The global demand for lithium will grow to $7.25 billion in 2023 at a Compound Annual Growth Rate (CAGR) of 16.9 per cent due to enhanced production efficiency through the increased use of autonomous hauling systems trucks in the mining industry.
However, according to a recent report by the analytics firm Report Linker, the recent war between Russia and Ukraine has disrupted the chances of global economic recovery from the COVID-19 pandemic, at least in the short term. Despite the potential short-term impact, the lithium industry is expected to continue its growth trajectory in the long term, experiencing a CAGR of 17.5 per cent and its value expected to increase from $6.2 billion in 2022 to $13.85 billion in 2027.
Lithium extraction involves a series of chemical procedures that isolate the mineral from a material and transform it into a form that can be sold. Water with a high concentration of lithium carbonate, called brine, is often used to recover the mineral. One of the main sources of lithium carbonate is brines found in the Earth’s crust. Sources of the mineral include brine and hard rock, with the mining types including underground mining and surface mining.
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The lithium market encompasses not only the revenues earned by companies involved in production, but also the revenues earned by entities producing glass, aluminum products, and batteries. This market value also includes the value of related goods sold by the service provider or included within the service offering. However, only goods and services traded between entities or sold to end consumers are included in the market value.
The main uses for the mineral include glass and ceramics, greases and lubricants, chemical synthesis, portable electronics and other handhelds, hybrids, battery electric vehicles (BEV), grid, and other power storage applications.
Major players in the market include Albemarle Corporation (NYSE: ALB), Sociedad Química y Minera (NYSE: SQM), FMC Corporation (NYSE: FMC), Sichuan Tianqi Lithium Industries Inc., and Jiangxi Ganfeng Lithium Co. Ltd.
This month General Motors (NYSE: GM) invested $50 million into Energy Exploration Technologies (EnergyX) to develop a lithium extraction and refinery technology.
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