Electric Vehicles Are Expected to Drive Massive Demand for Lithium and Cobalt
Deutsche Bank Markets Research has reported that global lithium demand is likely to jump from 181kt Lithium Carbonate Equivalent (LCE) in 2015 to 535kt LCE over the next decade. The report cites the growing number of electric vehicles (EVs) as the primary driver of demand for lithium. Overall battery consumption is anticipated to multiply five times over by 2025, meaning that supply chains and markets are preparing for massive strains.
Though EVs are a major reason for the shift, the growing demand for battery-hungry tech, like smart phones and laptops, is also to blame. Pushes from large vehicle markets like China remain some of the biggest drivers of lithium and cobalt demand. It’s now standard to require manufacturers of vehicles and batteries to sign deals to secure raw minerals up to ten years in advance. In anticipation of shortages and future difficulties, companies like VW are partnering with nation states to ensure smooth, consistent procurement of essential materials like cobalt and lithium.