While the US government is imposing regulations to ban gas car manufacturing by 2030, Keith Phillips, CEO of Piedmont Lithium (PLL), said in an interview with Yahoo Finance that there is not enough lithium in the world to meet this demand by 2035.
“There’s going to be a real crunch to get the material. We don’t have enough in the world to turn that much [lithium] production in the world by 2035.” Keith Phillips, CEO of Piedmont Lithium
With the current technology,
8-10kg of lithium is needed for car batteries. this naturally means that lithium remains an important material in the shift to zero-emission automobiles. Growing demand has led the price of lithium carbonate to nearly double this year alone, and the IEA predicts that demand will expand 40 times over the next two decades.
President Biden has set a target of having all new automobiles sold in the United States be electric by 2030 regardless of the lithium situation and other challenges.
A credit of up to $7,500 will be provided to encourage people to make the transition. However, once the new regulations go into effect, most EVs sold in the United States will no longer be eligible for a tax credit.
this massive switch to electric vehicles will also increase the demand for electricity and will put further pressure on cities that are currently struggling to prevent blackouts.