The lithium supply shortage that has car and battery makers scrambling to secure equity in mines is set to continue for at least the rest of this decade and into the 2030s, according to a key adviser to the London Metals Exchange.many new mines would be needed,Global Lithium managing director Ron Mitchell inspects some diamond drill cores at the company’s Manna project in WA.
“There’s challenges around the shelf-life of the material that make it hard for physical trading as well. Global Lithium listed on the ASX in May last year after a $10 million initial public offering and is now a $506 million company with shares issued at 20¢ hitting a high of $2.93 this month. The company has two lithium projects in WA, where it is charging ahead with exploration and, if all goes to plan, could have at least one asset in production by late 2025.
Mr Mitchell expects the trend of car makers taking equity positions in lithium producers and explorers, as demonstrated by Toyota with Allkem, Ford with Liontown and Great Wall with Pilbara Minerals, to continue and extend to other battery minerals. The only off-take agreement so far covers 30 per cent of any spodumene concentrate production and is with China’s Suzhou TAA, which owns nearly 10 per cent of Global Lithium and has a controlling stake in lithium hydroxide maker Yibin Tianyi.Chris Ellison’s Mineral Resources this month lifted its stake in Global Minerals from 5.1 per cent to 8 per cent.
they predicted boom in 2018 then in 2020 it crashed Now it is bouncing again When the price is under $1200/ton they go bust