Lithium demand could soon outpace supply, leaders warnPublished: 09:32 23 Jun 2023
Industry leaders have warned that Lithium, the element used in medicine and battery products, could soon suffer global shortages if the market fails to bring enough new mines online.
The rise of the EV industry has made lithium among the most in-demand metals, with
Statista data showing a 160% increase in global demand between 2019 and 2023.
But staffing shortages and approval delays are putting the supply chain at risk of being overwhelmed.
Reuters reported that Australia-listed Lake Resources has become the latest lithium company to announce project delays, with its Kachi lithium project in Argentina pushed back by three years.
“You could end up in a crisis situation where the battery companies don't have the security of (lithium) feedstock," Lake Resources’ chairman Stu Crow at this week's Fastmarkets Lithium and Battery Raw Materials conference in Las Vegas.
"There's a disconnect between the panic that we're seeing here, and the frenetic activity of trying to secure supply within the industry," he added.
In 2020, there were 45 lithium mines in operation across the globe, with 11 due to open this year and a further seven in 2024, but experts warn that this rate is not enough to satisfy the pace of demand.
EV sales
increased by 60% in 2022, with the total number of electric vehicles manufactured expected to top 15 million by the end of this year.
Each of these cars requires six kilograms of lithium, comprising around 3.2% of each batteries’
mineral mix.
Albermarle, the world’s largest lithium producer, predicts that demand could outstrip supply by 2030, which could set back the pace of low-emission EV car rollout.
Graphite, another major mineral used in EV battery production, is also facing a global supply shortage.
"Investment has to continue, otherwise there will be more delays to timelines that are already massively long," Tara Berrie of EV maker Rivian told attendees of the Fastmarkets conference.
(20min delay)