• Connect with us
    • Information
      • About Us
      • Contact Us
      • Careers
      • Partnerships
      • Advertise With Us
      • Authors
      • Browse Topics
      • Events
      • Disclaimer
      • Privacy Policy
    • Australia
      North America
      World
    Login
    Investing News NetworkYour trusted source for investing success
    • North America
      Australia
      World
    • My INN
    Videos
    Companies
    Press Releases
    Private Placements
    SUBSCRIBE
    • Reports & Guides
      • Market Outlook Reports
      • Investing Guides
    • Button
    Resource
    • Precious Metals
    • Battery Metals
    • Base Metals
    • Energy
    • Critical Metals
    Tech
    Life Science
    Lithium Market
    Lithium News
    Lithium Stocks
    • Lithium Market
    • Lithium News
    • Lithium Stocks
    1. Home>
    2. ResourceBattery MetalsLithium Investing>
    Loading...
    0

    Lithium Demand to Keep "Ballooning" Beyond Expectations

    Priscila Barrera
    Dec. 06, 2022 01:50PM PST

    As the world continues to transition to electric vehicles, demand for lithium is expected to keep going up.

    lithium battery lying over many other batteries
    JLStock / Shutterstock

    Lithium demand is showing no signs of slowing down, supporting the high price levels seen in the past year. And as electric vehicles continue to hit the roads, the need for lithium will only continue to grow.

    Forecasts show that lithium demand could hit anywhere between 3 million and 5 million tonnes by 2030, Anthony Tse of investment firm Franklin Templeton said during a panel discussion at this year’s Benchmark Week.

    “If you actually do the math and extrapolate, what we're going to need is to grow real supply — not pipeline, but real supply needs to come into the market of somewhere between 150,000 to 200,000 tonnes every single year. That's bigger than the whole market was 12 years ago,” he shared with the audience that gathered in person in Los Angeles for the first time in three years.


    While there is visibility on the lithium projects expected to come online by 2025, after that the picture turns blurry.

    “The challenge really is beyond 2025, what does the supply pipeline actually look like?” said Tse, the former CEO of Galaxy Resources, which merged with Orocobre in 2021 to become top lithium producer Allkem (ASX:AKE,OTC Pink:OROCF).

    “Because unfortunately, over the past 10 years, I would have to say, probably as an industry, there has been underinvestment in the exploration stage," he added.

    Rho Motion's Adam Panayi, who was also part of the panel discussion around lithium demand and cathode evolution, added that another key thing to bear in mind is how demand is configured, as different cathodes have different chemistries.

    “Lithium is a given in virtually every chemistry as a component, but even within that, if you're looking at different cathode chemistries along that chain, the key material changes ⁠— it could be carbonate, hydroxide ⁠— and the intensity also changes,” he told the audience at the conference.

    When asked about the evolution of cathodes, Tse talked about the “fit-for-purpose” concept. “It's been happening in cathodes for the past 30 years … because if there wasn’t an evolution of chemistries, we would all be driving around in cars that contained a lithium cobalt oxide battery, because that was the first-generation commercial lithium battery,” he said.

    The development of cathodes is not just about performance, energy density and fast charging ⁠— cost has become an important aspect. “Especially in the last couple of years, where we've seen inflationary pressures across many industries, including the battery industry,” Tse said. “And increasingly, apart from cost, safety is becoming a much, much higher issue.”

    For Ashish Patki of Livent (NYSE:LTHM), which operates its lithium business in Argentina's Salar del Hombre Muerto, one of the best ways to bring back what’s happening in the supply chain and put it in terms of lithium demand is to look at cathode output.

    “China is the center of cathode output … this year's lithium-iron-phosphate output in China is easily on track to cross 1 million tonnes compared to about 400,000 tonnes last year,” he said. “And nickel-cobalt-manganese 811 in terms of output in China is number two position, and what we are seeing is 100 percent growth over the years as well.”

