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Tesla Model 3 Shooting Up The Lithium Suppliers

A Panasonic Corp's lithium-ion battery, which is part of Tesla Motor Inc's Model S and Model X battery packs, is pictured with Tesla Motors logo during a photo opportunity at the Panasonic Center in Tokyo, ahead of the 2013 Tokyo Motor Show, November 19, 2013. The Tokyo Motor Show will be held from November 22 to December 1. REUTERS/Yuya Shino (JAPAN - Tags: TRANSPORT BUSINESS LOGO) - RTX15JFN

The shortage of Lithium is going to be prevalent in the market for the next decade, and it’s a sure shot fact. Wang Xiaoshen, the vice chairman of JGLC (Jiangxi Ganfeng Lithium Co.) is asking the industry to go volatile in the next year.

The supplier to Tesla Inc. and BMW AG dropped by 28% on Thursday due to the turbulence in the boarder and lithium markets. The Shenzhen shares of Hong Kong Stock Exchange fell down to their daily limit for the consecutive second day. To cope up with this, Ganfeng is soon going to develop its battery interests to capture a wider market.

The demands are rising tremendously and the lithium industry is definitely going to be volatile for the next year. This will open up the opportunities for new suppliers to come into the picture. Not only this, this will also delay the production of some new car projects in the near future. But with Tesla ramping up steadily with the production of Model 3, it might speed up its purchases, again leaving a supply shortage on the global market.

Source- Bloomberg

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Written by Kishan Jhunjhunwala

With roots in Patna, I am a Mechanical Engineer currently employed in Jabalpur. Working as a Senior Engineer in Heavy Machines Sales, I have been associated with different blog sites in different categories for over a year now. The categories include comics, sitcoms, movies and talent acquisitions.

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