A record number of mining companies are exploring for lithium in the Northern Territory this year, as the price for the soft metal hits new highs. Ian Scrimgeour from the NT Department of Mines and Energy said the level of exploration was extraordinary and 2016 was shaping up to be "the year of lithium in the NT". "Over the last 12 months there's been a dramatic increase in the price of lithium — it's tripled in price," he said. "This is all being driven by the growth of renewables, particularly batteries for electric vehicles and renewable storage. "The renewable energy industry in China is booming and that's what's driving a lot of the demand." Mr Scrimgeour said up to a dozen companies were currently exploring for lithium in the NT, with many looking at the Bynoe region near Darwin. Subscribe for the national headlines of the day. "We have about four companies out there at the moment [in the Bynoe area], one has been drilling in the past month and we should see the first results flowing in over the next month or so." He said other areas of interest include sites near Barrow Creek and Harts Range in Central Australia. Mr Scrimgeour said it was still early days to say if the exploration frenzy would result in the construction of a NT lithium mine. "We're hoping there'll be some exploration success, and the Bynoe area we think has very strong potential, but it would certainly then be a number of years between that initial discovery and actually developing a mine," he said. "I suppose what we don't know, is how long is this lithium boom going to last? "It could last 12 months, it could last a decade. "We don't know [what would happen] if the big lithium mines currently in production in places like Western Australia and Chile, if they can ramp up production at the same rate as demand increases, then maybe the price will drop. "We also don't know what's going to happen in terms of battery technology and whether lithium will continue to be the element of choice for batteries. "So it's a very positive outlook for lithium at the moment but longer term it's very hard to predict where it's all going to go." One of the companies exploring for lithium near Darwin is Core Exploration, which last month reported to the ASX that it had identified an "exceptionally large pegmatite swarm" that was "unusually large by world standards and represents an outstanding exploration target for lithium".
The hunt for lithium has heated up in Australia’s the Northern Territory (NT), as the price for the soft metal continues to climb thanks to the rise in demand for electric vehicles, among other renewable energy products. There are currently 12 companies exploring for lithium in the NT, although it is still too soon to predict if the local industry will take off, as exploration sites are, as yet, unproven.