"In a move that could have significance for Australia, many canny US investors are said to be trying to make money from the exploding popularity of iPads and increasing sales of hybrid cars by investing in producers of lithium for batteries.
Australia is the world's top producer of lithium, ahead of Chile, Argentina and China. The country has eight ASX-listed companies, including the No 1 producer.
A Bloomberg report says prices for the conductive metal have tripled since 2000 in a market now worth US$1 billion a year as uses expand in vehicles, ceramics, electronics and lubricants. Apple and Toyota, maker of the Prius hybrid petrol/battery car, have few alternatives as they pursue higher performance and mobility.
With worldwide shipments of tablets expected to hit 222 million by 2016 – an IDC forecast – and electric/hybrid car sales also expected to expand dramatically, leading analyst firm Dahlman Rose has forecast lithium demand will double by 2020.
Talison, a Perth-based company that is the world's No 1 producer with market share of about 32 percent, is looking to ride the boom. It recently completed an expansion at its Greenbushes mine in WA that has allowed it to double production capacity.
Peter Oliver, CEO of Talison, told Bloomberg the company expects "anywhere between a doubling and tripling of demand", depending on how fast electric vehicles catch on.
Lithium-ion batteries – as used in tablets and other mobile devices – are currently the biggest application for the material, accounting for about 22 percent of use."
Forget Talison, Galaxy is where it's at. Good we are getting some more media coverage. Lithium demand v supply, its really a no brainer until an alternative is found. Cap. raising price will be surpassed in a few weeks imho. DYOR
GXY Price at posting:
20.5¢ Sentiment: Buy Disclosure: Held
