Electric vehicles are gaining in popularity, further increasing the demand for lithium.
An electric vehicle is powered by a battery whose main component is lithium. By 2030, it is estimated that the electromobility market will absorb around 90 percent of the lithium produced. Traditional lithium consumers (greases, ceramics, lubricants) will continue to lose importance. According to recent surveys by the investment bank UBS, consumer acceptance of and interest in electric vehicles is steadily increasing. In addition, there are phase-out plans for combustion engines and high fuel prices. Year-on-year sales of e-vehicles are expected to increase by around 44 percent in 2022. A market share of ten percent is therefore already expected to be achieved in the current year, and the trend is upwards.
Battery metals, and lithium in particular, are therefore in hot demand, which is why lithium is also referred to as the white gold. Most analysts are forecasting a significant lithium deficit. As BloombergNEF points out, this year the cost of lithium-ion batteries could rise for the first time since 2010. Acquisitions in the lithium market and the trend toward long-term contracts for lithium speak for themselves. Not only is lithium being installed in vehicles, but also in portable devices and it is playing a role in the military. Energy storage for solar and wind power also work with the lithium-ion batteries. So, companies that have lithium, the raw material in demand, in their projects should be poised for success.
These include ION Energy – https://www.youtube.com/watch?v=f1D_y49h7eQ&t=10s – with its two projects in Mongolia. Well financed and with China as a potential customer country as a neighbor, the company appears promising.
Alpha Lithium – https://www.youtube.com/watch?v=n69IrrXNDPE – also concentrates on high-grade lithium in the famous lithium triangle in Argentina. There, the company owns a good 27,000 hectares of land, 100 percent of which it owns. The Tolillar Salar project is one of the most unexplored and exciting areas in the lithium triangle.
Current corporate information and press releases from Alpha Lithium (- https://www.resource-capital.ch/en/companies/alpha-lithium-corp/ -).
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