    Patki estimates that for 2023 the industry will need 1 million tonnes of lithium carbonate equivalent.

    “Again, whether there's supply that will be able to meet that, that's the big question,” he said. “(Furthermore), many of us in the industry, we tend to understate, underestimate the brand of applications of lithium-ion batteries.”

    For the business development director at Livent, if supply cannot catch up, demand will be deferred, not destroyed.

    “If there is not enough supply available of raw materials, it will just carry over into the next year,” he said. “It will just keep ballooning even more than anybody would think.”

    Don't forget to follow us @INN_Resource for real-time updates!

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

    From Your Site Articles
    • 5 Things Lithium Investors Can Expect from Now Until 2025 ›
    • Lithium Market Forecast: Top Trends That Will Affect Lithium in 2023 ›
    • Top 9 Lithium Stocks (Updated December 2022) ›
    • Lithium Market 2022 Year-End Review ›
    • 8 Top Lithium-producing Countries ›
    Related Articles Around the Web
    • Lithium Market Size, Growth, Outlook | Forecast Analysis [2028] ›
    https://www.linkedin.com/in/priscilabarrera/
    pbarrera@investingnews.com
    The Conversation (0)

    Go Deeper

    AI Powered
    Lithium periodic symbol and electric vehicle.

    7 Biggest Lithium-mining Companies in 2025

    Digital globe and battery with lightning icon on dark background.

    Lithium Market Update: Q2 2025 in Review

    Priscila Barrera

    Priscila Barrera

    Managing Editor, Resource

    Priscila is originally from Buenos Aires, Argentina, where she earned a BA in Communications at Universidad de San Andres. She moved to Vancouver for the first time in 2010 and fell in love with the city. A few years after she went to London, UK, to study a MA in Journalism at Kingston University and came back in 2016. She enjoys reading, drinking coffee and travelling.

    Latest News

    Seymour Concentrate Produces Battery Grade Lithium Hydroxide

    Lammerlaw NZ Maiden Drilling Intersects Gold Mineralisation

    SAGA Metals Confirms a 3 km Continuous Magnetic Anomaly in the Trapper Zone at the 100% Owned Radar Titanium Property in Labrador, Canada & Provides Corporate Update

    Final At-The-Market Raise for 2025

    Vertex Minerals Limited Quarterly Activities Report

    More News

    Outlook Reports

    Resource
    • Precious Metals
      • Gold
      • Silver
    • Battery Metals
      • Lithium
      • Cobalt
      • Graphite
    • Energy
      • Uranium
      • Oil and Gas
    • Base Metals
      • Copper
      • Nickel
      • Zinc
    • Critical Metals
      • Rare Earths
    • Industrial Metals
    • Agriculture
    Tech
      • Artificial Intelligence
      • Cybersecurity
      • Gaming
      • Cleantech
      • Emerging Tech
    Life Science
      • Biotech
      • Cannabis
      • Psychedelics
      • Pharmaceuticals

    Featured Lithium Investing Stocks

    International Lithium Corp.

    ILC:CA

    Metals Australia

    MLS:AU

    Lithium Africa

    Atlantic Lithium

    A11:AU

    Galan Lithium

    GLN:AU

    Jindalee Lithium

    JLL:AU
    More featured stocks

    Browse Companies

    Resource
    • Precious Metals
    • Battery Metals
    • Energy
    • Base Metals
    • Critical Metals
    Tech
    Life Science
    MARKETS
    COMMODITIES
    CURRENCIES
    ×
    Priscila Barrera
    Priscila Barrera

    Managing Editor, Resource

    Priscila is originally from Buenos Aires, Argentina, where she earned a BA in Communications at Universidad de San Andres. She moved to Vancouver for the first time in 2010 and fell in love with the city. A few years after she went to London, UK, to study a MA in Journalism at Kingston University and came back in 2016. She enjoys reading, drinking coffee and travelling.

    Full Bio

    Follow

    Learn about our editorial policies.