The global lithium market is expected to experience robust growth in the coming years, with a projected size of $10.44 billion by 2028, reflecting a compound annual growth rate (CAGR) of 10.8 per cent, according to a report from The Business Research Company.
Released on Thursday, the report says that the market will grow from $6.29 billion in 2023 to $6.92 billion in 2024 at a CAGR of 9.9 per cent.
The growth can be attributed to the consumer electronics boom, advancements in lithium-ion batteries, and the increasing demand for renewable energy storage.
Key trends anticipated during this period include advancements in lithium technologies, the emergence of solid-state lithium batteries, the diversification of lithium sources, the integration of lithium in aerospace applications, the adoption of decentralized energy solutions and more environmentally friendly practices.
Green lithium, for example, refers to environmentally sustainable lithium production and extraction processes. These include practices that reduce carbon emissions, energy consumption, and water usage during the production of lithium.
Furthermore, smartphone adoption will also have a direct impact on the demand for lithium.
For example, according to UK-based financial conduct authority, Uswitch Limited, mobile connections reached 71.8 million in February 2023. This represents a 3.8 per cent increase over the previous year and an extra 2.6 million connections. Projected estimates indicate that the UK’s population will reach 68.3 million by 2025, with 65 million people or 95 per cent of the population owning a smartphone.
Read more: Lithium South and POSCO Holdings ink mutual development agreement
Read more: Lithium South Development expands production goals, updates PEA on Hombre Muerto lithium project
Lithium companies are making big moves while the commodity is hot
The active mining stocks in the markets for this week include Lithium South Development Corporation (OTCQB: LISMF) (TSXV: LIS), Arcadium Lithium plc (NYSE: ALTM) (ASX: LTM), American Lithium Corp. (NASDAQ: AMLI) (TSXV: LI), Lithium Americas Corp. (NYSE: LAAC) (TSX: LAAC), and Sigma Lithium Corporation (NASDAQ: SGML) (TSXV: SGML).
Lithium South Development Corporation and POSCO Argentina announced a cooperative development agreement on the HMN Li Project. The agreement involves POSCO Argentina SAU, a subsidiary of the South Korean industry giant, Pohang Iron and Steel Company (POSCO).
Additionally, the newly-reconstituted Lithium Americas Corp. completed the reorganization of Lithium Americas into two independent publicly traded companies.
“We look forward to seeing these two market-leading companies thrive independently,” said Jonathan Evans, President and CEO of Lithium Americas.
“The separation offers investors two unique and highly focused pure-play lithium companies with world-class assets in our respective regions of operation.”
Sigma Lithium Corporation recently made an announcement regarding the final shipment of 22,000 tonnes of concentrate to Glencore at the Port of Vitoria.
Upon completion of loading, Glencore will provide a 50 per cent prepayment of the fifth shipment’s value. This 50 per cent prepayment represents a provisional premium price for the company’s unique Quintuple Zero Green Lithium concentrate.
Lithium South Development Corporation is a sponsor of Mugglehead news coverage
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