Global lithium prices will continue to grow during next several years
Global prices for lithium will continue to grow during the next several years, that will be mainly due to the possible introduction of a ban on the use of diesel fuel in cities and the possible end of the era of the internal combustion engine, leading global analysts in the field of lithium predict.
This is reflected by the current statistics, which shows since the beginning of the current year global lithium prices have almost doubled, while analysts predict the growth will continue at the beginning of next year.
The ever growing prices have resulted in the growth of shares of multinationals, specializing on lithium mining. For example, record profits are currently posted by the US Albemarle Corporation, the Australian Orocobre, Galaxy Resources Limited (ASX: GXY) and some other majors.
Analysts predict further growth in prices will stimulate more active development of some major lithium mines in the coming years. For instance, this may affect the Salar de Uyuni mine in Bolivia and some Russian mines. According to global experts in the field of mining, in the era of electromobiles, lithium could become a “new gasoline”.
The majority of experts predict significant acceleration of the development of global lithium mines in 2019. Until then, a shortage of the metal may arise from time to time.
Bright future prospects of the global lithium industry attracts investments to the sector, while many global investors considers lithium enterprises as the best way for their capital increase, hoping the demand for the metal will continue to grow in the coming years.
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Further growth of demand will be triggered by the ongoing boom of electric vehicles, that will be mostly observed in the US, China and France. In addition, the demand for electric cars will be also growing in such large emerging nations as Russia and India, however at slower pace.
At the same global lithium demand may be even higher under certain circumstances. For example, analysts of HSH-Nordbank predict Tesla alone wants to produce 500,000 electric vehicles annually by 2020, then lithium consumption only for these needs will reach 24,000 tonnes per year. This is almost half of last year’s global lithium production, which amounted to 40,000 tonnes.
“By 2025 global demand for lithium may reach 500,000 tonnes per year,” the bank predicted. Electric cars will remain the major driver of such a demand.
Eugene Gerden is an international free-lance writer, based in St. Petersburg, who specializes on writing in the field of mining, metals and rare earth metals. ... <Read more about Eugene Gerden>