The free market strikes again. Basically, manufacturers responded to the increased demand from batteries and boosted supply of Lithium and Cobalt. To the point where now supply exceeds demand. Since the article is paywalled, here are some quotes:
"After more than doubling from 2016 to early in 2018, prices for two of the materials used in the batteries that power smartphones and electric vehicles have extended a monthslong slide and are now down more than 50% from last year’s peaks."
"While analysts had previously expected demand for lithium and cobalt to outstrip supply, a wave of new output and falling electric-vehicle sales in China have dented sentiment in the small, volatile sector."
"Despite hopes that an improving global economy will lift commodity demand, analysts expect the supply of battery materials to exceed demand in the next few years."
Battery Metals Slide as Other Commodities Stabilize
"After more than doubling from 2016 to early in 2018, prices for two of the materials used in the batteries that power smartphones and electric vehicles have extended a monthslong slide and are now down more than 50% from last year’s peaks."
"While analysts had previously expected demand for lithium and cobalt to outstrip supply, a wave of new output and falling electric-vehicle sales in China have dented sentiment in the small, volatile sector."
"Despite hopes that an improving global economy will lift commodity demand, analysts expect the supply of battery materials to exceed demand in the next few years."
Battery Metals Slide as Other Commodities Stabilize
