Prime Minister Scott Morrison’s announcement earlier this week to ramp up the rollout of charging stations is further confirmation that the electric vehicle (EV) megatrend is happening. With the European Commission leading the charge and set to ban new petrol, diesel and hybrid cars from 2035, car manufacturers globally are investing billions of dollars in electric vehicles.

This is driving (pardon the pun) a surge in the prices of lithium and other materials that go into the batteries that EVs require. The chart below shows the price for lithium carbonate (in Chinese yuan per tonne). It has almost quadrupled since mid-2020.

Other lithium substances such as the higher grade spodumene, which the Australian hard rock miners produce, show a similar story.

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