Economy

Shutterstock File photo from a field where an American company is drilling for lithium. Anders Ahlgren/TT 

 

Economy  

Expert: Global lithium shortage could prevail as early as 2025  

 

A global shortage of lithium could prevail as early as 2025 as demand for the metal increases, analysts told CNBC.  

 

In a report, Fitch's research operation BMI writes that the greatest demand is expected from China and the country's electric car market. 

 

"We expect a roughly 20.4 percent annual increase in demand from China's electric car market alone between 2023-2032," writes BMI in the report.  

 

At the same time, BMI predicts that China's own resources of lithium will only grow by 6 percent. 

Bobby Caina Calvan/AP  

Food prices  

El Niño is expected to push up food prices globally  

El Niño is expected to worsen the already gloomy outlook for food prices globally, writes the FT.  

In September, the weather phenomenon is believed to cause extreme heat in parts of southern Asia and Central America. At the same time, heavy rains are thought to drift over the Andes.  

The phenomenon is known to cause problems for agriculture and according to the FT it is likely that both the supply and price of food will be greatly affected.  

The newspaper writes that the feared price increases could lead to more central banks remaining with high interest rates for a longer period of time.