Good News & Bad News, page-5092

• COP26 targets require 7Mt of lithium, 5Mt nickel sulphate each year by 2040: Benchmark
• Cheaper lithium iron phosphate batteries are taking the EV world by storm

Our High Voltage column wraps all the news driving ASX stocks with exposure to lithium, cobalt, graphite, nickel, rare earths, and vanadium.

A declaration at the Glasgow climate conference that seeks to phase out sales of petrol and diesel vehicles by 2040 would mean a +3000% increase in annual electric vehicle battery demand and a substantial increase in raw material requirements, according to Benchmark Mineral Intelligence analysis.

That’s going to be extremely difficult, the pricing agency says.

Benchmark estimates that if all cars and vans sold in 2040 were electric it would represent almost 8,400 GWh of lithium-ion battery demand.

In reality, this target will be difficult to meet, with Benchmark already forecasting 6,200 GWh of battery demand from the entire electric vehicle market in 2040.

This target would require over 7 million tonnes of lithium (LCE) annually, which is 17 times more than lithium chemical production in 2021.

It would also require over 5 million tonnes of nickel sulphate, which Benchmark’s Nickel Forecast shows is 19 times more than nickel sulphate production in 2021.

At the moment there is insufficient investment into raw material supply to meet battery demand in 2030 let alone 2040, Simon Moores, CEO of Benchmark Mineral Intelligence says. While building a battery cell production facility can take two years, it takes a minimum of five years to bring on a new lithium mine.

“Right now, lithium demand is growing at three times the speed of lithium supply,” Moores says.

“That’s a big problem that needs to be solved.”

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