With increasing demand for lithium, the world could run into a massive supply crunch. All on the heels of the electric vehicle boom. In fact, EVs could dominate demand for lithium over the next 10 years, reports Reuters, accounting for more than 75% of the lithium’s consumption.
According to Reuters, “the electric vehicle industry must pay more for lithium in order to spur investment and prevent future supply crunches of the battery metal, the chief executive of lithium producer Livent Corp said. If every EV company took their 2023 plans and went to the lithium market today, they’d probably only get about 15% of their needed supply of lithium.”
Helping to fuel the boom, Tesla just signed a lithium ore supply deal with Piedmont Lithium, prompting a 345% rally in small lithium stock. “The initial five-year agreement implies that Piedmont will supply about a third of its planned 160,000-tonnes-per-year spodumene concentrate produce from its deposits in North Carolina. Both companies have an option to extend the deal for another five years,” added Reuters.