Monday, February 7, 2011

Lithium

Here is an article from the New York Times on how changes in the demand for lithium are impacting the supply of lithium. Given that lithium is a key component in the batteries that run hybrid and electric cars, the demand for lithium has been increasing over the last few years. Firms are now signing deals to increase the mining (i.e. the supply) of lithium in response to the change in demand, exactly as the supply and demand model shows us.

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