Global lithium output is on track to triple this decade, but sales of electric SUVs, sports cars and sedans that rose 55% last year threaten to outrun that. Each battery requires about eight kilograms of lithium, plus cobalt, nickel and other metals.Adding to uncertainty, lithium has emerged as another conflict in strained U.S.-Chinese relations.
GM is buying direct access to lithium by investing $650 million in the Canadian developer of a Nevada mine that is the biggest U.S. source. In return, GM says it will get enough for 1 million vehicles a year.Article content Bolivia’s are the biggest at 21 millions tons, followed by Australia with 17 million and Chile with 9 million.Article content
China accounted for 60% of last year’s sales, two-thirds of production and three-quarters of battery manufacturing. Volkswagen’s battery unit, PowerCo, signed an agreement with Canada last August to develop suppliers of “critical raw materials” including lithium, cobalt and nickel.