Explore 3 Stock Ideas & Industry Insights Download Free Report
Lithium is one of the lightest alkali metals and highly reactive elements. Its name is derived from the Greek word “lithos”, which means stone. It is extracted from two main sources, i.e., ore mining and salt deserts. Australia is the main source of ore-mined lithium, while Chile and Argentina are well known for salt deserts or salars.
The majority of the world’s lithium is extracted from brine sources, which are found below lakes of high-altitude salt flats. The extraction of lithium involves drilling a hole and pumping brine to the surface with the help of water. The mixture is then left for many months for evaporation. The mixture is then distilled to extract lithium after 12 to 18 months.
The lithium demand has hit record levels in the past few years, and the two key contributors to this rise in demand are:
Lithium mining is often criticised for using excessive water and creating drought-like situations in various parts of the world.
Lithium and its compounds are predominantly extracted from hard rock sources and brine deposits. Historically, hard rock sources were mined, but since the 1990s, brine deposits have been used to produce lithium on a commercial scale. Most of the existing lithium supply comes from hard rock mineral, spodumene, which is found in Australia and the United States, or is being extracted from brine solutions from salars in South America.
Lithium concentration in brine solutions is increased by solar evaporation in ponds. The evaporation process is a time-consuming one and could take up to one-and-a-half years to concentrate the solution to 6% Li content. Thereafter, the brine solution is used to produce high-value lithium compounds, including lithium chloride, lithium carbonate and lithium hydroxide.
With disruptions in the cobalt supply chain, automobile makers are switching to low-cobalt battery chemistries. Low-cobalt cathodes for lithium batteries are anticipated to utilise lithium hydroxide instead of lithium carbonate as a feedstock. Seawater contains over 0.2 parts per million lithium. Some scientists have proposed electrolysis to recover lithium compounds from seawater, but it is not yet commercially viable.
Most prominently, lithium is used to manufacture rechargeable batteries for mobile phones, laptops, digital cameras and electric vehicles. Additionally, it is used in ceramics, glasses, alloys, lubrication and medicine.
The top three lithium-producing nations are Australia, Chile and China. Collectively, these three countries accounted for over 86% of the global lithium production in 2020 with Australia accounting for over half of the global lithium supply.With the burgeoning demand for electric vehicles, lithium’s demand is expected to grow rapidly in this decade.
The lithium price continues to grow as the demand for EVs exceeds supply due to material and refinery bottlenecks. However, lithium is not a scarce mineral. It is the 33rd most widely available element on the earth and is spread across in trace amounts in seawater, soils, rocks, surface and groundwater.
China, Chile, and Australia hold the world’s largest reserves. Almost 63% of the global reserves are found within the lithium triangle, a region shared by Bolivia, Argentina, and Chile. Furthermore, Central and Latin American countries such as Mexico and Peru hold more than three million tonnes of lithium in reserves.
The global market for alkali metal-lithium is growing rapidly. The period between 2008 and 2018 alone saw annual production in the major producing countries rise multifold. Lithium’s usage in EV batteries has been an important source of demand growth. Lithium is also used in laptop and cell phone batteries, as well as in the glass and ceramics industry.
The information displayed on this page is provided for general informational purposes only and is intended to present factual market data relating to commodities and related listed securities. The information has not been created, researched, analysed, or independently verified by Kalkine. Kalkine does not provide any opinion, recommendation, representation, or advice regarding the merits, suitability, value, performance, prospects, or risks of any commodity displayed on this page.
The information on this website has been provided from a wide variety of sources which Kalkine, to the best of its knowledge and belief, considers accurate. The information does not constitute financial product advice, a recommendation or invitation to buy, sell, hold, subscribe for, or otherwise deal in any financial product. The information does not take into account any person’s investment objectives, financial situation, risk profile, investment experience, tax position, or particular needs and we strongly suggest you seek advice before acting upon any information provided.
To the extent permitted by law, Kalkine Limited excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Limited hereby limits its liability, to the extent permitted by law to the resupply of services.
Any performance figures, price movements, returns, charts, or information are based on historical or current market data only. Past performance is not a reliable indicator of future performance. Users should not rely on the information on this page for making investment decisions and should seek independent professional advice before acting on any information.
We use cookies to help us improve, promote, and protect our services. By continuing to use this site, we assume you consent to our Cookies Policy. For more information, read our Privacy Policy and Terms and Conditions
Please wait processing your request...
You are not subscribed for this report, Want to See?
One of our sales representative will contact you soon!
Welcome to Kalkine!
Download Free Report