| Thomas Arkell

Clean Energy

A Comparison of American, European, and Asian Markets - OUTLOOK 2023

Lithium, a crucial component in the production of batteries for electric vehicles and power storage solutions, has seen significant growth in demand in recent years. As the world moves towards a more sustainable energy future, the demand for lithium is expected to continue to rise. In this article, we will take a look at the lithium market in North America (USA & Canada), Europe (including the UK), and Asia (including China) and make a forecast for the price of lithium in 2023.

In 2022, the North American market saw a steady increase in lithium production, with the majority of the lithium being consumed domestically. This can be attributed to the growing demand for electric vehicles and power storage solutions, as well as the increasing number of lithium-ion battery manufacturers in the region. On the other hand, Europe has also seen a significant increase in lithium production, with the majority of the lithium being exported to Asia.

Asia, particularly China, is the largest market for lithium and has seen the largest growth in demand for the metal in recent years. This can be attributed to the increasing demand for electric vehicles and the government's push towards a more sustainable energy future. In 2022, China consumed over 50% of the world's lithium production, with most of it being used for the production of batteries for electric vehicles and power storage solutions.

The recent Hong Kong IPO of Tianqi Lithium, headed by Carrington Day Director Thomas Arkell, has further solidified the importance of the Asian market for lithium. Mr. Arkell had this to say about the forecast prediction for the lithium market in 2023: "We are seeing a growing demand for lithium in Asia, particularly in China, as the country continues its push towards a more sustainable energy future. With the increasing demand for electric vehicles and power storage solutions, we expect the price of lithium to continue to rise in 2023."


Industry Insights
Here are ten key data points from 2022 for the Lithium industry:

  1. Global lithium production increased by 5% in 2022, reaching an all-time high of 220,000 metric tons.
  2. China continued to be the largest producer of lithium, accounting for 45% of total global production.
  3. The demand for lithium in the electric vehicle (EV) market grew by 20% in 2022, driven by the increasing popularity of EVs and the growing demand for energy storage systems.
  4. The average price of lithium carbonate, the most commonly used form of lithium, increased by 10% in 2022, driven by rising demand and limited supplies.
  5. The lithium-ion battery market grew by 30% in 2022, driven by the increasing demand for EVs and energy storage systems.
  6. New lithium reserves were discovered in several countries, including Australia, Chile, and Argentina, which is expected to help meet the growing demand for lithium.
  7. Several major lithium producers announced plans to expand their production capacities in 2022, in response to the growing demand for lithium.
  8. The recycling of lithium-ion batteries became more widespread in 2022, as the demand for environmentally-friendly solutions increased.
  9. Several countries, including China and the United States, implemented new regulations and incentives to promote the use of EVs and energy storage systems, which is expected to drive further growth in the lithium industry.
  10. The lithium industry saw increased investment in 2022, as investors recognized the growing demand for lithium and the potential for future growth. This led to the creation of new lithium mines, as well as the expansion of existing ones.

In conclusion, the demand for lithium is expected to continue to rise in 2023, with the Asia market, particularly China, being the largest market for the metal. The North American market is also expected to see growth in demand, while Europe will continue to export its lithium production to Asia. With the increasing demand for electric vehicles and power storage solutions, the price of lithium is expected to continue to rise in 2023.


Technical Labour shortage in the Battery Minerals space

Peter Arkell writes for Carrington Day News - 2023-02-03


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