L R AS Published on Sunday 21 May 2023 - n° 446 - Categories:battery materials

Outlook for lithium in Australia

The development of electric vehicles is leading to increased demand for lithium. Australia estimates that within the next five years, revenues from

emissions from lithium extraction will be equivalent to those from thermal coal. By 2027-2028, domestic lithium production and revenues from lithium exports will double. The value of lithium exports is expected to reach A$19 billion; in comparison, coal shipments for power stations are expected to fall by 71% over the same period.

The covid and then the war in Ukraine led to a spike in fossil fuel prices. Prices have begun to stabilise. The price of thermal coal fell significantly in the first quarter of this year. Despite this drop, the total value of thermal coal exports is expected to reach US$65 billion in 2023.

Lithium :

By 2027-2028, the price of lithium will equal that of thermal coal. It has risen over the past year due to supply shortages. The lithium market this year is expected to be worth nearly $19 billion. It should continue to rise.

This upward trend in demand for lithium can be attributed to a tenfold increase in sales of electric vehicles between now and 2030. Australia is the world's largest exporter of lithium. It accounted for more than half of global production last year.

Currently, 80% of Australia's lithium is used in the production of lithium-ion batteries. Given the 40% increase in electric vehicle sales last year and their widespread adoption, this proportion is expected to rise to 90%.

Australia is well equipped to meet the demand for lithium, nickel, cobalt and other key energy minerals.

Australia holds 27% of the world's known lithium reserves, 22% of nickel reserves and 21% of cobalt reserves. By 2040, global demand for lithium will increase 41-fold, while the market value of nickel and cobalt is expected to increase 30-fold.

https://www.energytrend.com/news/20230517-31960.html
EnergyTrend of 17 May 2023

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