Lithium prices are falling alongside EV sales
Good morning! Today, we're excited to celebrate International Waffle Day, a delicious holiday that has been observed for over a century in several countries around the world. On this day, people from all walks of life come together to enjoy the fluffy, golden goodness of waffles. Whether you prefer them sweet or savory, with syrup or whipped cream, there's no denying that waffles have a special place in our hearts and stomachs. 🧇
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The supply of Lithium has increased exponentially in the last few months which cause the price to be driven downward. The reason the supply is suddenly so abundant is that electric car sales have fallen by the wayside. Lithium, the main thing used in electric batteries, is not being used and has caused a surplus. Just since November 2022, the average price of lithium carbonate declined by almost 50%, according to data reported by Bloomberg. In 2022, there was such a high demand for lithium that the prices skyrocketed… but now it seems they are returning “back to normal”.
Check out today’s featured article from OilPrice.com to read about the expected continual price decline and lithium surplus for the rest of 2023. Will the surplus lead to cheaper electric vehicles? Or are the prices bound to rise again?
Trade & Border Issues 🌏
China tariffs: causing more hurt than gain?
During the Trump administration, several rounds of tariffs were imposed on Chinese goods as part of a trade war between the two countries. The tariffs were intended to reduce the trade deficit between the US and China, address issues related to intellectual property theft and forced technology transfer, and promote fairer trade practices. However, they also had significant impacts on businesses and consumers in both countries.
It was reported that the tariffs helped American companies and raised domestic production but not all were happy about it. An agency specializing in economic models said that they found many impacts from this aggressive tariff. Most of the data showed that prices increased but it also showed that the United States production level increased. The largest number of imports that declined in value were car parts, they fell almost 51%. While almost all of this sounds great the people that are downstream of the imports saw a huge loss. Companies in the steel and aluminum production industry saw a 3% decline since this tariff, some even as much as a $469 million loss.
Electric Vehicles & Business Strategy 🔋
Battery supplier Entek launches new plant in Indiana
Entek is a manufacturing company that produces lead-acid battery separators and related products. The company was founded in 1981 and is headquartered in Lebanon, Oregon, USA. Entek's primary focus is on the production of polyethylene and polypropylene battery separators, which are used in a wide range of lead-acid batteries for applications such as automotive, industrial, marine, and stationary power. The company also offers related products such as battery paste mixers, coaters, and curing ovens. Entek has manufacturing facilities in the USA, the UK, and Indonesia, and serves customers in over 40 countries worldwide. The company is committed to sustainability and environmental responsibility and has implemented a range of initiatives to reduce waste and conserve resources in its manufacturing processes.
Now Entek is planning on opening operations in Terre Haute, Indiana. This plant would produce enough battery power to charge up to 1.6 million electric cars a year by 2027. This factory has $1.5 billion invested in it by the Oregon-based company. Already they are planning to have the warehouse be over 1.4 million square feet spreading across 4 buildings, this would be the largest operation Entek has invested in. To help fund the project the Department of Energy gave the company a $200 million grant because of the Bipartisan Infrastructure Law.
The Workday Dash is an aggregation of articles regarding the transportation logistics, trucking, and supply chain industries for November 28, 2024, from iLevel Logistics Inc.