Global Lithium and Battery Trends: Top Stories You Need to Know!

Lithium and battery technologies are at the forefront of global energy transformation in 2024. As demand for electric vehicles, renewable energy storage, and consumer electronics soars, the race to secure lithium and innovate in battery design is intensifying. This surge is driving significant advancements and investments worldwide. Discover the top lithium stories making news globally.

China’s Lithium Production Hurdles Amid Battery Supply Boom: Insights from S&P Global

China is rapidly expanding its battery supply chain, sparking concerns about lithium supply. Ken Brinsden, CEO of Patriot Battery Metals Inc., predicts that lithium prices will rise despite the recent slump. He believes China’s ongoing expansion, particularly on the more expensive side of the cost curve, will eventually push prices higher. As battery cells become cheaper, the demand for lithium-ion batteries is growing faster than anticipated. This highlights a looming imbalance in lithium demand and supply in China.

S&P Global forecasts a shortage of 8,000 metric tons of lithium chemicals by 2028, which could further spike prices. This means China might face significant supply challenges in the future.

Alice Yu, a senior analyst at S&P Global, explained that China is boosting domestic lithium production and reducing imports. However, despite higher production in China and Africa, meeting the country’s rising demand remains uncertain.

source: S&P Global Market Intelligence

Shunyu Yao, another analyst, noted a significant factor that is obstructing lithium production. He believes China’s limited natural resources restrict large-scale growth, even though the country successfully manages the cost.

Furthermore, operating costs in China and Zimbabwe remain higher than in Australia. In Sichuan, where China produces most of its lithium, harsh winters force a production halt for three to four months each year. Additionally, Qinghai province, known for its salt lakes, faced high costs due to a high magnesium-to-lithium ratio. Recent technological advancements have made these operations more competitive, but the use of “old brine” extraction methods could slow expansion further.

The research firm forecasts that even though China’s lithium supply is expected to double by 2028, it will only meet 36% of the demand for EVs.

Chinese Giant Ganfeng Lithium Invests $500M in Turkey

Ganfeng Lithium recently announced a joint venture of $500 million with Yiğit Akü, Turkey’s leading lead-acid battery manufacturer, to boost lithium battery capacity. The new facility will produce 5 gigawatt-hours of lithium battery cells and packs annually.

Ganfeng Lithium Group, the Chinese lithium resource and technology giant, is focusing on expanding its downstream battery production. Last year, 74% of its revenue came from upstream battery materials, and 23% from lithium battery cells and packs. Notably, the R&D center in Turkey will feature advanced lithium battery technologies, including solid-state and high-power batteries for marine and aerospace applications. Both companies expect to grow their overseas customer base and significantly bolster international business. However, the final agreement is still pending approval.

Benchmark’s 2024 $1.6 Trillion Battery Investment Forecast

Benchmark predicts meeting battery demand through 2040 will require at least $1.6 trillion in investment. This amount is nearly 3X the $571 billion needed to satisfy 2030 demand.

Battery demand is expected to rise from 937 gigawatt-hours in 2023 to 3.7 terawatt-hours by 2030. Demand will double again from 2030 to 2040, according to Benchmark’s Lithium-Ion Battery Database.

it further explains, of the $1.6 trillion needed by 2040, 44% will go toward building gigafactories that produce battery cells and assemble packs. As more gigafactories gear up and electric vehicles reach the end of their life, the volume of battery scrap will grow significantly. Subsequently, recycling this scrap into battery materials will require $26 billion by 2030. This would increase investment 5X to $157 billion by 2040 due to the growing amount of battery scrap.

Benchmark also discovered that among critical raw materials, lithium will require the largest investments: $94 billion for 2030 and double that for 2040. Additionally, producing cathode active materials will account for 52% of the midstream investment needed by 2040. These figures are based on Benchmark’s base case scenario. Moreover, meeting the ambitious targets set by policymakers and industry may require even greater investment.

Pilbara Minerals to Acquire Latin Resources for $369.4M

Australia’s leading lithium miner, Pilbara Minerals Ltd., and Latin Resources Ltd. have agreed on a binding Scheme Implementation Agreement (SIA). Under this arrangement, Pilbara Minerals plans to acquire 100% of Latin Resources’ shares for $369.4 million. This deal will allow Pilbara to take control of Latin Resources’ Salinas Lithium Project, which could become a top global hard rock lithium operation. Located in Minas Gerais, Brazil, Salinas offers Pilbara flexibility to supply new markets, depending on prevailing market conditions.

For Latin Resources shareholders, this acquisition means an immediate premium and the unlocking of Salinas’ value. They will benefit from Pilbara’s experience in developing hard rock lithium projects and gain exposure to production from Pilbara’s Tier 1 Pilgangoora operation. For Pilbara, the deal would add approximately 20% to its Mineral Resources and 30% to its steady-state production. This move also opens up new supply opportunities for the North American and European battery markets.

Image: ASX-listed Future Capital Investment into Lithium Assetssource: Clean Energy Finance

E3 Lithium Boosts Canadian Battery Supply with New Demo Facility

E3 Lithium Ltd. plans to build a fully integrated Lithium Brine Demonstration Facility in Alberta. This project aims to produce battery-grade lithium carbonate from brines within the Leduc reservoir. Last year, the company introduced the Direct Lithium Extraction (DLE) pilot program, which was a huge success. Consequently, it will scale up the DLE system and integrate purification, concentration, and chemical conversion processes to create a comprehensive, commercial-like system.

The news release further reveals that the Demo Project will provide real-time data and samples for potential partnerships. This will optimize and reduce risks in the lithium production process. E3’s initiative is a significant step forward in establishing Alberta as a key player in the global battery supply chain. The company plans to share further details in the coming months as it finalizes the project’s design and operations.

European Energy Metals Exploration Plans for Finland

Vancouver-based European Energy Metals Corp. has submitted applications for five new Exploration Licenses (ELs) in Finland, adding to its substantial land holdings. These new ELs cover 10,220 hectares in the Kaustinen region, known for their potential in Lithium-Cesium-Tantalum (LCT) Pegmatites. With this addition, the company’s total EL holdings now reach 15,770 hectares, including the existing Nabba and Nabba 2 ELs.

Jeremy Poirier, CEO of European Energy Metals said,

“The expansion of our exploration licenses allows for more significant exploration to test and define the subsurface extent of widespread mineralization identified on the surface. In conjunction, our 2024 exploration program is designed to advance these projects and areas to a drill definition stage. The prospectivity of our tenements is highlighted by the proximity to other significant known deposits in addition to Keliber’s lithium concentrator currently under construction.”

source: European Energy Metals

The press release mentions that the company’s concessions are strategically located within 15 kms of the Keliber mine, which is set to begin production in late 2025. This area is undergoing significant development, with a €600 million investment led by Sibanye-Stillwater Limited and the Finnish Minerals Group. The project includes open-pit and underground mining, a central spodumene concentrator plant, and a lithium hydroxide chemical plant, aiming to establish a complete lithium supply chain in the region.

FURTHER READING: Why Weak Lithium Prices Will Persist in Early Q3 2024

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