Lithium Valley Main Report 2018
9
Global Consumption of Lithium from 2008 - 2016
70.0%
160,000
Figure 9: Global Consumption of Lithium from 2008 - 2016
57.7%
140,000
60.0%
54.3%
50.5%
120,000
50.0%
43.6%
100,000
40.0%
35.4%
31.4% 30.1% 31.3%
80,000
30.0%
60,000
19.8%
20.0%
40,000
10.0%
20,000
-
0.0%
2008
2009
2010
2011
2012
2013
2014
2015
2016
Battery Use
Non-Battery Use
Battery Use as % of Total Consumption
Source: Statista
Global battery production has reached the tipping point where further exponential growth is forecast for lithium and other energy storage related materials. The industry is now benefiting from the economies of scale, the learning curve effect (the more of a product that is manufactured, the cheaper the product becomes), greater resource access and increasing applications of the products (Figure 10). These New Energy industries, as they are collectively referred to in this report, are all growing rapidly.
10
Global annual use of lithium batteries (Devices, Electric Vehicles, Storage)
1000
1250
Figure 10: Falling price and increasing
800
1000
cumulative volume of batteries
600
750
400
500
200
250
0
0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Battery (GWh)
Battery Projection (GWh)
Price (USD)
Battery Price Projection (USD)
Source: Future Smart Strategies (14 April 2018)
An indicator of these demand drivers is that in 2014 global production of lithium batteries totalled approximately 30GWh. In 2018, there is approximately 350GWh of new lithium battery manufacturing capacity being planned and demand estimates by some industry analysts suggests that this needs to be closer to 500GWh by 2025. 8
8 Ferris, R. (2017), “Electric vehicle demand leads to skyrocketing number of lithium-ion battery factories around the world”, 11 December 2017, CNBC, https://www.cnbc.com/2017/12/11/electric-vehicle-demand-leads-to-jump-in-num- ber-of-lithium-ion-battery-factories.html . (Accessed: 01 May 2018)
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