MARKET
Lithium Carbonate Equivalent (LCE) demand by sector has undergone a major transformation in the past 20 years, as the demand for lithium-ion batteries for Electric Vehicles now dominates demand and is forecast to do so well into the future.
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SOURCE: Benchmark Mineral Intelligence – Lithium: The Multi-Billion Dollar Question, webinar, March 2, 2022
Lithium supply/demand balance is forecast to be in severe shortfall that is anticipated to continue growing annually well beyond 2035.
The market is heavily depending upon future production new lithium deposit discoveries to reduce this shortfall. Supply shortages will be harder to mitigate in regional markets as geopolitical pressures will require local lithium sourcing, particularly in the North America and European Union markets. Current lithium supply must increase 6-fold to meet demand in only 7 years’ time.
SOURCE: Benchmark Mineral Intelligence – Lithium: The Multi-Billion Dollar Question, webinar, March 2, 2022
With a 6-fold increase in lithium supply needed by 2035 to meet the growing EV demand for lithium-ion batteries, new lithium mine production is sorely needed.
With 74 new mines and plants needed to meet the forecast demand, lithium explorers and developers with resources and access to existing infrastructure and distribution networks will be in a favourable position to benefit from this explosive demand increase.
SOURCE: Benchmark Mineral Intelligence – Lithium: The Multi-Billion Dollar Question, webinar, March 2, 2022
If you can build it, local battery makers will need it.
Despite the explosive growth EV battery manufacturing capacity planned and the announcement of the construction of several new gigafactory plants in North America and Europe, China will remain the overwhelmingly dominant EV battery producer in 2035. The US Inflation Reduction Act and European legislation aimed at localizing the battery metal supply chains creates demand for regionally-sourced lithium that currently cannot be supplied from within. In 2035, the US and EU are projected to be able to produce 22% and 23% respectively of the lithium needed to manufacture batteries.
SOURCE: Benchmark Mineral Intelligence – Lithium: The Multi-Billion Dollar Question, webinar, March 2, 2022
