Lithium industry needs US$42 billion in investment

The following Bloomberg article highlights the structural shortages in the lithium market and the need for a further US$42 billion of investment by the end of the decade in order to meet forecast demand.

Read the full article here.

The key takeaways from the Bloomberg article:

• The lithium industry needs as much as ~US$42 billion in investment by 2030 to meet growing demand.
  
• 2022 estimated production is ~600,000 tonnes, versus forecast demand of ~2.4 million tonnes by 2030 (400% higher).
  
• Europe and North America are looking to develop their own lithium supply chains to reduce reliance on China. The US is looking to invest >US$3 billion, while Canada is earmarking up to US$2.9 billion in its budgets towards building a domestic critical minerals supply chain.
  
• A report by Benchmark Intelligence highlights that major automakers may look to step into the mining and refining industry because “Unlike investors, they are not just looking for a return from profits generated by lithium. They are looking to secure supply for their batteries”.

We have investments across the lithium sector ranging from development ready projects to new discoveries and hope to see our portfolio companies contribute to a supply side response in the lithium markets.

Below are the portfolio companies we hold with exposure to lithium:

Vulcan Energy Resources (ASX:VUL) - Next Investors Portfolio

• Zero Carbon Lithium, development stage, European Union (Germany)

European Metals Holdings (ASX: EMH) - Wise Owl Portfolio

• Development stage, European Union (Czech Republic)

Latin Resources (ASX:LRS) - Catalyst Hunter Portfolio

• Exploration Stage WA (Brazil)