Lithium Market
Lithium is a soft, silvery-white metal that is the lightest of all metals and has excellent electrical conductivity. Though it had a diverse range of applications throughout history, in recent years, it has become a critical component of lithium-ion (‘Li-ion’) batteries due its reactivity, lightness and ability to be recharged.
The demand for lithium has been growing steadily in recent years, driven by the increasing popularity of electric vehicles (EVs) and the transition towards renewable energy sources. Under the International Energy Agency’s (IEA) Stated Policy Scenario, global electric car sales are projected to rise to 37 million in 2030, by which time there will be 226 million electric cars on the road globally.
EVs require large batteries to power their electric motors, and lithium-ion batteries are the most popular choice due to their high energy density and long lifespan. As a result, the global lithium market has experienced significant growth and is expected to continue to expand, with lithium demand from emobility (EVs, electric bikes and motorbikes) expected to increase from 582kt LCE1 in 2023 to 1.87mt LCE in 2028 2 .
The lithium market is a dynamic and fast-growing industry that is essential to the development of new technologies and the transition to a more sustainable future.
Lithium is primarily mined from hard rock and brine deposits. Western Australia has a strategic advantage in the global demand of lithium due to its endowment of mineral resources and access to skilled workers. The production from the Western Australia accounted for 47% of total global lithium supply in 2023 and will remain dominant this decade 3. The state is home to several major lithium projects and has significant reserves of lithium, making it a key player in the global lithium supply chain.
1 LCE: Lithium Carbonate Equivalent
2 Source: S&P Global Market Intelligence, March 2024
3 Source: Government of Western Australia, March 2024