About Lithium

Lithium is a special element – it was the only metal produced in the Big Bang that created the universe 13.7 billion years ago. 

Lithium Uses

Lithium is the third element in the periodic table, containing three protons in its atomic nucleus. A highly reactive alkali metal, it has excellent heat and electrical conductivity. These characteristics make it extremely useful for the manufacturing of lithium-ion batteries for electronics and electric cars. Its superior high energy density, durability, and thermal resistance is ideal for its use in the modern world. 

Over 50% of mined lithium is used for battery power.

Lithium Supply

Brine lakes, known as salars, have the highest volume of minable lithium. These lithium mines are prevalent in six world countries - Chile, China and Argentina (all salars); Australia, Zimbabwe and Portugal (hard rock). In 2022, over 130,000 tonnes of lithium carbonate output were produced.

“We do fundamentally believe in a shortage for the lithium industry. We forecast supply growth of course, but demand is set to grow at a much

faster pace,” said Corinne Blanchard, Deutsche Bank’s director of lithium and clean tech equity research.

By the end of 2025, Blanchard sees a “modest deficit” of around 40,000 to 60,000 tonnes of lithium carbonate equivalent, but forecasts a wider deficit

amounting to 768,000 tonnes by the end of 2030.

Electric vehicles will drive a lithium supply crunch- the end of the ICE age is in the near future. The UBS predicted by 2025 over 20% of the auto market will be electric vehicles, and over 50% by 2030.

Lithium Market

The lithium market was a $6.8 billion market in 2021, with a projected $8.24 billion worth in 2027. The growth of companies producing sustainable alternatives for transportation is driven by the adoption of the electric vehicle. Lithium batteries now account for the largest share of lithium use.

The current global reserve of lithium is estimated at 73 million tonnes.

Lithium Demand

Lithium is one of the most in-demand commodities across the globe given its immense use and benefits, especially in the battery market. According to a report by Deloitte, analysts have a consensus that the demand for lithium will double or even triple by 2030.

It is predicted the global demand will reach over 1.79 million metric tonnes by 2030. Lithium is critical to meet the needs of an ever evolving renewable energy source.