Electric cars thread, page-535

Demand Drivers

The demand for lithium is increasing, given its growing importance in several industrial sectors – EVs, consumer electronics and the energy sector.

Lithium has numerous applications, from lubricating grease and glass fabrication, to glazes for ceramics, and batteries.

The metal is expected to continue to play an integral role in battery powered vehicles and other devices.

However, the lithium market is currently underdeveloped in comparison to other industrial commodities, with a few conglomerates controlling the market.

The supply of lithium is expected to be ramped up to meet the growing demand.

According to Deutsche Bank, the global lithium market will grow from 184,000 tonnes in 2015 to 535,000 tonnes LCE by 2025. The rise in demand will be driven by batteries for EVs and energy storage for wind and solar plants.

Increasing EV Penetration

Lithium is used in high-energy-density rechargeable lithium-ion batteries which power full-electric, plug-in hybrid and hybrid vehicles.

Due to the growth in EV technology, concerns over increased CO2 pollution and rising fuel costs from combustion engines, lithium has witnessed widespread use in EV batteries.

This market is primarily driven by the mass uptake of EV technology in China, where government subsidies are in place for both passenger EVs and commercial EVs (buses and small trucks).