018, according to the UN Conference Trade and Development.
“A fresh new driver for China’s lithium market are lithium contract prices on the Changzhou Zhonglianjin exchange platform. Launched some six months ago, the futures contracts have driven sentiment in the market to some extent, especially over the past two months,” Susan Zou, senior analyst for battery materials at Rystad Energy, said in the report.
“This has contributed significantly to the current momentum in lithium prices in China and made trader-suppliers who have attempted to destock in January hold back from selling for now.”
Battery pack prices fell 89 per cent in real terms to $132 per kWh in 2021, from $1,200 per kWh in 2010, and 6 per cent down from $140 per kWh in 2020, according to a Bloomberg New Energy Finance report in November.
“Continuing cost reductions bode well for the future of electric vehicles,” the report said.
However, the impact of rising commodity prices and increased costs for key materials such as electrolytes has put pressure on the industry in the second half of 2021, and higher raw material prices would mean average pack prices could rise to $135 per kWh in 2022 in nominal terms, the Rystad Energy report said.
Elon Musk's Tesla, the world's largest EV maker, said in October it was changing the battery chemistry on all of its standard-range cars to a lithium-iron-phosphate cathode to replace the nickel-cobalt-aluminium-oxide composition it used in its Model 3 sedans. The move was expected to increase the company's profit margins.
Germany's Volkswagen, Europe's biggest car maker, plans to build six large battery cell plants in Europe by the end of the decade in an effort to overtake Tesla in the increasingly competitive EV market.
[China's] futures contracts have driven sentiment in the market to some extent, especially over the past two months
Susan Zou,
senior analyst for battery materials at Rystad Energy
However, building the facilities and securing vital raw materials – lithium included – will cost as much as €30bn ($34bn), Thomas Schmall, Volkswagen's board member and technology chief, said last month.
German carmaker Mercedes-Benz and its parent company Daimler have already pledged to go fully electric by the end of the decade, investing €40bn ($45bn) by 2030 to take on Tesla and build eight battery plants.
The supply of lithium salts is expected to remain tight through the first half of 2022 due to lagging production in China and South America, Rystad Energy said. Suppliers in South America are also hesitant to allocate volumes outside long-term contracts despite their planned ramp-up in 2022 because of the logistical challenges.
Changzhou’s lithium contract price for February 2022 hit an intraday high of 418,500 yuan ($65,800) per tonne on January 10, up 14.34 per cent from 366,000 yuan on December 31.
Essentials
The flights
Emirates and Etihad fly direct from the UAE to Geneva from Dh2,845 return, including taxes. The flight takes 6 hours.
The package
Clinique La Prairie offers a variety of programmes. A six-night Master Detox costs from 14,900 Swiss francs (Dh57,655), including all food, accommodation and a set schedule of medical consultations and spa treatments.
ESSENTIALS
The flights
Emirates flies from Dubai to Phnom Penh via Yangon from Dh2,700 return including taxes. Cambodia Bayon Airlines and Cambodia Angkor Air offer return flights from Phnom Penh to Siem Reap from Dh250 return including taxes. The flight takes about 45 minutes.
The hotels
Rooms at the Raffles Le Royal in Phnom Penh cost from $225 (Dh826) per night including taxes. Rooms at the Grand Hotel d'Angkor cost from $261 (Dh960) per night including taxes.
The tours
A cyclo architecture tour of Phnom Penh costs from $20 (Dh75) per person for about three hours, with Khmer Architecture Tours. Tailor-made tours of all of Cambodia, or sites like Angkor alone, can be arranged by About Asia Travel. Emirates Holidays also offers packages.
Specs
Engine: Duel electric motors
Power: 659hp
Torque: 1075Nm
On sale: Available for pre-order now
Price: On request
UAE SQUAD
Khalid Essa (Al Ain), Ali Khaseif (Al Jazira), Adel Al Hosani (Sharjah), Mahmoud Khamis (Al Nasr), Yousef Jaber (Shabab Al Ahli Dubai), Khalifa Al Hammadi (Jazira), Salem Rashid (Jazira), Shaheen Abdelrahman (Sharjah), Faris Juma (Al Wahda), Mohammed Shaker (Al Ain), Mohammed Barghash (Wahda), Abdulaziz Haikal (Shabab Al Ahli), Ahmed Barman (Al Ain), Khamis Esmail (Wahda), Khaled Bawazir (Sharjah), Majed Surour (Sharjah), Abdullah Ramadan (Jazira), Mohammed Al Attas (Jazira), Fabio De Lima (Al Wasl), Bandar Al Ahbabi (Al Ain), Khalfan Mubarak (Jazira), Habib Fardan (Nasr), Khalil Ibrahim (Wahda), Ali Mabkhout (Jazira), Ali Saleh (Wasl), Caio (Al Ain), Sebastian Tagliabue (Nasr).
