Lithium is an essential material in the production of lithium-ion batteries (LIBs), which power electric vehicles. This paper examines the global value chain (GVC) for lithium as part of a series of working papers that map out the global sources of mining, refining, and value-added for the key LIB materials.
How important is the value chain for lithium-ion battery development?
As the global transport sector ramps up the transition towards electromobility, the value chain of raw materials for lithium-ion battery (LIB) development is becoming crucial. Assessing the criticality of material value chains identifies potential supply risks within these value chains and can better inform battery technology development.
Depending on the chemistry, lithium-ion battery costs are sensitive to lithium, cobalt, nickel, and graphite prices; the availability of these key materials could put upward pressure on LIB prices (Hertzke et al. 2019).
Lithium, cobalt, nickel, and graphite are integral materials in the composition of lithium-ion batteries (LIBs) for electric vehicles. This paper is one of a five-part series of working papers that maps out the global value chains for these four key materials.
What is a lithium-ion battery?
Source: Goldie-Scot 2019, “A Behind the Scenes Take on Lithium-Ion Battery Prices.” a The basic LIB unit is the “cell” that contains the electrodes, separator, and electrolyte. The battery pack is a collection of cells and accessories. BloombergNEF surveys produced LIB prices.
One source estimates that LIB prices have dropped from $1,160 to $176 per kilowatt-hour, an 85 percent drop, in the last two decades, making EVs more affordable (Figure 2). Source: Goldie-Scot 2019, “A Behind the Scenes Take on Lithium-Ion Battery Prices.” a The basic LIB unit is the “cell” that contains the electrodes, separator, and electrolyte.
Are lithium-ion batteries the future of electric vehicles?
Volume 7, article number 28, (2024) With the proposal of the global carbon neutrality target, lithium-ion batteries (LIBs) are bound to set off the next wave of applications in portable electronic devices, electric vehicles, and energy-storage grids due to their unique merits.