Global Demand for Lithium: Trends and Predictions

As a world, we desperately need to cut back on carbon emissions and find better ways to store carbon, rather than release it into the atmosphere. To do this, almost all of our new-and-improved processes rely on one element known as ‘white gold’: lithium.

The world is thirsty for lithium, thanks to its role in sparing fossil fuels and its ability to store renewable energy.

So, what will the future of global demand for lithium look like? Here, Lithium Metal Australia outlines the trends and predictions to consider:

Global lithium demand over the next 10 years

Global lithium demand is expected to skyrocket over the next decade. The lithium demand for 2024 is tipped to reach 1 million metric tons, while predicting roughly a 20% increase in demand per year after that, reaching almost 4 million metric tons by 2035.

To keep up with this demand, we’ll see a global increase in lithium mining. Tesla, for example, has made forecasts that indicate they’ll need approximately 1,000 kilotons of lithium carbonate equivalent per year by 2030, which is 30% more than the world currently produces.

Where are the world’s biggest lithium deposits?

Lithium is found all over the world. Currently, Australia is the world’s largest producer of lithium, providing us excellent opportunities for economic growth. Chile holds the largest lithium deposits in the world and is rapidly increasing its lithium output, making the South American nation the world’s second-largest producer of lithium. Argentina, China and the United States also have significant deposits of lithium. 

Why is lithium such an in-demand element?

Lithium is currently one of the most sought-after elements in the world, and it’s only expected to grow. The reason why lithium is so in-demand is simple: it’s essential to the production of a range of items which we use every day: from phones and laptops, to electric vehicles and home energy storage batteries.

• Electric vehicles
  
  Lithium is crucial to the production of electric vehicles, which are the future of the automotive industry. Signatories of the Glasgow Declaration, including Canada and the UK, will ban the production of fossil fuel-powered vehicles by 2040, producing only zero-emission vehicles. Lithium is therefore a vital component of the future.
• Home energy storage batteries
  
  Australians love their solar panels, but one thing we haven’t universally caught onto yet is the home energy storage system, which stores unused solar or wind power. Lithium is also essential for these batteries, so if the idea is to one day become a nation that’s fully-powered by renewable energy, then lithium demand is only going to increase.

Lithium Metal Australia is a team that aims to keep up with the world’s demand for lithium. We extract lithium metal in a responsible way, with the aim of decarbonisation of the planet. Our processes of lithium extraction are clean and efficient, using the most energy- and cost-efficient process to produce lithium metal – carbothermic reduction. Contact Lithium Metal Australia to learn more about our world-leading lithium metal extraction.

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