Lithium demand was strongly affected by the coronavirus pandemic. April production of cars dropped up to 90% in all countries worldwide due to anti-pandemic measures. Electric cars production was no exception, and therefore demand for lithium, as key commodity for batteries to electric vehicles, dropped.
Yet, according to Benchmark Mineral Intelligence (BMI), lithium demand will start rising once production of electric cars returns to its pre-pandemic levels. Consequently, lithium price will grow. However, the process will be rather lengthy and we can’t expect the prices to be back on previous levels earlier than in 2022.
At that time, lithium demand could be so high that miners won’t be able to enlarge their capacities. This will lead to price increase. BMI predicts global production of lithium in the volume of nearly 320,000 tons. In 2023, the production could be as high as 540,000 tons.