Global demand supply of LIhium
In 2020, the total demand for lithium worldwide amounted to 292 thousand metric tons of lithium carbonate equivalent. It is forecast that by 2030 this quantity will increase to approximately 2.5 million metric tons.
he global demand for lithium has been growing rapidly in recent years due to the increasing use of lithium-ion batteries in electric vehicles, energy storage systems, and other electronic devices. According to some estimates, demand for lithium could increase by up to 600% by 2030.
The supply of lithium is concentrated in a few countries, with the largest reserves located in Australia, Chile, and Argentina. In 2020, Australia was the largest producer of lithium, followed by Chile and Argentina. Other countries with significant lithium reserves include China, the United States, and Canada.
In recent years, there has been an increase in the production of lithium, driven by the growing demand for electric vehicles and energy storage systems. This has resulted in a decrease in lithium prices, with some estimates suggesting that prices could continue to fall in the coming years due to the increase in supply.
However, it is worth noting that the production of lithium is not without its challenges. Mining and processing lithium can be energy-intensive and can have significant environmental impacts, including water usage, air pollution, and the destruction of ecosystems. As demand for lithium continues to grow, it will be important to ensure that its production is sustainable and responsible.
Overall, the global demand and supply of lithium are expected to continue to grow in the coming years, driven by the increasing use of electric vehicles and energy storage systems. However, ensuring the sustainable production of lithium will be an important challenge in the years ahead.
India has been taking steps to increase its domestic production of lithium and develop a domestic supply chain for electric vehicles and energy storage systems. The government has announced several initiatives aimed at promoting the development of a domestic lithium-ion battery industry, including financial incentives for battery manufacturers, research and development grants, and plans to set up lithium-ion battery manufacturing units in the country.
In addition, several private companies have also announced plans to set up lithium-ion battery manufacturing facilities in India, with the aim of tapping into the growing demand for electric vehicles and energy storage systems in the country.
Despite these efforts, India’s current production capacity for lithium remains limited. The country has a long way to go before it can become self-sufficient in lithium production and meet its growing demand for electric vehicles and energy storage systems. However, with the government and private sector working to develop a domestic lithium-ion battery industry, India is well-positioned to become a major player in the global lithium market in the coming years.