LITHIUM MARKET
LITHIUM OPPORTUNITY
The demands for a competitive and sustainable battery manufacturing industry have limited substitutes for lithium, a critical gap in the supply chain resulting in a lithium supply deficit of 20% to 55% by 20301,2
EVs USE ~6x MORE MINERALS THAN CONVENTIONAL VEHICLES3
Lithium Market Supply / Demand Balance4 (Mt LCE)
Sources:
1. McKinsey & Company, “Resilient, sustainable, and circular”, January 16, 2023
2. Based on Albemarle’s investor presentation, “2023 Strategic Update”, January 23, 2023
3. IEA, “The Role of Critical Minerals in Clean Energy Transitions”, May 2021
4. Benchmark Mineral Intelligence, Lithium Forecast, Q4 2022
LITHIUM DEMAND
Lithium Expected to grow by 42x by 2040, a CAGR of 33% for the next decade
Rapid scaling of EV production committed by top global automakers with $billions committed to building large scale manufacturing facilities (Toyota, Ford, Tesla, LG Energy Solution)
Sources:
Based on data provided by IEA , “The Role of Critical Minerals in Clean Energy Transitions”, May 2021; if governments are to achieve emissions reductions targeted under the Paris Agreement, the IEA estimates that the increase in demand for lithium will be 41.8 times the demand from 2020
https://www.alliedmarketresearch.com/electric-vehicle-market
Growth of selected minerals, 2040 relative to 2020
Sustainable Development Scenario (SDS) – Index (2020=1)
Based on data provided by IEA , “The Role of Critical Minerals in Clean Energy Transitions”, May 2021; if governments are to achieve emissions reductions targeted under the Paris Agreement, the IEA estimates that the increase in demand for lithium will be 41.8 times the demand from 2020
battery plant market
Battery Plants Expected to Come Online in North America and Europe
Expected Global Lithium Demand of: 2.7 Mt LCE in 20301
Expected Global EV Battery Demand of: 3.2 TWh in 2030 (~2.5M – 2.9Mt LCE)2
- operational plant
- project in process
- operational pilot line or in progress
Source: IEA
1. Based on IEA’s “The Role of Critical Minerals in Clean Energy Transitions”, May 2021
2. Based on IEA’s “Global EV Outlook 2022”, May 2022. Assuming 0.8 – 0.9kg LCE/kWh