Not only chip manufacturers, the automotive industry also needs more supply of lithium in the manufacture of electric cars. Global demand for lithium last year alone stood at around 320,000 tonnes.
According to Reuters on Thursday (2/12), most industry consultants expect lithium demand to reach 1 million tons by 2025 and 3 million tons by the end of the decade. Therefore, automakers must work more closely with lithium manufacturers to ensure supply.
Mainly for the type of white lithium that increases the range and performance of electric vehicles. Thus, manufacturers require extensive investment and planning.
Albemarle’s lithium division Eric Norris and Livent Chief Executive Paul Graves said they were willing to work together if the automakers signed long-term contracts and shared development plans.
“It’s really important for us to have the kind of relationship and transparency with car manufacturers so as not to put them in a situation where they don’t have the product they need,” Norris said.
Without such coordination, the auto industry may not have enough lithium needed to make electric vehicles last longer.
“There may be periods where there’s not enough lithium available to meet what every automaker is trying to do,” Graves said. General Motors Co, Stellantis NV and others signed supply agreements this year with direct lithium extraction (DLE) startups that promise sustainable lithium production.