Demand for lithium is rising continuously in the automotive industry. Lithium is the significant component used by a lithium carbonate battery grade supplier for making lithium-ion batteries. The metal is utilized in a broad range of industrial applications such as greases, ceramics and glass. However, it is the usage of lithium as a critical element in the batteries that provide power to electric and hybrid electric vehicles that have such exciting markets.
Lithium does not occur naturally. Instead, it is found in a variety of mineral salts that need to be processed chemically for making the lithium chemicals and compounds require by an industry. Various lithium compounds are utilized by trade, but it is lithium carbonate that is the most critical form of lithium; constitute more than 50portant per cent of total demand. Often. Lithium industry expresses lithium production and trade in the units of lithium carbonate equivalents (LCE).
Electric vehicles depends partially or wholly on electricity stored in batteries as their main source of energy. Therefore, it is highly expected that road transport will be revolutionized and the demand for lithium carbonate batteries will rise exponentially. China will be the front runner of the battery production battle.
China has already been considered as the world’s largest market for electric vehicles (EVs). Nearly half of the global sales are accounted for in China. This trend is forecasted to be continued in the coming years. Government support towards production and development of electric vehicles will increase the demand of both lithium carbonate and lithium hydroxide.
China is currently relying on imported raw materials with several Chinese producers use concentrated spodumene. A spodumene is a form of mineral mainly exported by Australia for the production of different products including lithium carbonate.
Strong demand for lithium over the past few years has seen high-cost Chinese manufacturers going for imported spodumene set the marginal price. This has been surfaced out in the average rate of imported lithium carbonate. Lithium carbonate has doubled over the last year.
The rising increase in the production of batteries will see steep demand for metals like nickel, cobalt and lithium. Lithium carbonate is currently the dominant metal used by almost every lithium fluoride high purity supplier in making batteries. The scale at which production capacity for EV batteries is expected to increase further. The forecast is that EV battery capacity will grow nearly by five times till the year 2022for meeting the demands of both local and international vehicle manufacturers. Chinese producers have ramped up the production and development of PHEV and BEV vehicles for compliance of new policy.
Above numbers and facts simply suggest that lithium as a metal has a bright future in the vehicle’s battery industry.