According to data compiled by Mordor Intelligence, the global lithium market is expected to grow at a CAGR of 9.33% during the forecasted period from 2018 to 2023. The Asia-Pacific region is expected to lead the market due to its rapid growth in electric vehicles and consumer electronics. EVs and consumer electronics have both adopted the usage of lithium-ion batteries due to their high energy density, ability to recharge and environmental efficiency. The aspects of the batteries have made them attractive for electronic manufacturers and the automotive industries, causing demand to skyrocket. Currently, consumer electronics control the majority of the battery market capital, but it is expected for EVs to dominate the market in the near future. MGX Minerals Inc. MGXMF, +0.33% NRG Metals Inc. NRGMF, -3.48% Dajin Resources Corp. DJIFF, -1.40% BYD CO. Ltd. BYDDF, -0.53% BioSolar Inc. BSRC, -11.84%
The shift from diesel-powered vehicles to EVs has driven the lithium market significantly. The market is being accelerated by the government’s adoption of the batteries, requiring automotive manufacturers to transition to an eco-friendlier alternative. However, the supply has been outpacing demand, causing prices to increase. Since the current state of lithium is very limited, auto manufacturers are beginning to lock-in lithium suppliers. “Much of the excitement is due to the rise in electric vehicles (EVs) and hybrids, and although there is no futures market in Lithium – prices are set in long-term contracts – buyers have to contend with a bullish supply market as battery makers scramble to cover forward under long-term agreements, as the rise in prices affirms,” said Stuart Burns, Market Analyst at Metal Miner.