Tag: lithium

Categories
Electronic Components Environment

Increase in lithium battery recycling

Increase in lithium battery recycling

The Department of Energy (DOE) is making further investments in lithium battery recycling.

In late February the DOE loaned battery recycling company Li-Cycle $375 million to build a plant near Rochester, New York.

This followed several other recycling companies’ announcements about lithium battery recycling facilities, including Ecobat and Redwood Materials.

The latest facility will be Li-Cycle’s fifth in North America.

Significant investment

Many facility announcements have come as production and popularity of EVs grows in the US. Not only in recycling, but also lithium battery production. Earlier this year the DOE announced a $700 million loan for a processing facility at the Rhyolite Ridge lithium deposit in Nevada.

The company in charge of the facility, Ioneer, states there will be enough lithium produced from the site to build 400,000 EVs each year.

The goals

The US is aiming for 500,000 EV chargers and 50% of all new light-duty vehicle sales being electric by 2030. They are further hoping to be a net-zero emissions economy by 2050.

Sales of EVs in the US were 630,000 in 2021, according to the International Energy Agency. This would need more than 7,560 tonnes of lithium. To reach the goals stated by the Biden Administration, 90,000 tonnes of lithium would need to be produced. This is 1700% more than the lithium currently mined in the US.

Slow and steady

A lithium mine takes between four and 20 years to begin commercial production. Although there are several projects underway in the country, there’s no telling when these might become steady sources of lithium.

Lithium mining is a concern due to the water consumption and toxic chemicals that can leak into the environment. There are also lithium shortages predicted as soon as 2025. Recycling would make the production of lithium batteries more sustainable and potentially mitigate future shortages.

The cost of recycling these batteries can be high. There are additional risks with lithium batteries, demonstrated by the 245 fires across 4 waste facilities caused in the past. The process is pretty time-consuming too. Consequentially, the price of running safe recycling facilities is quite high.

There is hope, though, that it will be worth it in the future. 

Guaranteed

Lantek is a distributor with decades of experience in the electronic components industry. Whether you’re looking for new shortage components or obsolete ones, trust Lantek to provide what you need. Call us today on 1-973-579-8100 or send us an email at sales@lantekcorp.com.

Categories
Electronic Components Supply Chain

US Japan critical minerals agreement

US Japan critical minerals agreement

The US and Japan agreed last week to strengthen their supply chains of critical minerals like cobalt, lithium and nickel.

The agreement

In the agreement, signed on March 28, the partners agreed to not impose export duties between the US and Japan on critical minerals. They also said they would take action to address non-market policies of other countries that impact the critical minerals trade.

As the US diversifies its trading partners, they risk further complications in its critical minerals supply chain.

As part of the agreement the investments made by foreign powers in the industry will be reviewed. The allies will also upgrade their
information-sharing and enforcement in relation to labor rights violations.

Trade Representative for America Katherine Tai said Japan was a valued trading partner. She said the partnership
was a welcome moment to strengthen the critical minerals supply chain.

Japan’s Ambassador to the US, Tomita Koji, added that securing critical minerals was vital. This, he said, was partly due to the
increased demand for electric vehicles and the batteries powering them.

Partners

The two countries made other trade agreements in relation to the semiconductor industry. The countries made an agreement in July last year to create a joint research center for next-generation semiconductors.

The agreement was brought in for similar reasons, to soften America’s relationship China.

The US and Japan said during the launch that they want to establish supply chain resilience in the sector, and said they would build a strong battery supply chain.

Are you looking for a partner?

 

Lantek is a company that always puts its customers’ needs first. We will work with you to make sure we source all the electronic
components you’re looking for. Contact us today on 1-973-579-8100 or via email at sales@lantekcorp.com

Categories
Electronic Components

Price hikes in the electronics industry

Price hikes in the electronics industry

More price increases announced

Chip prices will continue to increase, despite some component lead times improving. This is due to inflation, labour shortages, and scarcity of raw materials, among other things.

Intel was the latest company to announce price increases, which it will supposedly introduce at the end of this year. It joins firms including TSMC, Samsung, and Texas Instruments in raising the cost of its products.

As has become very clear, the pandemic contributed to supply shortages the world over. However, there have also been issues with labour shortages, material sourcing and the increasing costs of everything.

Reverse psychology?

Processors are increasing in price at Intel and other companies. It has been suggested that this actually may be due to oversupply. If the cost of the components is increased vendors are more likely to buy the stock before it occurs. As they stock up, Intel’s supply levels will decrease. This may lead to shortages in the long-term.

These increases are due to be introduced at the end of 2022, but people are suspicious it may happen sooner. If prices are instead increased in autumn, they can be discounted for events like Black Friday and Christmas.

War and price

Inflation is causing the price of materials to increase also, which inevitably would be passed down the supply chain. The price of raw materials was always going to increase over time, but the conflict in Ukraine has exacerbated this. Gases like neon, which is used in semiconductor production, is almost wholly (70%) sourced by Ukraine. Similarly, 40% of krypton gas is also from Ukraine, which is in conflict with Russia.

Aside from these materials, the price of lithium, cobalt and nickel, used for EV batteries, is also rising. The EV industry already had price hikes when the pandemic began, when the chip shortage took its toll. Now, following the 15% increase in 2021, automakers are facing another potential price increase.

Expansion

One of the largest players in the industry, TSMC, announced its price increases would take place in 2023. Despite not being as severe as first speculated, the 6% price increase will be enough that customers will notice.

Aside from the cost of raw materials, electricity and labour expenses, TSMC is also expanding. To fund this expansion it is increasing the price of fabrication.

Could we have stopped it?

Years before the pandemic, as far back as 2017, there were signs that a shortage was on its way. New technologies were mounting and other geopolitical difficulties were afoot. Even then, the best way to avoid this would have been to redesign the tech and improve the fabrication process. This would have been a time-consuming and expensive process, and whenever it happened it would result in delays and losses.

Conclusion

The amalgamation of all these factors will lead to lasting price increases for electronic components. Even if these prices are discounted in peak times like Black Friday or Christmas, suppliers will still have to deal with inflation and material shortages.

The expansion plans of some of the industry’s big players, and the cost of the tech to sustain them will also lead to price increases. How long the effects of these will last, we’ll have to wait and see.