Demand Will Continue to Rise.

The demand for lithium is expected to increase due to the growing demand for electric vehicles, renewable energy storage systems, portable electronics, and industrial applications.

The McKinsey Lithium Article forecasted that over the next decade, continued growth of Lithium ion (Li-ion) batteries at an annual compound rate of approximately 30%. By 2030, EVs, along with energy-storage systems, e-bikes, electrification of tools, and other battery-intensive applications, could account for 4,000 to 4,500 gigawatt-hours (“GWh”) of Li-ion demand.

EV Market Driving Demand for Lithium

Demand for lithium-based power will rise rapidly with the growth of the EV market.

Forecasts by Tesla suggest the company will need approximately 1,000 kilotons of LCE per year by 2030, or 16 times its 2022 needs, and 30% more than the world currently produces. Overall, the global passenger EV market, which relies on lithium-based batteries, is expected to grow annually by 26% through 2030.

Source: market