High lithium and cobalt prices will slow electricity vehicle (EV) uptake over the next few years, according to HSBC analysts.

HSBC says delayed or cancelled lithium mining projects – alongside “robust” battery demand – means lithium supply will remain “reasonably tight”, according to Bloomberg.

HSBC now says 776,000 tonnes per year of lithium will be required by its 2025 — a 88 percent increase from its last estimate more than a year ago.

HSBC had revised down its market share projections for fully electric cars from 9.4 per cent, compared with an earlier estimate of 10.5 per cent by 2025.

They also doubled their forecast for plug-in hybrid EVs (or PHEVs) from 2.4 per cent to 5.5 per cent of the market by 2025.

A PHEV is a type of hybrid electric vehicle that combines a gasoline or diesel engine with an electric motor and battery.

“High lithium and cobalt prices – but also limited supply and lower demand for pure EVs -– now favour more plug-in hybrids in the short to medium term vs. our previous expectation,” HSBC analysts say.

But other analysts say the decline of PHEV vehicles has already started.

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