Lithium
Why Lithium Demand Is Going To Increase
Unprecedented growth in the lithium markets are forecast due to Battery Energy Storage Systems growing at a rapid pace even outstripped current EV battery demand. Lithium batteries are being introduced to an ever expanding market driven in part by net zero country targets. The current slump in the lithium price is seen as a balanced market price isn’t exhibiting any volatility but a 3% reduction in production in China sent the price soaring. This means the price balance is tilted to sellers in the next five years.
Lithium demand is expected to quadruple over the next decade. To convert the global vehicle market to battery power, lithium supply would need to expand by 30x. Even partial adoption of electric vehicles will require dramatic growth. Grid storage, aerial drones, and scooters are also fast-growing markets with large appetites for lithium.
Lithium is irreplaceable for the high-energy batteries that power portable electronics and electric vehicles. Lithium has a unique position on the periodic table, offering high voltage and high capacity that cannot be replicated by other metals. A select few battery technologies have shown potential to one day replace today’s lithium-ion batteries. These new batteries are based on lithium metal and lithium silicon anodes, which improve performance but also increase lithium usage per kilowatt-hour. Lithium is here to stay.
Lithium is also used to treat bipolar disorder, a medical condition affecting 3 million Americans.
