Photo: Panasonic
Battery-electric vehicles are great for local environments thanks to their zero-tailpipe emissions. But making their energy storage units requires many minerals that are abundant in a handful of countries. These nations now want to form an OPEC-like structure to control the price of this important resource and, in the process, increase their international influence.
If you have paid attention to the latest news surrounding oil, then you must have heard about the U.S. trying to stop the Organization of the Petroleum Exporting Countries (OPEC) from limiting daily output because the price of oil was coming down too fast. The current American administration did not succeed in convincing the member countries, so the decision to continue with the release from the domestic Strategic Petroleum Reserve was taken. Up until now, 180 million barrels of oil have been sold to companies in an attempt to keep fuel prices low at the pump and tackle inflation. And, according to the U.S. Treasury, it worked!
Now, Chile, Argentina, and Bolivia are the first countries that admit they are ready to start the talks for establishing the OPEC for minerals. These three South American nations have over half of the global lithium reserves. Their leaders are eyeing to control the price of lithium on a global scale. Likewise, Indonesia is also rich in lithium deposits and wants to adopt new legislation inspired by how OPEC runs things.
However, Australia is currently the world’s top lithium producer, according to a study published by the U.S. Department of the Interior. Even so, most of the lithium imported by the U.S. came from Argentina, Chile, and China, according to the same document.
Still, Chile, Argentina, and Bolivia would like to have Australia onboard. According to qz, Russia and China have not been taken into consideration yet, despite the latter being the world's largest EV manufacturer.
For now, the initiative to form an OPEC-like organization for minerals used in EVs is an idea that is being discussed by top officials from the three South American countries. Succeeding in doing what they intend to accomplish is an entirely different story. But carmakers and governments from heavily industrialized countries need to pay attention to these kinds of developments. Otherwise, EV batteries could remain expensive for a long time.
Now, Chile, Argentina, and Bolivia are the first countries that admit they are ready to start the talks for establishing the OPEC for minerals. These three South American nations have over half of the global lithium reserves. Their leaders are eyeing to control the price of lithium on a global scale. Likewise, Indonesia is also rich in lithium deposits and wants to adopt new legislation inspired by how OPEC runs things.
However, Australia is currently the world’s top lithium producer, according to a study published by the U.S. Department of the Interior. Even so, most of the lithium imported by the U.S. came from Argentina, Chile, and China, according to the same document.
Still, Chile, Argentina, and Bolivia would like to have Australia onboard. According to qz, Russia and China have not been taken into consideration yet, despite the latter being the world's largest EV manufacturer.
For now, the initiative to form an OPEC-like organization for minerals used in EVs is an idea that is being discussed by top officials from the three South American countries. Succeeding in doing what they intend to accomplish is an entirely different story. But carmakers and governments from heavily industrialized countries need to pay attention to these kinds of developments. Otherwise, EV batteries could remain expensive for a long time.
Google News