{"id":303967,"date":"2024-02-23T20:08:10","date_gmt":"2024-02-23T19:08:10","guid":{"rendered":"https:\/\/climatescience.press\/?p=303967"},"modified":"2024-02-23T20:08:14","modified_gmt":"2024-02-23T19:08:14","slug":"electric-vehicles-are-so-unpopular-that-entire-mines-are-shutting-down","status":"publish","type":"post","link":"https:\/\/climatescience.press\/?p=303967","title":{"rendered":"Electric Vehicles Are So Unpopular That Entire Mines Are Shutting Down"},"content":{"rendered":"\n
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From The Daily Caller<\/a><\/p>\n\n\n

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WILL KESSLER<\/a><\/p>\n\n\n\n

CONTRIBUTOR<\/p>\n\n\n\n

A slowdown in the growth of electric vehicle (EV) demand has led to entire mines being shut down as the supply of rare earth minerals essential for EV components exceeds demand, according to The Wall Street Journal.<\/p>\n\n\n\n

Mines around the world are ceasing operations or halting construction projects in response to the falling demand, such as a $1.3 billion plant in North Carolina operated by Albemarle. which announced that it was deferring spending on the project amid the market turmoil,\u00a0according<\/a>\u00a0to the WSJ\u00a0 The total market\u00a0share<\/a>\u00a0of EVs rose from 3.1% in January 2023 to 3.6% in December 2023, while the share of U.S. vehicle inventory grew from 2.8% to 5.7% in that same time frame as demand fails to keep up with supply.\u00a0(RELATED: California EV Sales Decline For First Time In A Decade As State Continues Green Push)<\/a><\/strong><\/p>\n\n\n\n

Over the last few years, global mineral producers have ramped up mining operations in an attempt to capitalize on the emerging EV market, but consumers have declined to adopt EVs at the rate producers were expecting, leading to rare minerals flooding the market and driving down prices, according to the WSJ. The market for metals is often subject to boom-and-bust cycles due to unpredictable demand and the slow speed at which mines can be brought into operation.<\/p>\n\n\n\n

The price of lithium is down around 90% since the beginning of last year, and the price of nickel has been cut in half in that same time frame, according to the WSJ. A mine on the French Pacific island of New Caledonia recently suspended operations, despite providing more than 6% of the world\u2019s nickel supply.<\/p>\n\n\n\n

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A scramble to secure strategic minerals such as copper, cobalt, lithium, and nickel could increase price pressures and raise the cost of the climate transition, IMF economists write in the latest issue of F&D. https:\/\/t.co\/X72oppqbAe<\/a> pic.twitter.com\/hoqLoenEdb<\/a><\/p>— IMF (@IMFNews) February 17, 2024<\/a><\/blockquote>