As demand for electric vehicles revs up, so does the need for lithium, a key input for batteries. Historically, battery technology has relied on lithium carbonate, but manufacturers are increasingly turning to batteries that rely on lithium hydroxide. Partner Sergey Alyabyev and coauthors find that there could be more demand for lithium hydroxide than for lithium carbonate by 2030. The market shift is a potential opportunity for the Australian resources sector.
Image description:
A bar chart shows the projected increase in refined lithium demand by product type from 2018–30. Lithium metal and hydroxide demand is predicted to grow faster than lithium carbonate equivalent (LCE) over the next decade. In 2018, the total demand was 0.29 million tons of LCE, growing to 0.72 million tons in 2022 (+25% per annum). The projected demand is expected to reach 3.06 million tons by 2030 (+20% per annum between 2022–30).
Footnote 1: Projections are based on base case demand.
Footnote 2: Lithium metal demand is anticipated to grow most rapidly due to anode technology changes.
Source: McKinsey Center for Future Mobility; McKinsey MetalSpans.
End of image description.
To read the article, see “Australia’s potential in the lithium market,” June 9, 2023.