How is a lithium crisis tied to an inflation reduction act?
The Inflation Reduction Act’s (IRA’s) new restrictions will have an impact on lithium-based batteries, which are a crucial component of electric vehicles (EVs).
According to Inflation Reduction Act’s (IRA’s) lithium, used in batteries, be sourced from either North America or U.S. trading partners.
Vehicles won’t be eligible for subsidies after 2024 if their minerals or parts are sourced from “foreign entities of concern” like China and Russia.
The current state of the world’s lithium market is uncertain. A significant determinant of whether the United States can achieve its objectives under the IRA may be the public’s opposition to mining.
If demand trends continue on their current track and supply stays restrained by political and societal constraints, pressures on prices and production will undoubtedly increase.
Lithium prices have increased recently, and output has increased significantly as well. New reserves did not initially cause a rise in production.....