Price bubbles in lithium markets around the world
The global energy transition to low-carbon technologies for transportation is heavily dependent on lithium. By leveraging advances in time-series econometrics we show that lithium prices (carbonate and hydroxide) have recently experienced market explosive behaviors, particularly from 2016 to mid-201...
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| Format: | Article |
| Language: | English |
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Frontiers Media S.A.
2023-06-01
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| Series: | Frontiers in Energy Research |
| Subjects: | |
| Online Access: | https://www.frontiersin.org/articles/10.3389/fenrg.2023.1204179/full |
| _version_ | 1797797821212000256 |
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| author | Natalia Restrepo Jorge M. Uribe Jorge M. Uribe Montserrat Guillen |
| author_facet | Natalia Restrepo Jorge M. Uribe Jorge M. Uribe Montserrat Guillen |
| author_sort | Natalia Restrepo |
| collection | DOAJ |
| description | The global energy transition to low-carbon technologies for transportation is heavily dependent on lithium. By leveraging advances in time-series econometrics we show that lithium prices (carbonate and hydroxide) have recently experienced market explosive behaviors, particularly from 2016 to mid-2018, and in most lithium markets also from October 2021 to December 2022, thus, the global lithium markets are currently experiencing explosive dynamics. These explosive episodes are accompanied by market corrections and extreme uncertainty which, in the case of lithium, may put at risk the future continuous supply needed for manufacturing lithium-based batteries for the electric vehicle. Governments and private stakeholders could reduce uncertainty imposed by these unpredictable dynamics, for instance, by establishing public stabilization funds and setting up capital buffers that help to diversify operational and market risks induced by future price reversals. Such funds should be ideally located in portfolios, such as the global stock markets or other energy commodities, which exhibit idiosyncratic explosive dynamics unsynchronized with the episodes observed in lithium markets. |
| first_indexed | 2024-03-13T03:54:10Z |
| format | Article |
| id | doaj.art-bf96ed88dab24f88b739765d41761fdb |
| institution | Directory Open Access Journal |
| issn | 2296-598X |
| language | English |
| last_indexed | 2024-03-13T03:54:10Z |
| publishDate | 2023-06-01 |
| publisher | Frontiers Media S.A. |
| record_format | Article |
| series | Frontiers in Energy Research |
| spelling | doaj.art-bf96ed88dab24f88b739765d41761fdb2023-06-22T08:22:09ZengFrontiers Media S.A.Frontiers in Energy Research2296-598X2023-06-011110.3389/fenrg.2023.12041791204179Price bubbles in lithium markets around the worldNatalia Restrepo0Jorge M. Uribe1Jorge M. Uribe2Montserrat Guillen3Department of Accounting and Finance, Universidad del Valle, Cali, Valle del Cauca, ColombiaFaculty of Economics and Business, Open University of Catalonia, Barcelona, Catalonia, SpainDepartment of Econometrics, University of Barcelona, Barcelona, Catalonia, SpainDepartment of Econometrics, University of Barcelona, Barcelona, Catalonia, SpainThe global energy transition to low-carbon technologies for transportation is heavily dependent on lithium. By leveraging advances in time-series econometrics we show that lithium prices (carbonate and hydroxide) have recently experienced market explosive behaviors, particularly from 2016 to mid-2018, and in most lithium markets also from October 2021 to December 2022, thus, the global lithium markets are currently experiencing explosive dynamics. These explosive episodes are accompanied by market corrections and extreme uncertainty which, in the case of lithium, may put at risk the future continuous supply needed for manufacturing lithium-based batteries for the electric vehicle. Governments and private stakeholders could reduce uncertainty imposed by these unpredictable dynamics, for instance, by establishing public stabilization funds and setting up capital buffers that help to diversify operational and market risks induced by future price reversals. Such funds should be ideally located in portfolios, such as the global stock markets or other energy commodities, which exhibit idiosyncratic explosive dynamics unsynchronized with the episodes observed in lithium markets.https://www.frontiersin.org/articles/10.3389/fenrg.2023.1204179/fullspeculative processeselectric vehicleLi-ion batteriesenergy transitionrisk analysis |
| spellingShingle | Natalia Restrepo Jorge M. Uribe Jorge M. Uribe Montserrat Guillen Price bubbles in lithium markets around the world Frontiers in Energy Research speculative processes electric vehicle Li-ion batteries energy transition risk analysis |
| title | Price bubbles in lithium markets around the world |
| title_full | Price bubbles in lithium markets around the world |
| title_fullStr | Price bubbles in lithium markets around the world |
| title_full_unstemmed | Price bubbles in lithium markets around the world |
| title_short | Price bubbles in lithium markets around the world |
| title_sort | price bubbles in lithium markets around the world |
| topic | speculative processes electric vehicle Li-ion batteries energy transition risk analysis |
| url | https://www.frontiersin.org/articles/10.3389/fenrg.2023.1204179/full |
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