SHANGHAI, Jun 13 (SMM) – The International Energy Agency (IEA) plans to launch electric vehicle raw material import benchmarks/guidance before the end of 2023, aiming to limit import dependence of its members on a single supplier for key minerals that are essential for the spread of renewable energy. Lithium, nickel and cobalt will be targeted, and levels of total procurement by IEA member countries will be set for those minerals.
Introduction of the IEA:
The IEA was established mainly by developed countries after the oil crisis in the 1970s. More than 50% of the participants are members of the European Union, along with countries such as Japan, the United States, South Korea, the United Kingdom and Australia.
Taking the EU as an example, about 80% of its lithium resources come from Chile. By 2030, the aim is to reduce dependence on one country to below 65% of consumption levels and increase supply within member states to at least 10%. Other countries have introduced similar targets. Its goal does not define the absolute magnitude of supply, but specifies the proportion of supply. In order to guard against the risk of disruption and reduce the degree of dependence on specific countries, member states will take the following measures:
①Explore joint procurement channels to prevent the risk of supply chain disruption;
②Consider joint investment by several member states in another resource-rich country and facilitate the establishment of internal supply chains.
It can be seen that the stability of resources and the establishment of supply chains are inevitable for enterprises to operate. On the basis of ensuring the stable supply of their own resources, exploring the stability and standardization of internal supply chain systems is still the main direction of future development.
At present, in the absence of significant improvement on the demand side, supply shortage is more prominent, and the imbalance between supply and demand has led to an increase in the price of lithium carbonate. Most lithium carbonate smelters are holding back cargoes in hopes of selling at higher prices in the future. Downstream enterprises still possess certain amount lithium carbonate inventories and thus restocked based on rigid demand at the current high prices. Stalemate between upstream and downstream enterprises in the entire industry chain is still going on.
