Popularity of Electric Vehicles (EV) Creating Unprecedented Demand for Lithium

FinancialNewsMedia.com News Commentary

PALM BEACH, Fla., Aug. 10, 2022 /PRNewswire/ -- According to reports, the global lithium market size was valued at USD 6.83 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 12.0% from 2022 to 2030. 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 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. 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.  A report from Grand View Research said that: "The carbonate product segment dominated the market and accounted for the largest share of over 57.0% in 2021, in terms of volume. Lithium Carbonate (Li₂CO₃) is the most stable inorganic compound and is used in forming other compounds, such as LiOH and even pure metal. Carbonates products are also used in the treatment of bipolar disorder. This compound is also used in batteries and has several applications in the construction sector for waterproofing slurries and as adhesives. LiOH is a white hygroscopic crystalline material and an inorganic compound mostly used by battery manufacturers; it is commercially available as anhydrous and monohydrate." Active mining stocks in the markets this week include:  Lithium South Development Corporation (OTCQB: LISMF) (TSX-V: LIS), Standard Lithium Ltd. (NYSE: SLI) (TSXV: SLI), Lithium Americas Corp. (NYSE: LAC) (TSX: LAC), American Lithium Corp. (OTCQB: LIACF)  (TSX-V: LI), Livent Corporation (NYSE: LTHM).