It’s All About Lithium
The race is on; the time is right; it’s truly all about lithium.
The consumption of lithium is expected to increase tenfold by 2030. This considerable rise will also take its toll on the existing lithium mines, mainly in Australia and Chile. The solution: construction of new mines. Currently, Chile is known as having the largest reserves of lithium in the world. However, further resources are found, and new mines are opened every year.
Early in 2020, for instance, the largest national lithium mine started its excavation in Nevada, USA. This mine is located on a collapsed volcano. Despite many local protests and the controversy surrounding this mine, the United States badly needs lithium for expanding its electric cars industry.
Lithium Applications
One of the main applications of lithium is in Li-Ion batteries. Lithium is the lightest metal; it can store large amounts of electricity and be charged and de-charged multiple times. This makes it the perfect candidate for the new generation of batteries used in a wide range of products, from cellphones to electric cars.
The automotive industry
One of the most critical applications of lithium is in the automotive industry. The electric vehicle industry is booming, and with it, the demand for bigger, more efficient batteries is rising.
Consumer electronic goods
The second most common application of lithium is in consumer electronic goods. From mobile phones to tablets, smart gadgets, and laptops, almost all the technology we use in our everyday lives has a lithium-ion battery at its heart.
Glass and ceramics
Additionally, lithium is used in the glass industry. When added to ordinary glass, lithium makes the glass more durable and more resistant to thermal shock. This kind of glass is used in medical equipment as well as oven-proof kitchenware. Lithium added to ceramic makes heat-proof ceramic dishes for this kitchen. It presents the ceramic plates to expand in extreme hears and therefore crack in the oven. This application, although less than the use of lithium in batteries, is essential.
Grid-scale batteries
With the advent of solar panels, the need for grid-scale batteries rises as well. This is because solar panels are not able to power a house or a city 24/7. In the hours of darkness, when there is no sun to power the grid, the batteries will have to kick in and supply the houses with power. What’s more, gird scale batteries are used in conventional power plants as well. These batteries can support the power plant in peak usage hours or when there is a heatwave.
Major lithium mining companies around the globe
Albemarle (ALB)
Albemarle is a company based in Charlotte, USA. This company is a producer of specialty chemicals, the most important of which are different lithium variations. Albemarle’s lithium compounds include lithium carbonate, lithium hydroxide, lithium chloride, and other specialty by-products of lithium.
Albemarle has 5,400 employees in sites from 100 different countries. These countries are located in North and South America, Europe, Africa, Asia, and Australia. This company intends to grow its lithium business through a zero-carbon method by 2030.
The revenue for Albemarle is estimated to be 3.24 billion dollars by the end of 2021. This revenue has experienced a 3.6% increase since the previous year. According to analysis, the revenue for Albemarle will increase by 15.20% by the end of 2022.
The stock for Albemarle is traded for $186.62 per share. This stock is expected to grow by 25.61% per year in the next five years.
Livent Corporation (LTHM)
Livent has been delivering lithium-based compounds for over 60 years. This company produces battery-grade lithium hydroxide for high-performance batteries. In 1991, Livent dealt with Sony Corporation to provide this company with lithium raw material to create the first lithium-ion batteries. Since then, this company has cooperated with several other lithium producers and had made considerable progress in the lithium mining and production industry.
The revenue for Livent has been analyzed to be 364.69 million dollars by the end of 2021. This revenue has increased by 25% since 2020 and is predicted to reach 436 million dollars by the end of 2022. The stock for Livent is currently sold for $19.55 per share. This stock is expected to grow by 48% per year in the next five years.
SQM (SQM)
SQM is headquartered in Santiago, Chile, and was founded in 1968. SQM is mainly a specialty chemicals company, and other than lithium, its other products include nitrates, sodium nitrates, potassium, and its variants.
SQM has done lithium mining projects in Chile, Australia, Argentina, Dubai, China, India, and several other countries. The lithium variants that SQM produces are lithium carbonate and lithium hydroxide.
In 2021, this revenue for this company is estimated to be 2.23 billion dollars which have increased by over 22% since 2020. The stock price for SQM is $49.26 per share. This stock was $29.56 last year this time and is forecasted to grow by 19% per year in the next five years.
Tianqi Lithium (SZ)
Tianqi is an energy material based in China. The main product for this company is lithium and its variants. The mines from which Tianqi extracts its necessary lithium are located in Australia, Chile, and China. Tianqi has over 1800 employees in these countries and adheres to all national and international standards in its mining and production processes.
This company had a 6.07 billion Chinese Yuan revenue, equal to about 937 million dollars in 2018, which had had a 10% increase since 2017. Currently, the stock for Tianqi is traded for 76.90 Yuan or $11.90 per share. This stock is predicted to grow by over 13% in the next five years.
The market size for lithium mining and production
The market for lithium mining and production was estimated to be 4.29 billion dollars in 2019. Between 2020 and 2027, this market is expected to reach 8.24 billion dollars. The most significant share of lithium consumption currently belongs to China. After China, the USA has the second-highest lithium consumption.
