Lithium Processors May Fall Short Of Electric Car Demands
Demand for battery-grade lithium compounds is expected to skyrocket in coming decades on soaring demand for electric cars.
While there is plenty of lithium about, battery makers and other end-users such as car manufacturers will need to sign multi-year deals that encourage large producers to invest more, and faster, industry sources say.
“We’ve established the timeline for our own expansion, based on the commitments our customers are making with us,” Tom Schneberger, global business director at FMC Lithium, one of the world’s top four producers, told Reuters.
The production and use of electric cars is projected by Morgan Stanley analysts to rise to 2.9 percent of 99 million new vehicles in 2020 and to 9.4 percent of 102 million new vehicles in 2025. By 2050, it expects 81 percent of 132 million new car sales will be electric.