The lithium market is bouncing back as the battery-operated eclectic vehicle (EV) revolution spurs demand. Lithium is the main ingredient in rechargeable batteries used in EVs, portable electronic devices, and energy storage packs.
As electric vehicle adoption increases globally from 2% of new-vehicle sales in 2018 to 15% by 2028, lithium demand is forecast to grow roughly 5 times to 1.5 million metric tons, according to Morningstar equity analyst Seth Goldstein. The number of electric cars on the road is projected by the International Energy Agency to jump from 5 million in 2018 to a staggering 145 million by 2030. As a result, production of lithium-ion batteries is expected to increase significantly, boosting lithium demand. Roskill, a firm that specializes in research and consulting in metals, minerals and chemical industries, forecasts lithium demand from battery applications to rise 25% per year through to 2028.
