Why Rising Lithium Demand May Exceed Lithium Production this Year Creating an Opportunity for Miners

FinancialNewsMedia.com News Commentary

PALM BEACH, Fla., Sept. 21, 2023 /PRNewswire/ -- Global lithium demand is expected to outmatch lithium production this year, which should spur mining and revenues in the market. Electrification of vehicles is projected to attract a significant volume of lithium-ion batteries, thus anticipated to drive the market over the forecast period. The automotive application segment is expected to witness substantial growth over the forecast period, driven by stringent regulations for ICE automakers imposed by government bodies to reduce carbon dioxide emissions from vehicles. This has shifted the interest of automakers toward producing electric vehicles (EVs), which is anticipated to benefit the demand for lithium and related products. Government subsidies for EVs, along with investments in this space, are likely to act as an additional booster to the growth of the market.  A report from Grand View Research projected that the global lithium market size, which was valued at USD 7.49 billion in 2022, is expected to reach USD 8.20 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 12.3% from 2023 to 2030.  The report said: "The U.S. holds major significance in battery production after China, which makes it one of the key lithium-consuming countries in the world. The country has huge reserves of this important metal. However, the country mines only about 1.0% of the total demand in the world. In 2022, the production took place at only one location in the U.S., which is a brine operation in Nevada. However, the country is expected to boost its mining capabilities in the industry over the coming years."  Active mining companies in the markets this week include:  Indigo Exploration Inc. (OTCQB:IXIXF) (TSXV:IXI.VN), E3 LITHIUM LTD. (OTCQX:EEMMF) (TSXV:ETL.VN), Lithium Americas Corp. (NYSE:LAC) (TSX:LAC.TO), American Lithium Corp. (NASDAQ:AMLI) (TSXV:LI.VN), American Battery Technology Company (OTCQX:ABML).