in January, BYD obtained a contract to extract lithium in Chile and meant a great advance in its horizontal expansion considering that the Latin American country is the second country in the production of this material. Lastly, according to the novelties mentioned by Chinese journalism, a report would indicate that BYD is dramatically accelerating this strategy by agreeing to acquire six mines in Africa capable of producing enough lithium for more than 27 million electric vehicles. A figure that could be enough to cover the demand for lithium for the next 10 years.
For analysts, these purchases would be indicating that the automaker anticipates a prolonged shortage of lithium, according to Daiwa Capital Markets.
The strategy of companies that favors Argentina
Automakers are eyeing ever-tighter involvement in their supply chains, including in mining and refining battery metals, after a year of rising costs has pushed many manufacturers, including BYD, to raise prices. .
Electric car battery prices are expected to rise this year for the first time in more than a decade, and inflationary tensions could delay the time when electric models become as affordable as conventional cars, according to Bloomberg NEF.
Though Elon Musk tweeted in April that Tesla “needs to get into the mining business,” noting two years ago that the company had acquired the rights to a lithium clay deposit in Nevada, the company is primarily focused on striking supply deals with providers.
Argentina is one of the countries with the most lithium reserves in the world. With about 1,900,000 metric tons. For this reason, it appears in the sights of several companies that work with electric batteries, based on this metal. And Elon Musk, the richest man in the world and CEO of Tesla, is one of the big stakeholders.
Source: Ambito
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