Lithium carbonate crisis: demand for lithium has increased due to increased production of electric vehicles
Increased demand for lithium: Lithium-ion batteries are used in electric vehicles. The demand for lithium has increased due to the growth of electric vehicles. That is, as its demand increases, the demand for lithium will also increase.
Lithium carbonate price: Currently, the demand for electric vehicles is increasing. Electric scooters, electric bicycles, cars are hitting the market one after another. With rising gas prices, people are turning to electric cars. Lithium-ion batteries are used in electric vehicles. The demand for lithium has increased due to the growth of electric vehicles. That is, as its demand increases, the demand for lithium will also increase. Currently, there is a lithium crisis all over the world. According to Reuters, the Serbian government recently revoked the license for a major lithium project held by British-Australian mining company Rio Tinto plc. According to data from the Australian Department of Industry, the US Geological Survey, company reports and Credit Suisse reports, this is where most of the lithium is supplied.
Lithium is extracted from salt mines. This is why Argentina, Chile and China produce from salt lakes. However, to compete with China, Western countries are rushing to bring in new mines. Currently, most lithium production comes from hard rock or brine mines. Hard rock mines located in Australia. It is the largest lithium-producing mine in the world.
According to the Australian Department of Industry, the total worldwide production of lithium carbonate in December 2021 was 485,000 tonnes. It increased to 615,000 tons in 2022 and 821,000 tons in 2023. The only reason for this is the battery used for electric vehicles. Which is made up of lithium. Lithium production is expected to increase to 736,000 tons in 2023. Only then will its demand be high. Strong demand could push lithium prices up. Lithium carbonate prices have risen sharply over the past year due to increased demand from Chinese battery manufacturers. Lithium prices will increase by $20,000 (about Rs. 15 lakh in Indian currency) per ton in June this year.
Let’s take a look at the largest lithium mines in the world:
Greenbush (Western Australia). It can produce up to 1.34 million tons of lithium per year.
Pilgangur (Western Australia). It is expected to produce 400,000 to 450,000 tonnes by June 2022.
Mount Catlin (Western Australia). In 2021, the company mined 230,065 tonnes of spodumene concentrate.
Mibra (Brazil). 90,000 tonnes of spodumene are produced there each year.
Mound Marion (Western Australia). It is expected to produce 450,000 to 475,000 tons of spodumene by June 2022.
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