Review: Tomb Raider
Dir: Roar Uthaug
Starring: Alicia Vikander, Dominic West, Daniel Wu, Walter Goggins
two stars
Company%20profile%20
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The biog
Name: Timothy Husband
Nationality: New Zealand
Education: Degree in zoology at The University of Sydney
Favourite book: Lemurs of Madagascar by Russell A Mittermeier
Favourite music: Billy Joel
Weekends and holidays: Talking about animals or visiting his farm in Australia
Killing of Qassem Suleimani
The alternatives
• Founded in 2014, Telr is a payment aggregator and gateway with an office in Silicon Oasis. It’s e-commerce entry plan costs Dh349 monthly (plus VAT). QR codes direct customers to an online payment page and merchants can generate payments through messaging apps.
• Business Bay’s Pallapay claims 40,000-plus active merchants who can invoice customers and receive payment by card. Fees range from 1.99 per cent plus Dh1 per transaction depending on payment method and location, such as online or via UAE mobile.
• Tap started in May 2013 in Kuwait, allowing Middle East businesses to bill, accept, receive and make payments online “easier, faster and smoother” via goSell and goCollect. It supports more than 10,000 merchants. Monthly fees range from US$65-100, plus card charges of 2.75-3.75 per cent and Dh1.2 per sale.
• 2checkout’s “all-in-one payment gateway and merchant account” accepts payments in 200-plus markets for 2.4-3.9 per cent, plus a Dh1.2-Dh1.8 currency conversion charge. The US provider processes online shop and mobile transactions and has 17,000-plus active digital commerce users.
• PayPal is probably the best-known online goods payment method - usually used for eBay purchases - but can be used to receive funds, providing everyone’s signed up. Costs from 2.9 per cent plus Dh1.2 per transaction.
Recycle Reuse Repurpose
New central waste facility on site at expo Dubai South area to handle estimated 173 tonne of waste generated daily by millions of visitors
Recyclables such as plastic, paper, glass will be collected from bins on the expo site and taken to the new expo Central Waste Facility on site
Organic waste will be processed at the new onsite Central Waste Facility, treated and converted into compost to be re-used to green the expo area
Of 173 tonnes of waste daily, an estimated 39 per cent will be recyclables, 48 per cent organic waste and 13 per cent general waste.
About 147 tonnes will be recycled and converted to new products at another existing facility in Ras Al Khor
Recycling at Ras Al Khor unit:
Plastic items to be converted to plastic bags and recycled
Paper pulp moulded products such as cup carriers, egg trays, seed pots, and food packaging trays
Glass waste into bowls, lights, candle holders, serving trays and coasters
Aim is for 85 per cent of waste from the site to be diverted from landfill
If you go:
The flights: Etihad, Emirates, British Airways and Virgin all fly from the UAE to London from Dh2,700 return, including taxes
The tours: The Tour for Muggles usually runs several times a day, lasts about two-and-a-half hours and costs £14 (Dh67)
Harry Potter and the Cursed Child is on now at the Palace Theatre. Tickets need booking significantly in advance
Entrance to the Harry Potter exhibition at the House of MinaLima is free
The hotel: The grand, 1909-built Strand Palace Hotel is in a handy location near the Theatre District and several of the key Harry Potter filming and inspiration sites. The family rooms are spacious, with sofa beds that can accommodate children, and wooden shutters that keep out the light at night. Rooms cost from £170 (Dh808).
JAPANESE GRAND PRIX INFO
Schedule (All times UAE)
First practice: Friday, 5-6.30am
Second practice: Friday, 9-10.30am
Third practice: Saturday, 7-8am
Qualifying: Saturday, 10-11am
Race: Sunday, 9am-midday
Race venue: Suzuka International Racing Course
Circuit Length: 5.807km
Number of Laps: 53
Watch live: beIN Sports HD
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million