https://en.sputniknews.africa/20230831/global-shortage-of-lithium-possible-in-2025-1061765019.html
Global Shortage of Lithium Possible in 2025
Global Shortage of Lithium Possible in 2025
Sputnik Africa
Over the past two years, lithium, a crucial component of batteries used in numerous modern devices, has increased in price by around 1,100%. Against this... 31.08.2023, Sputnik Africa
2023-08-31T15:10+0200
2023-08-31T15:10+0200
2023-08-31T16:27+0200
lithium
international
world economic forum (wef)
namibia
zimbabwe
china
economy
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With demand for lithium on the rise, especially in China, a global shortage of this highly prized metal could occur, warns Fitch Solutions' BMI research unit.The global supply of lithium, a material used to make batteries for consumer electronics and electric vehicles, is expected to fall short of demand as early as 2025, media report citing BMI, a research unit of Fitch Solutions.A lithium supply deficit is thus expected by 2025. In a recent report, BMI attributes this deficit in large part to the fact that Chinese demand for lithium exceeds its supply.Meanwhile, the supply of lithium in the developing economy would only increase by 6% over the same period, this rate not even being able to satisfy a third of the forecast demand.China is the world's third-largest producer of lithium, an essential element in the production of batteries for electric vehicles.Growing demandGlobal lithium production is estimated to have totaled 540,000 metric tons in 2021, and according to the World Economic Forum, global demand is expected to rise to more than 3 million tons by 2030.Global electric car sales are expected to reach 13.8 million this year, but will then soar to more than 30 million units by 2030, according to forecasts from S&P Global Commodity Insights.The expert predicts "modest deficit" of around 40,000-60,000 tons of lithium carbonate equivalent by end of 2025, but expects wider deficit of 768,000 tons by end 2030.According to energy research firm Rystad Energy, hundreds of lithium projects are currently being explored, but the geological complexity and lengthy permitting process still pose challenges.Lithium-rich African countries, such as Zimbabwe and Namibia, are poised to benefit from increased global demand. Countries like the DRC or Zambia have also decided to invest in the production of electric batteries.
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lithium, international, world economic forum (wef), namibia, zimbabwe, china, economy
lithium, international, world economic forum (wef), namibia, zimbabwe, china, economy
Global Shortage of Lithium Possible in 2025
15:10 31.08.2023 (Updated: 16:27 31.08.2023) Samantha Arias
Producer / Podcast host
Over the past two years, lithium, a crucial component of batteries used in numerous modern devices, has increased in price by around 1,100%. Against this backdrop, lithium-rich African countries have embarked on developing new mines and creating their own lithium refining and processing industries.
With demand for lithium on the rise, especially in China, a global shortage of this highly prized metal could occur, warns Fitch Solutions' BMI research unit.
The global supply of lithium, a material used to make batteries for consumer electronics and electric vehicles, is expected to fall short of demand as early as 2025, media report citing BMI, a research unit of Fitch Solutions.
A lithium supply deficit is thus expected by 2025. In a recent report, BMI attributes this deficit in large part to the fact that
Chinese demand for lithium exceeds its supply.
"We expect an average of 20.4% year-on-year annual growth for China’s lithium demand for EVs [electric vehicles] alone over 2023-2032," the report stated.
Meanwhile, the
supply of lithium in the developing economy would only increase by 6% over the same period, this rate not even being able to satisfy a third of the forecast demand.
China is the world's third-largest producer of lithium, an essential element in the production of batteries for electric vehicles.
Global lithium production is estimated to have totaled 540,000 metric tons in 2021, and according to the World Economic Forum, global demand is expected to rise to more than 3 million tons by 2030.
Global electric car sales are expected to reach 13.8 million this year, but will then soar to more than 30 million units by 2030, according to forecasts from S&P Global Commodity Insights.
"We do fundamentally believe in a shortage for the lithium industry. We forecast supply growth of course, but demand is set to grow at a much faster pace," said Corinne Blanchard, Deutsche Bank’s director of lithium and clean tech equity research.
The expert predicts "modest deficit" of around 40,000-60,000 tons of lithium carbonate equivalent by end of 2025, but expects wider deficit of 768,000 tons by end 2030.
According to energy research firm Rystad Energy, hundreds of lithium projects are currently being explored, but the geological complexity and lengthy permitting process still pose challenges.
Lithium-rich African countries, such as Zimbabwe and
Namibia, are poised to benefit from increased global demand. Countries like the DRC or Zambia have also decided to invest in the production of electric batteries.
