CHINA WILL BE VERY MUCH SHORT IN LITHIUM, page-276

The BESS thing is coming like a tsunami atm.

The lithium demand for BESS is going to be huge. Ken also explains it on the video. Especially in the US.

The US is the centre of internet world and they have huge amount of data centres, now the AI data centres are all adding on top it.

And those new AI computer systems need incredible amount of power. There is no way out for these systems to be feed only by a grid power. They can't pause the data flow, they can't stop..! They can't rely on the grid power. So they have to have their own power supply backup.

They all have to have a large BESS connected.

It's not only happening in the US indeed. It's not limited only to data centres either. It's happening in Europe, in China, in everywhere, even at the third world countries. And it's happening in every sector as well.

Utility companies are now closing their coal power plants and setting up the BESS power grids fed by the renewables (wind and solar). Ken explains it well. They are not doing it because they are greens! They do it because it's cheaper to do so. The governments just need to kick start it as it is happening in Australia.

Lithium demand will be around 8mt LCE in 2035
(Low case - 5 times more than the demand today)

Howard Klein asked to Ken Hoffman;
"What you think you know lithium demand will be i think by 2035"

Ken Hoffman said;
"You're probably talking in the 6 to 10 million metric ton range. Yeah I know that sounds high but again I'm thinking every number we ever had at McKenzie every time we came out with another forecast 6 months later we always raised our numbers significantly in lithium demand. I think that will continue. I think what people are getting wrong is not only the number of vehicles but the amount of lithium for vehicles and also again other applications particularly stationary storage"

For 2030, my estimation is at least 4.0mt. You can double it for 2035 and get 8mt. That's the mid point of Ken's forecast.

And it's correct that all lithium, battery and EV forecast have been wrong so far. For example when we were in 2019 the global EV sales were forecasted to be around 10m for 2025. But it is now going to be 22m EVs in 2025. More than 100% wrong!