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The demand for lithium, essential for electric vehicles, is expected to face twenty years of rapid growth, according to our new report.
The Oregon Group forecasts lithium’s dominant demand segment — electric batteries and vehicles (EVs) — is also it’s fastest growing, a dynamic rarely encountered even in bull markets.
Soft, light, and silvery white, lithium is an energy dense, battery component superstar. It’s vital to the global energy transition, and it’s the focus of a high-stakes race for economic dominance in this new age of green tech.
McKinsey & Company forecasts global lithium demand to increase 20% annually to 2030. Tesla suggests the company will need 1,000 kilotons of lithium carbonate equivalent (LCE) per year by 2030, or x16 its demand in 2022, and leading battery analysts, Benchmark Minerals, see even greater growth all the way to 2050. By the IEA’s estimate, the sector needs up to 50 new mines in less than a decade – a big ask considering the supply side dynamics.
Our report — “Inside the accelerating global race for lithium” — examines how the lithium market has seen a significant price correction in 2023, stalling new lithium projects and limiting supply expansion needed to meet the expected increase in demand for the next generation of EVs. Price volatility is also compounded by global geopolitical tensions, local community environmental concerns, as well as government permitting issues.
Established lithium producers face a unique set of challenges that offers an opportunity for new jurisdictions, particularly, in Africa.
Included in The Oregon Group report:
- Lithium explained
- The big trends
- Investing in lithium
- Projections by The Oregon Group
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