a shortage of materials in the lithium market -Lithium - Ion Battery Equipment

Is there a shortage of materials in the lithium market in 2025? -Lithium - Ion Battery Equipment

According to foreign media reports, American lithium battery manufacturer Livent said that the lithium market will be tight by 2025, because it is difficult for manufacturers to rapidly increase production to meet the huge demand for lithium in the market. Lithium is a necessary material for the production of electric vehicle batteries.

Paul Graves, CEO of Livent, said, "We expect that the demand for lithium materials will be five times that of 2017 by 2025. The biggest challenge we face is how to produce enough products to meet market demand. In the near future, the risk of continuous lithium shortage in the market will be great." The long-term demand outlook predicted by Livent is consistent with that of Ganfeng Lithium, a Chinese competitor, which sold shares in Hong Kong for the first time last week.(Lithium - Ion Battery Equipment)

However, investors did not immediately waver because of this, but worried that a large number of new suppliers would enter the market in the short term, leading to a fall in the price of lithium materials in 2018. In the previous three years, the price of lithium materials has tripled.

According to Benchmark Mineral Intelligence, in South America, the price of lithium carbonate fell from a record high of $157,500 per ton in June to $14,500 per ton in September. According to the calculation of the research company, the price of lithium carbonate in the main markets of South America has risen by 208% in the three years ended December 31 last year, but has dropped by 8.2% since this year.

On October 11 local time, the closing price of the Philadelphia based Live Company was basically the same as the opening price, while the stock price of Ganfeng Lithium fell 29% on the first day of its listing in Hong Kong. The analyst of Argonaut Securities said, "The poor performance of lithium producers in the stock market reflects the lack of confidence in the lithium market in the near future. We believe that the market does overreact to the current lithium material price, ignoring the growth prospects of its demand."

Graves, 47, said that some companies are trying to raise funds for expansion, while others are facing regulatory obstacles, which have led to a bleak outlook for lithium material supply. "Our next priority is to expand the production in Argentina as soon as possible to meet downstream demand." Graves was the chief financial officer of FMC Group and also worked for Goldman Sachs Group for 12 years.

Wang Xiaoshen, vice president of Ganfeng Lithium, said that in the long run, there is a risk of shortage of lithium materials, especially from 2023 to 2024, when the production of electric vehicles may accelerate.

Bloomberg New Energy financial analysts said that after the mining disaster in Australia, the price of lithium materials and the share price of its manufacturers fell as the lithium material industry entered a period of oversupply. However, by 2024, the lithium industry may shrink again.



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