The temper on the Fastmarkets Lithium Provide and Battery Uncooked Supplies Convention in Las Vegas, the world’s largest, mirrored a cautious hope amongst attendees that the trade can meet an anticipated demand leap later this decade as EVs and battery storage applied sciences develop extra standard.
The convention had roughly 1,100 attendees, in keeping with final 12 months and almost triple 2019 ranges, organizers mentioned.
“We’re actually targeted on the basics of the underlying enterprise,” mentioned Patrick Howarth, head of Exxon’s lithium division, which introduced on the convention it could develop its lithium manufacturing plans in Arkansas. “We’re not scared off by low costs, and we’re not drawn in by excessive costs.”
Fastmarkets information present, for instance, that US demand for lithium will improve 29% annually by means of 2030, with jumps additionally anticipated all through the remainder of the world.
“Crucial minerals are the oil and gasoline of our power future,” Ashley Zumwalt-Forbes, the US Vitality Division’s deputy director for batteries and significant supplies, advised the convention.
Zumwalt-Forbes oversees a US authorities grant program for the crucial minerals provide chain and mentioned she was wanting to have extra lithium corporations apply for funding.
The demand projections helped offset the somber temper that has permeated the trade in current months after layoffs from Lake Sources, Albemarle and others.
“For these of us which might be frightened concerning the market sentiments at this second in time, hold your eye on the long-term trajectory,” mentioned Dale Henderson, CEO of Australian lithium miner Pilbara Minerals.
International lithium mine provide was greater than 1 million metric tons final 12 months, a determine anticipated to greater than double by 2026 largely as a result of expansions in Africa, China and Australia, in keeping with Fastmarkets information. But producers warned that except costs rise, that offer is unlikely to be accessible.
“We’re going to be measured and judged in how we react to costs and provide the market,” mentioned Sarah Maryssael, chief technique officer for Arcadium Lithium, which has improvement tasks throughout the globe.
Albemarle, the world’s largest lithium producer, began the convention with a stark warning about “regarding” lithium costs, however then mapped out a plan to public sale off provides of its metals to the very best bidder and struck a hopeful tone on demand later this decade.
“I’m not frightened about demand,” mentioned Eric Norris, head of Albemarle’s power storage enterprise. “Ideally it’d be within the US. But when it’s not within the US, little question there’ll be demand elsewhere.”
(By Ernest Scheyder; Enhancing by Jamie Freed)