Categories: Energy / General Market Commentary
Topics: General Energy / General Market Commentary

The race for lithium heats up

The race for lithium heats up

Is lithium the new super-mineral? Analysts seem to think so, including those who wrote Price Waterhouse Coopers latest mining study.

The report highlights lithium’s rising importance on the Toronto Venture Exchange, noting that five companies in the top 100 mining juniors are primarily lithium plays, compared with just one in 2015. This year, there’s even a company within the top 10: Canadian Nemaska Lithium, occupying the 8th spot.  

According to the consultancy firm, the race for the white metal has heated up particularly amongst the juniors, given its growing importance as a key material in batteries for electric vehicles, e-bikes, and consumer electronic products.

But despite the increase in demand, which is expected to reach almost 350,000 mt by 2020, supply isn’t keeping pace. “Supply will continue to trail until new projects come online in the next five years,” PwC states. “As prices for lithium soar, more than 100 companies are exploring for new supplies, many focused on the lithium triangle defined by Bolivia, Chile, and Argentina.”

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