The global lithium story is red hot, and showing no signs of cooling.
For one, according to Bloomberg, “Global lithium consumption is projected to grow fivefold by end of this decade, according to BloombergNEF. Tightening supplies are sparking a wave of deal making among lithium miners, with Ganfeng and other producers involved in a flurry of acquisitions in recent months.”
In addition, General Motors, for example, wants to increase its spending on EVs to $435 billion through 2035. Ford is targeting 40% EV sales by 2030. Volkswagen is investing billions in EVs. Countries all around the world want millions of them on the roads over the next few years.
Unfortunately, none of it may happen – without a good source of lithium.
At the moment, according to S&P Global:
“There is the quadrupling of demand in just five years and probably a growth of six or seven times over 10 years. So, clearly the industry is not prepared today for that level of demand – the amount of incremental capacity that the industry needs over the next 10 years is at least 1.5 million mt and in terms of capital investment, will probably require $45 billion-$50 billion of investment into new projects or expansions of existing operations.”