Price No Object
Chinese company Gochin announced on April 13 that it will invest US$10 billion in lithium mines in Afghanistan, where lithium reserves are estimated at US$2 trillion or so.
These days, the United States and Europe are curbing EV battery material exports from China. In response, China is making aggressive supply chain investments in various regions, including Australia and Latin America, regardless of the prices of the materials.
For instance, the price of lithium carbonate is falling these days. Specifically, the price per kilogram was 179.5 yuan (US$26.12) on April 13, down 32.35 percent from the previous month’s average and down 61.44 percent from the previous year’s average. This is because the EV demand in China is falling with regard to subsidies and EV battery manufacturers’ aggressive facility expansion has led to oversupply.
The oversupply may lead to dumping prices. According to industry sources, LFP battery prices are likely to fall further with Tesla, Volkswagen, Ford and so on considering using more LFP batteries.