Reset Point for Global Lithium Market Causing Rising Prices; Mining Sources Become Sold Out So Prices Hold; Market Grows; U.S. Builds Charging Stations.

SITUATION:
There is a limited global supply of Lithium for EV batteries – so market deficit now.
Meantime, pent up demand for EVs caused by COVID now coming about.
Prompts more mining for lithium will be in Europe but U.S. starting to initial mine.
Presently every global operating mine is “sold out” for the future.
Trouble is much of American lithium is too expensive to pull out of the ground

SIGNIFICANCE:
Lithium supply crucial to EV vehicle production & adoption worldwide.
Demand has caused Lithium carbonate prices to jump 68%.
As same time, chargeability of EVs is a long road filled with anxiety & cost.
Biden pledged to build 500,000 charging stations

SOLUTIONS:
Battery powered vehicles now seen as the future of transport.
Prices of Global lithium carbonate & hydroxide to hit new highs by 2024.
Next wave of investment in Lithium is forthcoming—all waiting & watching.
Piedmont is at the leading edge of efforts to build an American supply chain

STATS:
U.S. produced roughly 3,000 tons- largest resources in the world.
Only 1% of global lithium output is both mined and processed in the U.S.
China unearths about 10% & processes about two-thirds of what’s dug up.

SAYS:
“ The whole dynamic is completely changed.” – David Archer, CEO, Savannah Resources

“There has been very little investment in the supply chain.” – Casper Rawles, Benchmark

SOURCES:
Major Players:
Piedmont Lithium [Has rigs on 2,300 acres it owns]
Chinese Association of Automobile Manufacturers
European Association of Automobile Manufacturers
S&P Global Platts

Linkage to SOURCES of Content:
Prices of E-Car Battery Metal Lithium Take Off  [03 11 21 Update] – https://www.wsj.com/articles/booming-electric-vehicle-demand-supercharges-lithium-prices-11615391390

“ A Lithium Miner Stakes a Claim for Nation’s Electric Car Future”- https://www.wsj.com/articles/americas-battery-powered-car-hopes-ride-on-lithium-one-producer-paves-the-way-11615311932

Piedmont Lithium – https://www.piedmontlithium.com/operationsma’s Battery-Pow

 https://www.wsj.com/news/types/finance?mod=bigtop-breadcrumb

America’s Battery-Powered Car Hopes Ride on Lithium. One Producer Paves the Way.

The WSJ Reporters Who pulled the content all together:
Scott Patterson at scott.patterson@wsj.com
Amrith Ramkumar at amrith.ramkumar@wsj.com

 

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