According to new forecasts, the lithium market is expected to double by 2030 as soaring EV demand accelerates.
Is it finally happening? Did we reach the threshold for mass EV adoption? Several legacy automakers are reporting staggering growth in EV sales. In fact, some are having a hard time keeping up with demand.
On Ford’s Q2 earnings call, CEO Jim Farley said,“we’re selling them [EVs] as fast as we can make them.”The company plans to achieve a run rate of 600,000 EVs by the end of next year and 2 million in 2026.
And Ford is not the only company planning to ramp up EV production. Essentially every automaker has announced they will or intends to go all electric in the future.
- Mercedes-Benz plans to go all-electric by 2030.
- General Motors (GM) says the automaker is hitting an EV inflection point.
- Hyundai is aiming for 7% of the global BEV share, while Genesis will launch all EV models from 2025.
And this is just the start. Volkswagen, Toyota, and all major automakers have big plans for the EV industry while trying to catch current EV leader Tesla.
Meanwhile, automakers scaling EV production is creating an overwhelming demand for Lithium. Lithium is a critical mineral used in EV batteries. In fact, Lithium-ion (LiOH) batteries are the most popular choice due to their ability to produce high energy at safe levels.
Mercedes-Benz battery plant in Alabama Source: Mercedes-Benz
Lithium is key to overwhelming EV demand, but supply is limited
According to a new report, the lithium market is worth around $7.5 billion, up almost 10% compared to last year. And, experts believe demand will only accelerate from here as automakers ramp EV production. With new incentives for sustainable energy (EVs), automakers are investing billions in electrifying their fleets.
Grand View Research says:
Rapid development in battery technologies is propelling the demand for LiOH, thus, driving market growth
Global automakers plan to invest over half a trillion in EVs and battery tech. For this reason, lithium prices are up over 400% compared to 2021 and remain near record high prices.
Meanwhile, new clean energy incentives are expected to push the market even higher. The senate just approved the largest climate bill ever, with over $400 billion in funding for clean energy over the next 10 years.
With this in mind, Grand View Research forecasts lithium market revenue to reach $18.99 billion, representing a 153% jump compared to this year ($7.49 billion).
At the same time, lithium mining here in the United States is expected to pick up. Last January, the Bureau of Land Management gave the green light for Lithium Nevada Corp’s Thacker Pass Mine. The Thacker Pass Mine expects to be the United States’ largest lithium supply, with production ability of around 80 kilotons by 2026.
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