Brief Summary
Thanks to the rising demand for rechargeable lithium-ion batteries due to its use in electric vehicles, smartphones, laptops, and other renewable energies, demand for lithium have been on an uproar. Lithium demand is projected to increase exponentially in the near future, and while lithium supply will increase in order to meet rising demand, a deficit is expected. Projected possibility of a deficit is good news for investors, as it should help keep lithium prices around the same high level as it is currently. As such, it may be difficult for investors to see which lithium mining company is the best investment.
With dwindling supply, prices are expected to continue to rise as demand shows no signs of slowing down. According to Statista, an annual 7.5% demand growth rate is projected from now all the way through 2025. By that time, annual demand will be 410, 055 tonnes. Major lithium producer, Albemarle (NYSE:$ALB) also noted that electric vehicles — now in rising demand thanks to the likes of Tesla — will be the biggest reason for the high demand for lithium.
The need for lithium-ion batteries is so high that Tesla has even constructed a huge battery plant in Nevada to aid in its ambitious Model 3 production plans.
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