Lithium miners are concentrating on expanding production capacity as demand for electric vehicles surges.

Capacity Enhancement

Albemarle Corporation (NYSE: ALB) increases production in Chile.

Albemarle Corporation, a prominent global lithium producer, has declared its intention to expand lithium production at its La Negra facility in Antofagasta, Chile. The expansion will increase the company’s annual production capacity for lithium carbonate equivalent (LCE) by approximately 20,000 metric tons. The move is intended to satisfy the growing demand for lithium as the market for electric vehicles (EVs) expands rapidly.

SQM (NYSE: SQM) increases lithium output in Argentina.

SQM, a mining company based in Chile, has declared its intention to increase lithium production at its Cauchari-Olaroz project in Argentina. The company intends to increase its current lithium production capacity of 40,000 metric tons of LCE to 60,000 metric tons by 2025. This expansion is anticipated to strengthen SQM’s position as the region’s foremost lithium producer.

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New Projects

Western Australian lithium project is purchased by Pilbara Minerals (ASX: PLS).

Pilbara Minerals, an Australian lithium mining company, has acquired the Altura Lithium Project in Western Australia. The acquisition increases the company’s lithium resource base and bolsters its position on the global lithium market. Pilbara Minerals intends to combine the Altura Lithium Project and its existing Pilgangoora Lithium-Tantalum Project to establish a lithium operation of world-class caliber.

Lithium Americas (NYSE: LAC) advances its Nevada Thacker Pass project

Lithium Americas has reported significant development progress at its Thacker Pass lithium facility in Nevada, United States. The United States issued crucial permits to the company. Bureau of Land Management, allowing the operation to proceed. It is anticipated that the Thacker Pass plant will produce up to 60,000 metric tons of LCE annually, making it one of the largest lithium operations in North America.

Market Projection

Roskill predicts the demand for lithium will triple by 2030.

Roskill, a global research and consulting firm, forecasts that lithium demand will triple by 2030, propelled primarily by the electric vehicle market. The surge in demand is anticipated to result in a supply deficit, with lithium prices remaining high over the next several years. To satisfy the growing demand, lithium producers are anticipated to make substantial investments in capacity expansion and new projects.

Benchmark Mineral Intelligence forecasts a tenfold increase in lithium-ion battery demand.

Benchmark Mineral Intelligence, a leading data provider for the lithium-ion battery industry, forecasts a tenfold increase in lithium-ion battery demand by 2030. The growth in demand is anticipated to be driven by the transition to renewable energy storage systems and the widespread adoption of electric vehicles. This trend emphasizes the vital role that lithium miners play in supplying the necessary raw materials for the renewable energy revolution.

What’s New With Lithium Miners In March 2023?

According to multiple sources, lithium chemical and spodumene spot prices declined significantly in March 2023, particularly in China. Additionally, Seeking Alpha published a report on lithium junior miners news for March 2023.

The lithium industry is anticipated to experience increased investment, innovation, and competition over the next decade, as market forecasts predict a significant increase in lithium demand. Stay up-to-date on the most recent developments in the lithium mining industry as we continue to track the industry’s progress in meeting the global demand for this vital element in renewable energy technologies.

Lithium chemical spot prices have decreased substantially, as have spodumene spot prices[3]. The collapse of lithium carbonate market prices in China has resulted in a drop of fifty percent from their peak.

Regarding mining companies, Mineral Resources has announced intentions to commission a POSCO/Pilbara Minerals JV LiOH facility in Korea by the end of 2023. Mt Marion Mine (50% MIN: 50% Ganfeng) and Wodgina Lithium Mine (50% ALB: 50% MIN) are the company’s lithium assets. Greenbushes will supply the 50ktpa Kemerton Lithium Hydroxide refinery trains 1 and 2 (85% ALB: 15% MIN).

Allkem, a producer of lithium, revealed that its Olaroz resource increased by 27% to 20,7 million tonnes LCE. The corporation is well on its way to becoming a large-scale lithium producer with strategic locations.

What Is The Anticipated Demand Growth For Lithium In The Coming Years?

According to the International Energy Agency’s (IEA) forecast for 2021, the future demand for lithium is expected to increase significantly, with a 13x to 42x increase between 2020 and 2040. McKinsey & Company, a global management consulting firm, forecasts that revenues along the entire lithium-ion battery value chain will increase fivefold between 2022 and 2030, from approximately $85 billion in 2022 to over $400 billion. Concerns exist, however, that the current supply of lithium may not be sufficient to meet the rising demand, as production of the battery metal is expected to nearly triple by 2025 to more than 1.5 million metric tons. 

As the global demand for lithium-ion batteries continues to increase, driven by the rapid expansion of the electric vehicle (EV) market and the renewable energy industry, lithium miners are rising to the occasion. In this month’s lithium miners news, we discuss the most recent industry developments, including announcements of capacity expansion, new projects, and market forecasts.

Lithium-producing giant target?

Albemarle has set a sales target for 2023 of $9.9 billion, a 36% increase from its estimated revenue for 2022 [4]. Consequently, the outlook for lithium miners in the future months is uncertain and dependent on a number of variables, including demand, supply, and market conditions.

New Projects

Western Australian lithium project is purchased by Pilbara Minerals (ASX: PLS).

Pilbara Minerals, an Australian lithium mining company, paid $175 million for the Altura Lithium Project in Western Australia. The acquisition increases the company’s lithium resource base and bolsters its position on the global lithium market. Pilbara Minerals plans to combine the Altura Lithium Project with its existing Pilgangoora Lithium-Tantalum Project to establish a world-class lithium operation with an annual production capacity of over 100,000 metric tons of lithium carbonate equivalent (LCE).

Lithium Americas (NYSE: LAC) advances its Nevada Thacker Pass project

Lithium Americas has reported significant development progress at its Thacker Pass lithium facility in Nevada, United States. The United States issued crucial permits to the company. Bureau of Land Management, allowing the operation to proceed. It is anticipated that the Thacker Pass plant will produce up to 60,000 metric tons of LCE annually, making it one of the largest lithium operations in North America. 

The lithium mining industry is preparing to meet the rising demand for lithium, which is being propelled by the rapid expansion of the electric vehicle (EV) market and the global shift toward renewable energy. The announcements of capacity expansion and new projects highlighted in this month’s lithium miners news demonstrate the industry’s commitment to meeting the increasing demand for lithium-ion batteries.