Go back

Is there a growing interest in lithium?

Team Veye | 07-Nov-2021 growing interest in lithium
Get your Free Report on Top 5 ASX stocks for 2024

Demand for lithium has been driven primarily by the need for alternatives to fossil fuels and advances in electric transportation. The importance of lithium is further accentuated by the increased use of battery power, expected to play a major role in facilitating the shift from the world’s reliance on fossil fuels towards clean energy sources. 
Interest in lithium continues to grow due to its role in the lithium-ion batteries that power electric cars, and attention is landing on the top lithium-producing countries. 
Another factor that can drive demand for lithium far into the future could be the news that Tesla was likely to change the type of battery cells it uses in all its standard-range cars and the new batteries will use a lithium-iron-phosphate (LFP) chemistry rather than nickel-cobalt-aluminum which Tesla will continue to use in its longer-range vehicles.
About 65 percent of the lithium produced currently goes toward battery production, and other industries consume the metal in much smaller proportions, like 18 percent of lithium in ceramics and glass, while 5 percent goes to lubricating greases.
Australian miners are in a perfect position to take advantage of the surge in demand as Australia is the world's biggest producer and exporter of lithium.
Australia holds over 2.7 million MT of identified lithium reserves, according to the US Geological Survey, which puts it just behind Chile.
Pilbara Minerals, a lithium miner in Western Australia, that until recently had dropped its operation down to 30 per cent production after lithium prices began falling in 2018 before bottoming out last year is now back at 100 per cent capacity, with expansion work underway. 
It is anticipated that lithium-ion battery producers and EV manufacturers will 
continue to play a more active role in sourcing lithium chemicals and spodumene concentrate in coming years under long term purchase agreements.
 

Disclaimer

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 www.veye.com.au), 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

(+61)

DIVIDEND
INVESTER REPORT

Dividend-Investor-Report

Each week we cover companies offering a good combination of growth & dividends, maintaining a balance between stable 'cash flow' and risker 'raising stars'. Our guidance helps you choose companies with regular dividends and opportunities for lower-risk capital growth.

  • The best High Yield Dividend Stocks picked by our team of analysts every week.
  • Detailed in-depth Analysis with our expert Recommendations Buy, Hold or Sell.
  • Free Daily Analysis Report to keep up with the latest on what's hot and what's not.
  • Gain instant access to a wide range of Dividend Share Reports, exclusive to members only.
Frequency: Every Tuesday
Subscribe Now