Lithium is the answer to the future of clean energy and will have a significant role in reducing the global carbon footprint and dependence on fossil fuels.
Lithium will substitute fossil fuels in vehicles, make renewable energy such as wind and solar sustainable and underpin the future of clean energy.
In early 2018, there were a little more than two million electric cars in circulation in the world. This compares starkly to the 1.1 billion cars travelling on today’s roads. By 2040, the global car fleet is expected to nearly double to two billion cars, according to research house Bernstein.
Thankfully, governments around the world are working on new laws to ensure that petrol, diesel and flex-fuelled cars are substituted with lithium-battery-powered environmentally-friendly and quiet cars between 2030 and 2040. As lithium battery technology continues to evolve, consumers will also potentially have access to more economical cars as engines will be cheaper to build and last longer.Lithium is the lightest weight metal in the periodic chart. It has the greatest electrochemical properties, which allows for efficient energy to weight performance, such as mobility devices and electric vehicle batteries.
Lithium Industry Trends
The need for lithium continues to accelerate, with demand from companies that produce batteries to power electric vehicles, laptops and other high-tech devices.
Price forecasted to increase exponentially over the next decade.
Overall lithium demand is forecast to rise from 200,000 tons of lithium carbonate to possibly more than 2,000,000 tons lithium carbonate by 2025.
Automotive industry is forecasted to have the biggest demand for lithium batteries that may become 70% of overall demand for lithium. Volvo has committed to build 5 million electric cars by 2020.
There are 45 gigafactories either built or in the planning stages that may consume an estimated 2 million tons of lithium carbonate annually.At this time, there is no commercial replacement for lithium.
Bloomberg said, “even if the price of lithium soars 300 percent, battery costs would rise by only 2%.” Tesla (TSLA), CEO, Elon Musk calls lithium “the salt on the salad.”
Vehicle manufactures are spending $365 billion USD before 2025 to produce electric vehicles.