Why lithium – Resource for the 21st century
The market for Lithium is being driven by the growth in demand for Electric Vehicles, as part of the worldwide transition from the traditional combustion engine. Lithium is a core component of the batteries required for the development of the EV market. Demand created by this structural shift in the vehicle market has produced a shortage in the supply of lithium which is expected to remain a feature of the market for some considerable time.
Based on estimates by Benchmark Minerals, lithium demand is forecast to rise from 350,000 tonnes in 2020 to 2.5 million tonnes in 2030 and over 7 million tonnes in 2040, with a positive long-term price trend estimate of US$15,000/tonne for battery-grade Lithium Carbonate and Lithium Hydroxide from 2025 – 2040.
Global lithium demand is forecasted to double by 2028 to over 2 million mt from the 2023 level. A key driver, the battery industry is forecasted to account for 90% of lithium demand by 2026.
In 2022, the World Economic Forum stated that the world would need 2 billion electric vehicles to reach net zero. To support the energy transition, the world needs new lithium projects to support the Li-ion battery supply chain. CleanTech Lithium’s strategy to supply ‘green’ lithium through DLE positions the Company with a critical advantage to deliver to global markets.
Key Strategic Players Entering the Lithium Space
CleanTech Lithium is well positioned in a market underpinned by growing demand for EVs. Key strategic players such as CATL, Volkswagen and Toyota have entered the global lithium race by supporting lithium producers to meet the demand for lithium.