Dynamic interactions among new energy metals and price adjustment strategies: A cross-industry chain perspective

Xiaotian Sun, Wei Fang, Xiangyun Gao, Haizhong An, Jingjian Si and Hongyu Wei

Energy, 2024, vol. 303, issue C

Abstract: Lithium, Cobalt, Nickel are the most important new energy metals for energy transition. Their rapid increasing demand drives significant prices fluctuations, often causing simultaneous extensive price spikes in several products among their industry chains, reflecting their interaction nature. This paper first reconstructs products price interaction network among the Lithium–Cobalt–Nickel cross-industry chains to analyze their dynamic interactions. By applying network structural control theory, we then simulate three price reduction scenarios under high price volatility. Product price adjustment difficulties are quantified and distinct adjustment patterns are identified. Our results demonstrate substantial intra-chain and cross-chain dynamic interactions among products, particularly within the nickel chain. Products like the midstream product electrolytic nickel, downstream products Nickel Plate and Nickel exhibit intense interactions with others. Adjusting the prices of 17 key products proves effective in stabilizing the entire system. Electrolytic cobalt and lithium cobaltate always require significant adjustment efforts for most products during high-levels, expect for the nickel ore and some products in lithium chain where they are not critical. Lithium cobaltate always follows a U-shape adjustment pattern, while electrolytic cobalt follows a ∩-shape pattern. When the entire nickel industry chain experiences sharp price increases, the largest adjustment efforts are required to turn down prices.

Keywords: New energy metals; Lithium-cobalt-nickel industry chain; Price dynamic interactions; Network structure control (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:303:y:2024:i:c:s0360544224016967

DOI: 10.1016/j.energy.2024.131923

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