Abstract
The Economics of Lithium, 11th edition 2009
Consumption of lithium increased by over 8%py between 2003 and 2007 but growth
slowed in 2008 to just 4%. The major industrial markets for lithium -
ceramics, glass, aluminium, greases and rubber - have all benefited from high
rates of GDP growth in emerging markets, increasing overall lithium
consumption. However, the main driver of lithium demand has been its use in
rechargeable batteries. Demand for portable consumer goods in both developed
and developing countries accelerated in the middle part of the decade and
production of lithium secondary batteries grew by 25%py between 2000 and 2007.
Consumption of lithium in batteries increased in-line with battery production
and now accounts for 20% of total lithium consumption, up from 6% in 2000.
What the report gives you
- Independent, in-depth research and analysis
- Essential market intelligence for successful business planning
- Detailed survey of production and processing in 40 countries
- Up-to-date profiles of the activities of 58 producing and processing
companies
- Forecasts for end-use consumption and world supply and demand
Report highlights
World production of lithium reached 22,800t Li in 2008, up from 13,000t Li in
2000. Most of the growth in output has come from three countries: Argentina,
Australia and Chile, which together accounted for 82% of total lithium
production in 2008. Supply of lithium is dominated by producers of lithium
from brines in the Americas - SQM, Chemetall and FMC Lithium - and by the sole
lithium mineral producer in Australia - Talison Minerals. China has increased
its domestic production of lithium minerals and lithium from brines by 15%py
since 2000, as new projects have been developed, although China accounted for
only 8% of total global lithium production in 2008.
Tightness in available brine production capacity in South America in the
mid-2000s, and problems with ramping-up production from brines in China,
prompted a resurgence in the conversion of lithium minerals to compounds.
Lithium compounds produced by conversion from lithium minerals satisfied 15%
of lithium compound demand in 2008. China has become the major source of
lithium compounds produced by this method, using both domestically produced
and imported lithium minerals.
The higher cost of the lithium minerals conversion process compared to brine
production of lithium has impacted on lithium prices. Prices for lithium
carbonate more than doubled between 2004 and 2008 to just under US$5,500/t.
The outlook for lithium consumption to 2013 is optimistic, particularly as
lithium secondary batteries for automotive uses are now reaching
commercialisation. Nevertheless, as the global economic downturn continues
there is likely to be an impact on the supply, demand and price fundamentals
for lithium in the short-term.
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