• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar

Earth Wise

A look at our changing environment.

  • Home
  • About Earth Wise
  • Where to Listen
  • All Articles
  • Show Search
Hide Search
You are here: Home / Archives for margins

margins

Falling Lithium Prices | Earth Wise

May 1, 2023 By EarthWise Leave a Comment

Producers still working out how to meet the surging demand for lithium

Lithium, the key element in the batteries that power electric cars, as well as smartphones, tablets, and laptop computers, is sometimes called white gold.  Over time, the price of the metal has gone up and up.  But recently, and surprisingly, the price of lithium has actually gone down, helping to make electric vehicles more affordable.

Over the first couple of months of this year, the price of lithium has dropped by nearly 20%.  The price of cobalt, another important component of vehicle batteries, has fallen by more than half.  Even copper, another battery material, has seen its price drop by 18%.

Many analysts predicted that prices of these commodities would stay high or even climb higher.  The reason for the decline, as well as whether it is likely to persist, is the subject of much debate.

Some experts believe that the price drops are a result of demand not being as high as expected, perhaps related to slowing sales growth of EVs in Europe and China after certain subsidies expired.  Other industry experts said that the drop was a result of new mines and processing plants providing additional supply sooner than was thought possible.

Despite the price drops, mining and processing lithium remains an extraordinarily profitable business.  It costs from $5,000 to $8,000 to produce a ton of lithium that sells for ten times that amount.  With such fat profit margins, there is no shortage of banks and investors eager to finance lithium mining and processing projects.  Such profit margins are probably not sustainable and that will likely result in more reasonable prices over time.

There is plenty of lithium in the world.  The huge demand for it is a recent phenomenon and the world is still working out how to meet that demand.

**********

Web Links

Falling Lithium Prices Are Making Electric Cars More Affordable

Photo, posted January 9, 2023, courtesy of Phillip Pessar via Flickr.

Earth Wise is a production of WAMC Northeast Public Radio

SUVs And Carbon Emissions

December 17, 2019 By EarthWise Leave a Comment

Global carbon dioxide emissions increased between 2010 and 2018.  The largest contributor to this increase was the power sector as electricity demand around the world continued to grow.   The second largest contributor to increased emission turns out to be SUVs, even while emissions for other cars actually decreased.

During that time period, SUVs more than doubled their global market share from 17% to 39% and their annual emissions rose to more than 700 million tons of CO2, which is more than the yearly total emission of the UK and the Netherlands combined.

This dramatic shift toward bigger, heavier SUVs has offset both efficiency improvements in small cars and savings from electric vehicles.  If SUV drivers were a nation, they would rank 7th in the world for carbon emissions.

SUVs are bigger, they are heavier, and their aerodynamics are poor.  As a result, it takes more gas to drive them.  They started to become popular in the 1980s – mostly in American suburbia – but now they have become globally popular.

The demand for SUVs is thought to be driven by perceptions of heightened safety or increased social status.  There is also the marketing and business strategy of manufacturers who obtain larger profit margins in the SUV segment.  Of course, for at least some consumers, the utility aspects of sport utility vehicles are actually important and not just the status.

For whatever reasons, SUVs are likely to be extremely popular for the foreseeable future as demand for sedans continues to decline.  Fortunately, electric SUVs are beginning to enter the market – including next year’s mass-market priced Tesla Model Y.  Such cars are the best solution to emissions from SUVs.

**********

Web Links

Demand for SUVs a Major Contributor to the Increase in Global CO2 Emissions

Photo, posted May 9, 2017, courtesy of Yonkers Honda via Flickr.

Earth Wise is a production of WAMC Northeast Public Radio.

Primary Sidebar

Recent Episodes

  • Shrinking Birds | Earth Wise
  • A New Deep-Sea Reef In The Galapagos | Earth Wise
  • Wildfire Smoke And Global Weather | Earth Wise
  • Removing Carbon Dioxide Won’t Get the Job Done | Earth Wise
  • Record Polar Ice Melting | Earth Wise

WAMC Northeast Public Radio

WAMC/Northeast Public Radio is a regional public radio network serving parts of seven northeastern states (more...)

Copyright © 2023 ·