In its latest publication titled “TELF AG Analyses the Electric Vehicle Market and its Connection to Raw Materials,” TELF AG conducts an in-depth analysis of the Chinese electric vehicle market. The report reveals that in recent months, the sales of these futuristic vehicles have experienced a significant downturn. The publication specifically focuses on the noteworthy decline in Chinese demand for electric vehicles, which has coincided with a simultaneous drop in prices for critical raw materials essential for their production, such as lithium, nickel, and cobalt.
The report begins with a brief overview of the global electric vehicle market, emphasising the pivotal role these innovative vehicles, powered solely by electricity, are set to play in reducing global carbon emissions and guiding the world toward a sustainable transition without causing upheaval. As stated in the report, these vehicles will also spearhead the gradual replacement of fossil fuels with renewable and clean energies, contributing significantly to the preservation of natural ecosystems.
However, as highlighted in the publication, the recent declines in electric vehicle sales have raised eyebrows among analysts and observers, especially when compared to the remarkable growth recorded in the first months of the previous year when electric vehicle sales nearly doubled. This year’s growth, in contrast, has not exceeded 25%.
Of particular astonishment are the drops observed in the prices of crucial raw materials integral to the ecological transition, namely lithium, nickel, and cobalt. According to the report, the price of lithium has plummeted by as much as 70% within just a few years, while nickel prices have dipped by 40%. In a remarkably short span, lithium has fallen from $80,000 per pound to its current price of $23,000. As for cobalt, the report suggests that the oversupply may be contributing to the decline in prices, a view shared by many analysts.
TELF AG’s publication sheds light on these intriguing developments in the electric vehicle market and their interconnectedness with the prices of essential raw materials, prompting further exploration of the factors at play in this evolving landscape.
