Tech metals supply lagging demand as electric car production increases.
The burgeoning lithium-ion battery market, buoyed by increased demand for and production of electric vehicles (EVs), among other end-uses, is making it increasingly difficult for producers of tech metals such as lithium and cobalt to keep pace with the demand from technology developers.
Global demand for lithium continues to grow as a result of the manufacture of lithium-ion batteries used to power such devices and, increasingly, EVs predominate in driving demand for the mineral, with lithium cathode equivalent (LCE) demand increasing from about 160 000 t in 2015 to 180 000 t in 2016.
According to data from the US Geological Survey (USGS), lithium global end-use markets are estimated at 35% for battery production, 32% for ceramics and glass products, 9% for lubricating grease, 5% for both air treatment and the production of continuous cast mould flux powders, 4% for polymer production, 1% for aluminium production and 9% for other uses.
BMI Research commodities analyst Molly Shutt and Benchmark Mineral Intelligence MD Simon Moores highlight that demand for lithium continues to be bolstered by the lithium-ion battery and EV markets.
Shutt points out that, globally, sales of alternatively fuelled passenger vehicle are expected to grow at an average yearly rate of 23.5%, accounting for about 22.1% of all new-vehicle sales by 2025.
“We believe that the majority of these sales will be concentrated in developed markets, in addition to China, where significant air pollution and traffic congestion will drive the political will to roll out aggressive subsidy schemes,” she says.
This story is from the Mining Weekly 10 March 2017 edition of Mining Weekly.
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This story is from the Mining Weekly 10 March 2017 edition of Mining Weekly.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
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