Prices of Lithium, Cobalt and other lithium battery materials

The Future of Battery Prices: A Balancing Act

The battery industry is abuzz with conflicting views on price dynamics. While some experts predict a rise in prices due to increasing metal costs, others foresee a decline driven by advancements in research and development (R&D) and economies of scale. In this article, we'll delve into the factors influencing battery prices and explore the exciting developments shaping the industry's future.

 

Key Factors Influencing Battery Prices

1. Cathode Material Choices: The availability of various chemistries and the quest for cost-effective alternatives will significantly impact price dynamics.
2. Reducing Cobalt Content: Efforts to minimize the use of expensive metals like cobalt will help mitigate price volatility.
3. Breakthroughs in New Cathode Materials: Ongoing research into innovative materials holds promise for reducing costs and enhancing performance.
4. New Mining Discoveries: The discovery of fresh mineral deposits could stabilize supply chains and moderate prices.
5. Alternative Battery Technologies: The emergence of new battery types, such as sodium-ion, magnesium-ion, and lithium-air batteries, may disrupt traditional pricing models.
    
   

The Cobalt Mystery

Cobalt, a crucial component in cathode production, has been a significant price driver. However, concerns over artisanal mining practices in Congo have led to a push for more sustainable and ethical sourcing. In addition, Tesla's success in reducing cobalt content (with introduction to high Ni cathode material) in their batteries offers a promising precedent.

source: tradingeconomics.com
Price of cobalt prices in US $ per Metric tonne in last ten years.

 

Nickel and Lithium: Essential Metals with Their Own Challenges

Nickel, another vital metal, faces availability concerns, while lithium's limited resources and geographic concentration make it a precious commodity. As demand for lithium rises, driven by the growth of electric vehicles, its price is likely to fluctuate.

 

 

A Closer Look at Lithium in 18650 Cells

Typically, a high-power 18650 cell contains around 0.8 grams of lithium, accounting for approximately 1.8% of the cell's weight. When calculated for a pack, this percentage drops to around 1%. Reports suggest that lithium costs contribute about 3% to the overall cell cost.

 

Rise and fall of cobalt prices - An increase in EV's consumption has been projected by many surveys in last few years. Most of the EV use  batteries with NCA/NMC chemistry and cobalt was of around 33% of the transitional metal (TM) used, even LCO was also a popular cathode with 100% of TM. Since most of the cobalt is mined from Congo and expecting a rise of prices lead to accumulation of reserves which in turn increased a drastic demand leading to constantly rise in prices. After the decreases in use of cobalt, the artificial demand has lowered and decline in prices. Still there is estimation of increase in cobalt price with estimation of EV and battery rise in 2030 to be 300GWh

Nickel

Nickel is also an important metal required in cathode and its cost also increasing but the availabilty is better than cobalt or lithium.

source: tradingeconomics.com

Price of Nickel prices in US $ per Metric tonne in last five years

Lithium
Limited resources and confined to few countries makes the lithium precious.

It is the world’s lightest metal, and dubbed as “white petroleum” since it powers the modern electric vehicles and its color. Around 50% of Lithium is used in non battery activities like glass, ceramics, lubricants, and casting powders. Rise of EV and forecast is driving the demand to new highs.

 

source: tradingeconomics.com

Lithium prices in terms of index points from May 2017

How much weight of Lithium can a typical 18650 cell has?

High power cell of 3000mAh with LiCoO2 chemistry has 0.8 gm of Li in a 45 gm cell (1.8%). The electrolyte also has Li ions but in a minute amount. When the weight of lithium is calculated for a pack then it decreases even more and can be around 1%

A nice article in National Geographic - This metal is powering today's technology—at what price?