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EVs driving lithium demand even higher

Posted on 16 November, 2017

The Global Lithium-Ion Battery Market is expected to reach $46.21 billion by 2022, according to a report by Allied Market Research.   Lithium-ion batteries are rechargeable batteries with high energy density and are mainly used in portable equipment.  The report reports that the market for these batteries is expected to reach significant growth due to the increasing demand for electric vehicles.  The increasing popularity of lithium is largely to do with technologically innovating companies. Tesla is a prime example who plays a major role in the lithium industry. Recently an agreement between the Australian Government and Tesla was made, whereby Tesla will build the world's largest lithium-ion battery to store renewable energy in South Australia. Tesla's CEO, Elon Musk, explained how the battery will work and its benefits. "You can essentially charge up the battery packs when you have excess power when the cost of production is very low; and then discharge it when the cost of power production is high, and this effectively lowers the average cost to the end customer. It's a fundamental efficiency improvement for the grid." The massive demand for global lithium is already sending shocks throughout industries. There are already expectations of a significant shortfall in the very near future. To answer the heavy demand, lithium companies are increasing their production capacities and searching for new sources of lithium. This includes a number of early stage lithium mining companies who are using the market's momentum to advance more quickly toward production.