Lithium prices rose more than 400% in 2021; supply agreements failed to keep up

Why the most common lithium pricing mechanisms don't serve the strategic aims of the EV market

Lithium prices shot up by more than 400% in 2021, but producers’ profits didn’t follow the same trajectory. Instead, the vast majority of producers found themselves locked into long-term, fixed-price supply agreements, at prices as low as 300% below spot market rates.

A more sophisticated pricing mechanism is required to ensure the lithium market can attract the investment it needs to meet surging EV demand.

Lithium supply negotiations have not kept up with market conditions

Dec 6-7 | Shanghai

Meet the Chinese and international market in the global hub of battery manufacturing. Enjoy expert insights and unique networking opportunities.

What to read next
Nearly 18 months since the first nickel-related lawsuit was filed against it in the English High Court, the London Metal Exchange has been cleared on all grounds and the charges against it dismissed.
The UK government’s Department for Business and Trade (DBT) will consider all scenarios before a 10% import tariff on electric vehicles and their battery materials comes into effect on January 1 next year, it told Fastmarkets on Wednesday November 29
Western Australia (WA), Australia’s largest state, will evaluate the possibility of developing cathode active materials (CAM) production once precursor CAM (pCAM) output is up and running, Bill Johnston, the state’s Minister of Mines and Petroleum, told Fastmarkets
Eight key takeaways from our global battery raw material outlook that you should know for 2024 and beyond
Black mass payables have weakened in the key South Korean import market over the past week, with battery recyclers in the country cutting back on production amid a continued downtrend in metal prices, sources told Fastmarkets on Friday November 24
There is a sense of cautious optimism in the mining sector following the election of Javier Milei as the new president of Argentina on Sunday November 19, Fastmarkets understands