Hong Kong media said that China's appetite for battery packs used in electric vehicles has stimulated demand growth, causing the global prices of cobalt, lithium and nickel to rise rapidly.

According to Hong Kong’s South China Morning Post website on July 3, the price of lithium (a silver-white metal usually extracted from sea water) has risen by more than 300% in the past two years. The price of cobalt (mainly as a by-product of nickel and copper mining) rose by 129% last year, and the price of nickel rose by 4.6%, a two-year high.

reported that China's support for the development of electric vehicles to reduce greenhouse gas emissions is the main reason for the increase in the price of these metals.

According to the China Association of Automobile Manufacturers, electric cars accounted for only 2.3% of the 30 million cars produced last year. According to the forecast of Nick Lai, an analyst at JPMorgan Chase & Co., this ratio may increase five times to 12% by 2025.

reported that most electric vehicle batteries are based on lithium, and a mixture of cobalt, manganese, nickel and graphite, and these materials are in great demand.

reported that JPMorgan Chase’s forecast shows that by 2025, the global demand for lithium may increase by 20%.

JP Morgan Chase stated that it is expected that between 2017 and 2025, nickel demand will increase by 11 times.

reported that analysts pointed out that similarly, the demand for copper and primary aluminum is expected to increase in the next few years.

reports that, on the other hand, rising raw material prices are increasingly becoming a concern for Chinese battery manufacturers. China Ningde Times New Energy Technology Co., Ltd. warned in its initial public offering prospectus that the company's business may be affected by soaring prices of key commodities and shortages of required materials.

According to the report, Michael Ferguson, an analyst at S&P Global Ratings, said: "One of the main concerns the market is worried about is that due to the shortage of lithium and cobalt supplies, the normal demand for electric vehicles will slow." He said, the demand for electric vehicles. The increase in volume will benefit mining companies that mine cobalt, lithium or copper.