VIDEO - William Adams: LME-Fastmarkets Deal Will Smooth Lithium Supply Chain

Battery Metals
Lithium Investing

Speaking with INN at the Lithium Supply & Markets Conference, Adams also talked about the lithium price, EV uptake and battery technology.

Interview conducted by Priscila Barrera; article text by Scott Tibballs.

According to William Adams, head of base metals and battery research at Fastmarkets, a recent deal between Fastmarkets and the London Metal Exchange (LME) to provide a reference price for a new lithium contract will help smooth the flow of lithium down the supply chain.

Adams was speaking with the Investing News Network at the Lithium Supply & Markets Conference in Santiago, Chile, where the announcement was the talk of the town.

“It is going to be a challenge because lithium is a chemical and not a commodity, although there are aspects of it which are a commodity — I think there will be the opportunity to find a benchmark or a proxy price, and then the different types of lithium will be traded at a premium or a discount to that,” said Adams on the sidelines of the show.

“But I think it will take a lot of consultation with the industry and with us and the LME. That will take some time to do.”

The key driver for the need for a lithium contract, said Adams, is electric vehicles (EVs).

“By the time EVs become mainstream, the demand growth is going to be so strong that we’re going to need an awful lot of new production coming on, and anything that can help facilitate that I think is going to be a big positive.”

He said that at Fastmarkets, EV momentum is expected to be very strong, with EV uptake projected to be on average 35 percent year-on-year from now to 2025.

“Last year EV sales increased by 64 percent,” added Adams, “so well above that.”

In the wide-ranging interview, Adams also commented on the rush on securing lithium supply around the world in response to China and Asia’s current domination of that space, and the price difference between hydroxide and carbonate lithium.

For more insights into the lithium space and price, watch the full interview above. You can also click here to watch our full Lithium Supply & Markets Conference playlist on YouTube.

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Securities Disclosure: I, Scott Tibballs, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.

The Conversation (1)
Alexandra Carolino
Alexandra Carolino
14 Jun, 2019
...And why do not think of a proximity mining? Less environmental impact, less contestation in the community Why are there only mines of great impact? .... and great discord and plenty of time to get licenses (about 10 Years)