How Lithium mining in Australia is coming of age?

Team Veye | 14-Sep-2020 Lithium mining

Australia is among the top three countries with Lithium reserves. In 2019, Chile had the largest lithium reserves worldwide. It had an estimated 8.6 million metric tons of lithium reserves with Australia coming in second, having reserves estimated at 2.8 million metric tons. Australia was, though, the top country in terms of lithium mine production in 2019.

Lithium though used primarily in batteries, glass and ceramics, has other uses including rocket fuel and lasers. Lithium carbonate is also known as a common treatment of a bipolar disorder, helping to stabilize wild mood swings caused by the illness.

The increasing awareness towards clean energy and other environmental issues has many consumers favouring electric vehicles because of their environmental footprint, lower maintenance costs and vehicle performance. In 2019, the number of electric vehicles in the country tripled after the introduction of the successful Tesla Model 3. Tesla is believed to import much of the lithium it uses from Australia and South America.

The global lithium battery market is projected to grow substantially in the coming years, from 30 billion U.S. dollars in 2017 to over 100 billion U.S. dollars by 2025. The electric vehicle market will propel the growth of the lithium market as the number of hybrid and electric vehicles powered by rechargeable lithium batteries picks up.

Lithium-ion batteries have a high power-to-weight ratio, high energy efficiency and good high-temperature performance. In practice, this means that the batteries hold a lot of energy for their weight, which is vital for electric cars – less weight means the car can travel further on a single charge. Lithium batteries can withstand charge/discharge cycles better than a lead-acid battery.

Australia lags behind the developed world in transition to clean and green electric cars. However, according to a new survey, more Australian buyers than ever before would consider an electric vehicle as their next car purchase. Most states are also working to outline their own individual roadmaps to encourage electric vehicle uptake.


Veye Pty Ltd(ABN 58 623 120 865), holds (AFSL No. 523157 ). All information provided by Veye Pty Ltd through its website, reports, and newsletters is general financial product advice only and should not be considered a personal recommendation to buy or sell any asset or security. Before acting on the advice, you should consider whether it’s appropriate to you, in light of your objectives, financial situation, or needs. You should look at the Product Disclosure Statement or other offer document associated with the security or product before making a decision on acquiring the security or product. You can refer to our Terms & Conditions and Financial Services Guide for more information. Any recommendation contained herein may not be suitable for all investors as it does not take into account your personal financial needs or investment objectives. Although Veye takes the utmost care to ensure accuracy of the content and that the information is gathered and processed from reliable resources, we strongly recommend that you seek professional advice from your financial advisor or stockbroker before making any investment decision based on any of our recommendations. All the information we share represents our views on the date of publishing as stocks are subject to real time changes and therefore may change without notice. Please remember that investments can go up and down and past performance is not necessarily indicative of future returns. We request our readers not to interpret our reports as direct recommendations. To the extent permitted by law, Veye Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss, or data corruption) (as mentioned on the website, and confirms that the employees and/or associates of Veye Pty Ltd do not hold positions in any of the financial products covered on the website on the date of publishing this report. Veye Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services.

veye logo

Grab Your Free Report On 5 ASX Dividend Stocks To Buy In 2024