December 30, 2021: The soaring cost of lithium-ion batteries could prompt fresh demand for lead-acid in 2022, various news media including Reuters and Bloomberg have said, citing a report by the Chinese research firm Antaike.

Quoting Antaike analyst Zhang Zhiwei, who spoke at the China Lead and Zinc Conference between December 14-17, Reuters said while the price of lead had stabilized, lithium had picked up very quickly.

Battery-grade lithium carbonate in China has quadrupled in price in 2021 to a record high of $36,514/tonne because of resurgent demand in the EV sector, it says.

Lead, however, gained just 5% on the Shanghai Futures Exchange and in fact has been the worst performing base metal.

“EVs are very much sensitive to the price of lithium batteries… In 2022, I believe there must be some comeback (for lead) because of the price gap,” Zhang said.

“However, the global refined lead market surplus is expected to see a surplus of 95,000 tonnes in 2022, widening from a 19,000-tonne overhang this year, due to a strong rise in secondary lead output.”

The lead concentrate market will also see a bigger surplus next year of 57,000 tonnes, compared to 40,000 tonnes in 2021, Zhang said.