Economics Assignment

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Running head: ECONOMIC ASSIGNMENT
Economics assignment
Name of the student
Name of the university
Author note

ECONOMIC ASSIGNMENT
Table of Contents
Answer 1....................................................................................................................................2
Answer i)................................................................................................................................2
Answer ii................................................................................................................................2
Answer 2....................................................................................................................................3
Answer i.................................................................................................................................3
Answer ii................................................................................................................................3
Answer 3....................................................................................................................................4
Answer i.................................................................................................................................4
Answer ii)...............................................................................................................................5
Reference list..............................................................................................................................7

ECONOMIC ASSIGNMENT
Answer 1
Answer i
According to the article it can be said that the rise in the demand for the raw materials
for making the batteries which are used in electric vehicles have been benefitting Australia
for quite a long time. In the article “Australia is the new frontier for battery minerals” it has
been found out that the famous company named Atlas Iron have known to shipped poor
quality iron ore of value A$3.5bn to China in the year 2011 (Leni 2018).the famous mines of
Australia producing cobalt, lithium and also nickel have been shipping a large amount of the
raw materials to the carmakers of china. Demand for lithium has become so huge that it will
be facing shortages in few years. Australian lithium suppliers also state that they will be
providing huge amount of lithium and iron ore for the Chinese battery manufacturers.
Therefore, it can be quite doubtful of the profit which the electric vehicles can make as full
electrification of cars will take a lot of time to develop.
The following article states the various factors which will be affecting the various
supply and demand of the lithium in the world market. the articles which have been given
have been found that demand for lithium usually depends on the rise in the usage of the
lubricant grease, medicines, ceramics, glass and batteries. When the use of the electric
vehicle will rise, demand for the batteries will be rising. The article also states that demand
for lithium will go up in few years. Lithium is usually produced by some of the major players
who are SQM, FMC Corp, Albemarle and also the producers of china. The lithium supply is
therefore said to be mainly dependent on these major players. It is also known that Australia
is ranked first in producing lithium.