lithium suppliers struggle to meet surging demand - lithium battery manufacturers

Near the dead volcano known as montpeys, high in the Andes of Chile --
On the Argentine border, the air is scarce and the animals live scarce.
This is also a prime location for lithium.
White metal for the production of lithium-ion batteries.
According to Sam Pelaez, an analyst with our team, who recently visited the deposit, seasonal melting of snow peaks collects lithium, sodium and other minerals from soil and underwater hot springs, all of which flow to the apartment and settle down
Therefore, the name salares in the salt apartment or in Spanish.
For a long time, as the seasonal temperature changes, the salt forms a layer of shell at the top of the "lake", forming an amazing landscape.
Under the crust is a high concentration of lithium.
To extract lithium, salt water is pumped into large evaporation pools, resulting in higher metal concentrations, Sam said.
The brine is then transported by truck to a facility that uses chemical and metallurgical processes to extract lithium.
Lithium carbonate or hydroxide is sold to battery manufacturers including Tesla.
Speaking of the deposit, Sam said: "This is probably the most remote place I 've ever been . ".
What is called the 3Q project is a five-
Fiambala, the nearest township in katamaka Province, Argentina, is an hour's drive away.
The province and its neighbors are known not only for lithium-salt apartments and gold mines.
3Q project developed by Toronto-
Based on Neo Lithium, one of the largest salares found in recent decades, impurities are very low compared to other lithium ore beds in the world.
Waldo Perez, president and CEO of Neo Lithium, believes that the project is likely to be considered highgrade.
"The salt water found in the open reservoir has a low chemical composition
In the process of cost evaporation, it contains potash fertilizer as a valuable by-product
"Products and lithium grades are equal to or superior to all other known untapped projects and many production mines," said Perez . ".
In the last January S, Tesla began mass production of lithium.
The ion battery at one of them. 9-million-square-
Foot Gigabit factory in Reno, Nevada.
With the cooperation of Panasonic, the company hopes to produce
By 2018, the annual battery capacity reached 35 gigawatts, which is about the same as the current total battery capacity in the rest of the world. (
By the way, gigawatts equals 1 billion watts. )
Co-founded by successive entrepreneurs and all-in 2003
Around the genius Elon Musk, Tesla is arguably the world's leading company involved in the production of energy storage devices.
But definitely not the only one.
China Contemporary Amperex Technology Co. , Ltd.
In terms of battery production, Tesla is making rapid progress and plans to surpass Tesla by 2020.
By that year, nearly 85% of lithium
Any country in the world will produce ion batteries. S.
Goldman Sachs expects the Chinese battery market to climb to $40 billion by 2025.
Worldwide, almost 40% of lithium supplies are used in battery production, including batteries that power battery electric vehicles (BEVs).
Therefore, there is no doubt that the demand for lithium is being driven by BEVs, whose sales are expected to rise from 0.
According to Morningstar, it was 3 million in 2015 and 11 million in 2025.
According to data from Bloomberg New Energy Finance, by 2040, BEV sales may reach 41 million vehicles, accounting for 35% of all new car sales.
"We expect sales of electric and hybrid vehicles to drive lithium demand up 16% a year over the next decade, faster than almost any major commodity in the past century," wrote Morningstar analyst David Wang: "from about 175,000 tons in 2015 to about 775,000 tons in 2025. ".
Wang continued: "Each electric vehicle uses about 28,000 grams of lithium in the battery, about 4,000 times the 7 grams of lithium used in smartphones.
Each hybrid uses about 1,900 grams, about 270 times that of a smartphone. ”(
Electric cars and hybrid cars also need more copper than traditional cars.
Tesla Model 3 uses three times more copper wiring than vehicles using internal combustion engines. )
Morningstar estimates that lithium supply will be difficult to keep up with growing demand in the coming years, resulting in 105,000-
Deficit of metric tons by 2025This supply-
Demand imbalance could raise the price of lithium significantly, Wang said, "from the current $6,500 per metric ton to $10,000 in 2020 . "
At present, the world's lithium production is mainly controlled by four companies: North Carolina-
Headquartered in Albemarle, Philadelphia
Headquartered in Chile, FMC, quimica y Minera in Chile and Tianqi Lithium in China.
According to Morningstar, Albemarle has the highest exposure to lithium.
Just this month, the company raised its forecast for lithium demand at the end of the decade, saying it would grow from the previous 30,000 tons to 20,000 tons a year.
Lithium stocks have maintained a steady upward trend for 12 months, exceeding 200-
Daily moving average.
China is catching up.
It has the biggest advantage over America. S.
It can get lithium.
According to the United States, this Asian countryS.
Geological Survey is the fourth
The largest producer produced 2,000 metric tons in 2016 alone.
According to the International Energy Agency (IEA)
China has already led the world in the number of electric two-in-one
Fleet of wheels and buses.
In the market's favor, Beijing recently called on auto companies to double their battery capacity from now to 2020.
BEV ownership also gives Chinese citizens the right to waive purchase tax and consumption tax worth 35,000 to 60,000 yuan or 5,000 to 9,000 US dollars. (In the U. S.
The tax credits for buying BEV range from $2,500 to $7,500. )
At the same time, President Donald Trump ordered a review of the average fuel economy of the Enterprise (CAFE)
Since 1975, standards have required a gradual increase in fuel economy for cars and light trucks.
The average fuel economy is 31.
As of February, it will take up to 54 miles per gallon. 5 by 2025.
Reversing the CAFE standard means that automakers can produce cars with lower fuel economy at a much lower price than hybrid and BEVs.
This is a threat to BEV demand.
Ultimate Lithium
Since the price of the Tesla Model 3 is usually high, the starting price is $35,000.
However, as with all new technologies, prices may fall sharply over time.
2022, cost of battery-
Power cars are expected to be comparable to internal combustion engines.
In response to Trump's opposition to fuel economy regulation, about 30 AmericansS.
Cities, including New York, Los Angeles and Chicago, reportedly plan to spend up to $10 billion on new electric vehicles for police cars, garbage trucks, street sweepers and more.
The move is intended to show automakers demand for BEVs, which bodes well for lithium.