By Elric Langton and Alex Langton | 30 December 2023
The lithium conundrum β a modern tale of supply, demand, and the ever-shifting sands of the electric vehicle (EV) market. The unexpected twist in Germany's EV subsidy narrative could send ripples through the lithium investment landscape, a sector already pulsating with the electric tension of high-stakes bear maulings.
On the one hand, this subsidy withdrawal might initially seem like a cold shower for lithium investments. After all, the EV market is a voracious consumer of lithium batteries, and any slowdown in EV adoption could dampen the demand for these power-packed cells. This could lead to a short-term jitteriness among investors, potentially cooling the ardour for lithium mines and battery production facilities. It's like being promised a gourmet feast only to find the kitchen's run oβ¦