This week, Lake Resources turned the newest lithium firm to announce a mission delay, pushing again first manufacturing from its Kachi lithium mission in Argentina by three years. It cited energy provide and different logistics considerations.
Albemarle, the world’s largest lithium producer, is rising quickly throughout the Americas, Asia and Australia. Still, it expects international lithium demand to exceed provide by 500,000 metric tons in 2030. Various consultancies and different producers have barely completely different projections, however all warn of a looming scarcity.
“It’s a big challenge,” mentioned Eric Norris, head of Albemarle’s lithium enterprise.
There had been 45 lithium mines working on the planet final yr, with 11 anticipated to open this yr and 7 subsequent yr, based on Fastmarkets. That tempo is much beneath what consultants say is required to make sure satisfactory international provide.
Those progress projections assume a best-case state of affairs, at the same time as mining firms face issue hiring technical expertise, rising prices and delay instances for essential tools.
Even if extra lithium mines are constructed, there should not sufficient amenities to supply specialised forms of the metallic for batteries. Automakers could also be pressured to just accept lower-quality lithium, which decreases an EV battery’s vary, executives mentioned.
“There’s a big difference between lithium that comes out of the ground and lithium that goes into a battery,” mentioned Sarah Maryssael of Livent, which provides Tesla Inc. and is ready to mix with rival Allkem later this yr.
NO LONGER A NICHE EVENT
Once a distinct segment occasion attended by trade die-hards, the Fastmarkets convention has grown quickly alongside breakneck lithium demand. Roughly 1,100 attended this yr, practically triple 2019 ranges and up 68 per cent from final yr.
Exxon Mobil and different oil firms despatched contingents as a part of their foray into the battery metals sector.
Banking giants JPMorgan, Goldman Sachs, BMO and others additionally attended, their curiosity fueled by an anticipated wave of lithium takeover offers and rising demand for hedging and different monetary devices.
“Our strategic investment and M&A pipeline is extraordinarily strong,” mentioned Rahim Bapoo, managing director of BMO’s important minerals apply.
In one instance of the rampant hunt for lithium, Mitsui is on the verge of signing a US$65 million take care of Atlas Lithium to ensure provide from a Brazilian mine mission that Atlas hasn’t completed designing.
“Investment has to continue, otherwise there will be more delays to (lithium) timelines that are already massively long,” mentioned Tara Berrie of EV maker Rivian Automotive Inc.
Source: canada.autonews.com