General Discussion, page-2087

Figure 1. Lithium Supply Unlikely to Keep Up with Demand²

Source: “Global Critical Minerals Outlook 2024,” International Energy Agency (IEA), May 2024. Demand data shown for Net Zero Emissions Scenario. Supply is from existing and announced projects.

According to Benchmark Mineral Intelligence (BMI), the lithium supply shortage is forecasted to begin as soon as 2025.

There are currently only 101 lithium mines in the world, and even as more mines and exploration projects come online, the added supply may likely not be able to keep up with demand. China alone is expected to drive a 20% yearly increase over the next decade.³ This is especially evident given that the current unsustainably low lithium prices have led to project curtailments and driven some miners to reduce capital expenditures and investments in future supply.

We believe that the lithium price may have bottomed, and higher lithium prices may be necessary to incentivize the required future production.
https://sprott.com/insights/lithium-short-term-opportunities-for-a-long-term-trend/