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Discussion Starter #1
The future of electric cars look expensive past the Bolt EV and the Tesla Model 3 because the electric car boom is causing the lithium prices to spike.

The same lithium used in Tesla's and Chevy's electric cars. Prices doubled from $6,000 a metric tonne to almost $14,000 a tonne over the last six months and it could continue to go up and they automotive companies will need to secure lithium supplies for the future because right now, what they're mining is not enough for the projected demand.

So I guess the game is on for buyers too since the prices of new EVs may go up to balance out the increasing battery production costs.
 

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Major battery manufacturers will have long term contracts in place at what is likely less than the spot market prices. As they tie up more and more of the production to contracted sales, prices will certainly go up. Speculators are also driving the spot prices up, and we'll see how that pans out for them.

In reality, you're looking at about $100 worth of lithium (@$6K/metric tonne) in a 60kWh Bolt. While certainly a factor, probably not a long term issue for LG.

“Tesla has further fueled the investing frenzy around lithium by signing non-binding off-take agreements with two of the earlier-stage contenders; Pure Energy Minerals Limited (CVE:pE) on Sept. 16, 2015, and Bacanora Minerals Ltd. (CVE:BCN) on Aug. 27, 2015. In both cases, Tesla has agreed to purchase minimum tonnages conditional upon the companies being able to meet grade, tonnage, and most importantly, prices required by Tesla.

Neither company, however, has conducted a feasibility study, nor has either ever produced any lithium products. The agreements are therefore difficult to take seriously, and industry insiders speculate that they may be a strategic ploy to force the incumbent global producers of lithium to come down in price.“
 

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Well when you put the price per individual Bolt EV, then it's not too alarming. Guess the current increase is mainly because of speculators.
 

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Discussion Starter #4
So Chevy and Tesla can sign agreements with stable lithium prices for years to come even if the market price for it rises. Makes sense if they are going to buy in bulk in the future.

I thought Tesla's batteries all had lithium in them?
 

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So Chevy and Tesla can sign agreements with stable lithium prices for years to come even if the market price for it rises. Makes sense if they are going to buy in bulk in the future.

I thought Tesla's batteries all had lithium in them?
Panasonic (Tesla supplier/partner) and LG (Bolt battery supplier) certainly have long term contracts for lithium.

And yes, Tesla uses Lithium batteries.
 

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They would have to secure prices in right now since it probably gets factored into the price of the car, they're going to pass the cost onto the consumer but there might be somewhere in the contract that states a rise in price over a certain amount of time, something that's inline with how they typically raise prices of their cars throughout the years.
 
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