Due to increased demand for lithium, this precious metal may become scarce in the world as early as 2025. In this respect he is writing CNBC cited analysts.
According to a report by research firm BMI, the shortage will result from a significant increase in metal consumption in China. It has been announced that the annual increase in Beijing’s lithium demand for electric vehicles only will reach 20.4% year-on-year in 2023-2032. Analysts also stated that metal supply will only increase by 6% over the period under review and will not be able to meet even 30% of demand.
China is the world’s third largest producer of lithium after Australia and Chile. A total of 540 thousand tons of metal was produced in the world in 2021. According to the forecasts of the World Economic Forum, by 2030, global demand will exceed 3 million tons. This will happen due to the active deployment of electric vehicles. S&P Global Commodity Insights forecasts sales of 13.8 million units this year and forecasts that figure to rise to over 30 million by 2030.
Corine Blanchard, Deutsche Bank’s research director for lithium and clean technologies, noted that by the end of 2025, the deficit will be approximately 40-60 thousand tons of lithium carbonate equivalent, but by 2030 this figure will rise to 768 thousand tons. . Susan Zou, VP of Rystad Energy, thinks that metal shortages in 2028 could start to affect global supply chains.
Lithium is the lightest metal in the world. It is used in metallurgy to deoxidize and increase the ductility and strength of alloys. It is used in the manufacture of glasses that provide protection against ultraviolet rays in optics. Additionally, it is used in nuclear energy and nuclear technology to produce tritium, a radioactive isotope of hydrogen. But the lion’s share of lithium goes to the production of lithium-ion batteries.
Formerly India gathered Prohibition of export of lithium, beryllium, niobium and tantalum.