Roskill - Expanding The World's Knowledge of Metals and Minerals Markets
Table of Contents
- 1. Summary
- 2. Introduction
- 3. World production of lithium
- 4. Review of lithium producing countries
- 5. International trade in lithium
- 6. World consumption of lithium
- 7. End-uses for lithium
- 8. Prices of lithium
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Lithium
Strong growth in consumption of lithium led by higher demand for batteries
Demand for lithium has shown strong growth in the mid-2000s, with world consumption estimated to have increased by 4-5%py since 2002 to reach a record level close to 80,000t lithium carbonate equivalent (LCE) in 2005. This increase has been led by higher demand for lithium carbonate in secondary batteries. In 2005, batteries accounted for 20% of total lithium consumption, more than double the 9% share held in 2000. Growth in the use of lithium secondary batteries has been driven by the rapid expansion in the portable consumer electronics sector. By 2005, nearly all mobile phones and over 90% of laptop computers incorporated lithium-based secondary batteries due to their higher energy density and lighter weight than nickel-cadmium and nickel-metal hydride products. Driven by demand from the battery market and higher production costs, lithium carbonate prices began to recover in 2003, and the upturn gained pace through 2006. Tight supply was reflected in a 20% rise in Chilean lithium carbonate prices in 2005, while SQM reported that in the first quarter of 2006, prices were 40% higher than in the same period of 2005.
The key trends, issues and developments in the market are analysed in this major new report from Roskill. It provides a clear insight into the industry and its trends, and an authoritative analysis of the prospects for the future.
- Independent, in-depth research and analysis
- Essential market intelligence for successful business planning
- Detailed survey of production in 36 countries
- Up-to-date profiles of the activities of over 20 current and potential lithium producing and processing companies, including Sons of Gwalia, SQM, Chemetall GmbH and FMC Lithium.
- Forecasts for end-use consumption and world supply and demand
Report highlights
The lithium market can be divided between lithium chemicals (sourced from brines or minerals), which account for some 80% of total consumption, and lithium minerals consumed directly. These market shares have almost reversed since SQM entered the lithium carbonate market in 1996.
Reflecting growth in demand, world lithium production is estimated to have increased by some 4%py between 2002 and 2005. The industry is characterised by a high degree of concentration of production, with two countries a' Chile and Australia a' together accounting for nearly two-thirds of world output and for most of the growth in production in the mid-2000s.
Sons of Gwalia in Australia produces some 60% of world output of lithium minerals (as spodumene) from Greenbushes hard rock deposit, with output estimated at 120,000t (gross weight) in 2005. SQM of Chile, with shipments of 27,800t lithium carbonate in 2005, accounted for 36% of world production. This share will increase in 2008, following the company's planned expansion in production capacity to 40,000tpy.
An interesting feature of world lithium production is the potential emergence of China as a leading supplier. The development of technology to extract lithium from high-magnesium brines has led to the start of lithium carbonate production from salt lakes in Qinghai and Tibet provinces. In late 2005, CITIC Guorun began construction of a 35,000tpy lithium carbonate plant to exploit lithium reserves in Xitai Ginar salt lake in Qinghai province. Production was scheduled to start in 2006.
Portable electronic consumer products will remain the main area of growth for secondary batteries through 2010, with shipments to the Asian cellular phone market alone estimated to rise by 50%py and growth rates in Russia and Poland reaching 70%py. Longer-term growth will depend on the market penetration achieved by hybrid electric vehicles and on the commercialisation of safe and cost-effective lithium batteries to power them.
Buy This Report Now
The Economics of Lithium published 01/07/2006
195 pages, 120 tables and 27 figures.
ISBN 0 86214 519 8
Complete report price:
GBP 2200
EUR 3850
USD 4400
plus postage/packing.