Need for technology minerals rises as prices soar

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The sectors mining these industries are “young and niche” and not commoditised yet, says London-based research firm Benchmark Mineral Intelligence director Simon Moores.

Similarly, advisory firm Global Lithium president Joe Lowry expects global demand for lithium carbonate to rise to between 260 000 t/y and 280 000 t/y by 2020, from about 163 000 t/y in 2015. Larger spikes are expected after 2020, according to risk management consultancy PGI Intelligence’s latest 2016 ‘Insight’ report. However, there are shortages currently in the lithium industry, which are expected to become severe by the end of this year, owing to demand from Asia, particularly China, for lithium-ion battery production, Moores explains. Consequently, the price of the mineral has soared, doubling outside China in the past six months. The lithium carbonate price ranges from $10 000/t to $12 000/t, while the lithium hydroxide price is about $14 000/t. In China, the lithium hydroxide price reached its highest level – $30 000/t – during the first quarter of this year.

Meanwhile, Smith notes that the low price of oil is leading to questions about the projected high demand for EV sales, adding that the evolution of efficient mineral recycling and disruptive technologies, such as driverless cars will, ultimately, owing to fewer cars, reduce the need for lithium-ion batteries. Consequently, not as much lithium needs to be mined for virgin, or raw, material, Smith suggests. She points out that there were about 80 lithium projects worldwide in 2009 and less than half that number by 2011, as it did not appear that the lithium industry would take off as expected. “Now, for the first time, it is valid to expect that EVs will be propelled by lithium-ion batteries. Consequently, more projects are starting up again . . . however, the majority of them will not be realised, as only low-cost, sizeable and quality-grade projects will be realised.” More than half the earth’s identified lithium resources are in South America’s so-called lithium triangle – Chile, Argentina and Bolivia – as well as in Australia.

Need for technology minerals rises as prices soar

What you need to know:

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