This soft and light metal possesses a key quality for energy transition: its capacity to store energy in a small space. Which explains why it is an essential material in electric vehicle batteries. But what about its investment potential? High and not without risks.
There are many more uses of lithium than we can imagine. In mobile phones, tablets, laptops; in electric vehicles, building materials and air conditioning; in dyes, glass containers and even medicines; in astronauts' suits, submarines… On the road to the energy transition, lithium fever has highlighted its enormous potential for investors.
It is expected that by 2030 global demand will have almost quadrupled, which will see the current demand for 675,000 tons of lithium carbonate equivalent (LCE) in 2022 rise to 2.7 million, according to Fastmarkets, the international agency that specializes in reports on precious metals and mining. And its growth engine is and will be the electric vehicle, whose proliferation will double by 2030, according to forecasts of the Chilean Copper Commission.
Australia is the main producer, with half of the market, followed by Chile, with a quarter, and China, with 13%. In Europe, Portugal’s practically 1% world market share ranks it eighth in the world, according to the States US Geological Service (USGS), while Spain could very well become the second biggest producer in Europe. Basically because Extremadura is said to be home to what is considered the second biggest lithium reserve on the continent.
Australian company Infinity Lithium has turned its attention to the Spanish autonomous community and a mine in San José Valdeflórez (Cáceres) and, “taking into account the estimated demand for 2026 by Fastmarkets (the first year in which the plant would be operational), the project could produce 1% of estimated global demand”, says the CEO of its subsidiary in Spain, Extremadura New Energies, Ramón Jiménez Serrano.
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