What could go wrong in the electric vehicle revolution? Not enough lithium
Olemedia/E+ via Getty Images


The electric vehicle sector could be rattled by a surprise shortfall of lithium batteries, warns Blackstone's Byron Wien and Joe Zidle.
As part of their list of ten surprises to watch for in 2022, Wien and Zidle raise the lithium battery wildcard.

"In a setback to its green energy program, the United States finds it cannot buy enough lithium batteries to power the electric vehicles planned for production. China controls the lithium market, as well as the markets for the cobalt and nickel used in making the transmission rods, and it opts to reserve most of the supply of these commodities for domestic use."
Lithium news has lifted some suppliers and producers in the past. Lithium Americas (NYSE:LAC), Standard Lithium (NYSE:SLI), Rock Tech Lithium Inc (OTCQX:RCKTF), Albermarle (NYSE:ALB) and Livent Corporation (NYSE:LTHM) are some of the usual suspects to watch. Meanwhile, electric vehicle players like Tesla (NASDAQ:TSLA), General Motors (NYSE:GM), Ford (NYSE:F), Fisker (NYSE:FSR), Rivian Automotive (NASDAQ:RIVN) and Lucid Group (NASDAQ:LCID) are all hoping for low battery costs as they scale up.
Tesla (TSLA) raced to a new nine-week high today after deliveries expectations soared.