Carmakers face a battle for the rest of the decade to secure the lithium needed to help power the electric vehicle revolution, as demand threatens to overwhelm supply, one of the biggest producers of the metal has warned.
Lithium’s use in electric car batteries has put the raw material at the heart of a global competition that has pitted the world’s largest carmakers against each other and drawn in governments as they all race to increase and safeguard supply.
This year carmakers ranging from Stellantis to BMW have invested in lithium start-ups, underlining the pressure the industry faces as more of the world shifts to electric vehicles. Last week, General Motors said it would pay Livent, another producer, $200mn upfront to secure the raw material.