January 02, 2025

Lithium’s wild ride

38 minutes

If you’ve followed global lithium prices over the past few years, you know what a wild ride it’s been. Chinese spot prices shot to record highs in 2022 and then came crashing back down by 2024 — with big consequences for batteries and EVs that depend on the mineral.

So what happened? And what could happen next, especially as EV sales have been slower than expected?

In this episode, Shayle talks to Ernest Scheyder, author of “The War Below: Lithium, Copper, and the Global Battle to Power Our Lives” and senior correspondent at Reuters. They walk through the basics of lithium production and the recent timeline of key events affecting the industry, covering topics like:

Why more of the world’s lithium comes from hard rock spodumene than salt brines

How lithium is not one commodity at one price, but actually a variety of forms of the mineral at different prices

Lithium’s shift from a niche industry serving nuclear and pharmaceutical supply chains to a global force supplying the battery transition

The current oversupply, driven by Chinese producers that operate at a loss, and the western companies that are trying to challenge them

Chile’s efforts to nationalize its lithium industry and shift to direct lithium extraction, which has not worked at commercial scale

Recommended resources

Simon & Schuster: The War Below: Lithium, Copper, and the Global Battle to Power Our Lives

Latitude Media: Are things about to turn around for the U.S. battery sector?

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