Over the next ten years, the outlook for the lithium sector is “as bright as ever” amid fast production and demand growth, a new report from Fitch Solutions and Country Risk shows.
The global acceleration towards decarbonisation, the electrification of vehicles and energy storage continues. It provides a backdrop for fast-paced change in a market traditionally dominated by only a handful of participants and opening up many new production opportunities elsewhere in the world.
However, the constant technological advancements on both the supply and demand sides pose risks to the market outlook. Fitch cautions that since lithium is now considered a ‘strategic mineral’, it will likely lead to rising government intervention in its production and sourcing.
The lithium supply landscape will, therefore, evolve quickly and dramatically over the next few years.
Fitch forecasts global lithium production will more than triple from 442,000 tonnes of lithium carbonate-equivalent (LCE) in 2020 to 1.5 million tonnes of LCE by 2030.