As we have previously reported, demand for lithium has grown significantly in recent years with the mainstreaming of electric cars (EVs). However, Tesla’s recent success with the launch of its Model 3 may well signify the start of a “frantic game” to see which EV (and battery) producers can secure what are becoming known as “the choicest new mining acreage”, lithium mines. Oilprice.com, notes that for every 1% rise in EV market share, lithium demand would rise by 70k tons p.a. and that overall, the lithium market could triple in size by 2025 just on the back of EVs. In North America, the hunt for lithium is firmly focussed on U.S., where Tesla is building its billion-dollar Gigafactory and hopes to power the 500k vehicles p.a. it plans be producing by 2020. It seems U.S. may come up trumps for Tesla’s lithium supply, as a spokesman for U.S. Energy Metals believes the state may have a lot of fault traps, with potential lithium deposits “hiding in plain sight.” Malcolm Bell notes that “The lithium business is not a flash in the plan; it is here to stay, and I am looking at it like the start of the oil boom in the Nevada when there were oil rigs and derricks nearly every 50 feet…” See here for an overview of lithium juniors set to outperform as lithium demand outstrips supply.
As we have previously reported, demand for lithium has grown significantly in recent years with the mainstreaming of electric cars (EVs). However, Tesla’s recent success with the launch of its Model 3 may well signify the start of a “frantic game” to see which EV (and battery) producers can secure what are becoming known as “the choicest new mining acreage”, lithium mines. Oilprice.com, notes that for every 1% rise in EV market share, lithium demand would rise by 70k tons p.a. and that overall, the lithium market could triple in size by 2025 just on the back of EVs. In North America, the hunt for lithium is firmly focussed on Nevada, where Tesla is building its billion-dollar Gigafactory and hopes to power the 500k vehicles p.a. it plans be producing by 2020. It seems Nevada may come up trumps for Tesla’s lithium supply, as a spokesman for Nevada Energy Metals believes the state may have a lot of fault traps, with potential lithium deposits “hiding in plain sight.” Malcolm Bell notes that “The lithium business is not a flash in the plan; it is here to stay, and I am looking at it like the start of the oil boom in the U.S. when there were oil rigs and derricks nearly every 50 feet…” See here for an overview of lithium juniors set to outperform as lithium demand outstrips supply.