Lithium Markets Rise in Preparation for EV Battery Production | 5 Key Players to Watch for Lithium in 2022
The other day, a public transit company in Montpellier, France, made the decision to go “all-electric” after concluding that hydrogen would cost up to six times more than operating on battery power. To do so, they’re canceling a 51-bus contract already in motion.
Many companies are making the switch from hydrogen and gas to electric for mobility. And, that’s not to say hydrogen isn’t a viable option because there are indeed many perks to using hydrogen over electric, as well as the combination of both under certain applications.
But as EV adoption continues to grow, so does the need for lithium. And unfortunately, some experts are projecting a slowdown in EV production without the available lithium necessary to create each battery going into 2030 and in some situations, global EV production will be delayed until at least 2023.
As lithium production continues to accelerate, there’s a major risk in store for companies whose demand outweighs supply availability. Not only this, but some of the more prominent manufacturers like Ford, who expects to produce no less than 150,000 electric trucks a year, and its battery partner, SK Innovations — or General Motors and its battery manufacturer, Ultium Cells LLC — may themselves start hoarding lithium to ensure there’s an adequate supply of lithium, as demand increases — ultimately leaving the “little guy” in the dust.
In a recent report by market analyst Fitch Solutions, global lithium output is expected to rise by about 600,000 tonnes between now and 2025 — a sharp contrast against the 240,000 tonnes produced between 2016 and 2020. The company also expects to see an increase of 290,000 tonnes between 2026 and 2030 — conservatively speaking and not factoring in the global shift towards EV by government officials across the world.
While the research firm expects production numbers in Australia to triple by 2030 and in Brazil by five times over, it only expects places like China, Argentina and Chile to double during this time. They also expect to see a significant jump in production through emerging sources in developed countries like the U.S., Canada, Germany, and some other countries in Europe and…