[Ferro-Alloys.com] Value of battery metals in newly-sold EVs tripled on rampant lithium, nickel prices 

The EV Metal Index, which tracks the value of battery metals in newly registered passenger EVs (including full battery, plug-in and conventional hybrids) around the world, totalled $26.9 billion in 2022, an increase of 232% compared to the prior year.

That figure means as much EV battery metal business was done in 2022 than the combined total of the preceding five years. And that came despite pandemic lockdowns for most of the year in the world’s largest EV market and turmoil in Europe, the world’s no. 2 electric car market, due to the Ukraine war. 

In fact, the value of battery metals deployed in December last year alone surpassed all of 2019 and 2020 combined. A rush in end-of-year registrations is a feature of the global vehicle market, but December was a blockbuster month in all aspects. 

Total battery capacity of the 1.64m EVs sold during December set a new monthly record, expanding 29% year on year to 63.6 GWh, according to Adamas Intelligence, which tracks demand for EV batteries by chemistry, cell supplier and capacity in over 100 countries. 

Blockbuster December

In December 2022, a record 38,061 tonnes of lithium carbonate equivalent were deployed onto roads globally (55% carbonate, 45% hydroxide) in the batteries of all newly sold passenger EVs combined, up 46% over the same month the year prior. 

Lithium prices were also peaking in December around $70,000 a tonne, which lifted the lithium subindex to $2.7 billion during the month, surpassing December 2021 by 280%. 

The same was true of nickel, with a record 27,676 tonnes in newly-sold EVs rolling off the lot in December, up 40% over the same month the year prior. The value of the nickel in hybrids and battery electric vehicles jumped to $856m, 15% above the previous record set in March last year when the London nickel market was in the throes of a crisis throes of a crisis and prices spiked. 

Cobalt blues

The cobalt subindex dropped 28% however, after prices for the metal halved over the course of the year and declining cobalt use in batteries eroded growth in absolute deployment tonnage. 

According to Adamas data in the second half of last year average cobalt use in EVs was flat as LFP batteries continue to grow in popularity. In contrast, lithium use per vehicle jumped 17% as average battery pack sizes grew and the global EV sales mix reached 89% full battery-powered cars.   

In December 2022, a record 57,980 tonnes of synthetic and natural graphite were deployed, up 48% year on year setting a new record in terms of value as prices consolidated around the early $800s per tonne. 

While January 2023 saw the index halve from December, there is likely more weakness ahead given sharp decline in lithium prices in China in recent weeks, a ‘normalizing’ nickel price and ongoing troubles for cobalt both in terms of price and usage.  

• [Editor:邢亚敏]