LITHIUM

general

Lithium (Li) is an element found on the Periodic Table. The name lithium comes from the Greek word “lithos” which means rock. Lithium has a gray-silver look and is very soft. It can be extracted from a variety of sources, such as salt-water lake beds (brines), minerals (hard rock), or clays (like Valjevo’s).

Uses

Lithium is most commonly known today for its key role in the world’s green evolution. Lithium’s high electrochemical potential makes it a valuable component of rechargeable Lithium-ion batteries. Lithium is unlikely to be substituted in batteries because it has the highest energy density of the battery metals (cobalt, manganese, nickel, phosphorus).

Lithium-ion batteries are vital to the world’s advancement towards Electric Vehicles (EVs) and the electrification of the global economy.

Source: Bloomberg new energy finance | 2020 Electric vehicle outlook

According to Bloomberg New Energy Finance, between 2020 and 2025 EV sales are expected to increase from 1 in 20 (5%) of global passenger vehicle sales to 1 in 10 (10%). Between 2025 and 2030, EV sales are expected to jump to 1 in 4 (25%) and by 2040, this number will jump to more than 1 in 2 (57%).

For its use in Lithium-ion batteries and EVs, lithium is mined and processed into refined products, such as lithium carbonate, lithium hydroxide, lithium sulfate, or lithium metal. Global demand and supply for lithium is most commonly denoted by Lithium Carbonate Equivalent (LCE).

*Supply includes operational supply, secondary supply, continued financing additional tonnes, and probable additional tonnes of LCE.

Source: Benchmark Minerals Intelligence | 2019 lithium market outlook

Between 2020 and 2025, demand for lithium is predicted to increase 3-fold. Through this period, supply may keep pace with demand. However, by 2026 demand for lithium continues to grow rapidly, while supply reaches its known limits.

This medium to long-term lithium supply deficiency aligns with Valjevo’s production schedule.