The impact of the lithium material bottleneck is extensive.

The "lithium triangle" of Chile, Bolivia, and Argentina, which holds 56% of the world's lithium reserves, is well known. The world was shocked to learn that these three nations intended to create a "Lithium OPEC" that would be identical to OPEC at the beginning of November. In the future, "LiPek" will have a significant impact on China's automobile sector.

Japan's and Germany's auto industries were both tremendously profitable and served as the backbone of their respective nations. China, however, discovered that the electric car business couldn't achieve the same profitable profits as the oil vehicle sector, which once monopolized the electric vehicle market. The cost of lithium raw materials makes up 40% of the price of battery cells, while the price of battery packs makes up 40% to 60% of the price of entire vehicles. Except for Tesla and BYD, the entire downstream business consequently lost all its capital.

Electric cars were a popular topic on the market, but buyers were concerned about battery life, and the expensive price of batteries caused a bottleneck, thus making it difficult for automakers to turn a profit. The industry must prepare for the eventual price of lithium materials to be fixed by "Li-Pek".

The entire electric vehicle industry will eventually become unprofitable and tasteless if the price of lithium materials is regulated upstream. The EV industry needs to be successful and make money because it cannot survive if it is not profitable and making money. Eliminating present battery technology, reducing reliance on lithium raw materials, and lowering the cost of automobile production are the only solutions.