OEMs Insatiable Demand for Lithium
Aggressive targets for EV production will not be met unless auto manufacturers can secure the required supply of battery metals. Lithium may be an abundant resource but it's currently not mined and produced in sufficient quantities to meet demand, which is only increasing significantly every year.
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There are some very interesting dynamics at play with the lithium sector.
As with any mineral going from prospect to extraction takes an incredibly long time so it’s likely that EV makers will be in lithium deficit for some time.
I’m aware of some niche companies exploring the possibility of magnesium batteries instead of lithium. Which I don’t think would be used in EVs but could be used for general household batteries.
Another thing I noticed is that we seem to be advancing battery recycling I remember buying a pack of rechargeable batteries that quoted to be 5% recycled. I bought a pack this weekend and it claims to be 15% recycled.
Definitely bullish on lithium but keeping my eye out for niche alternatives like lithium recycling or magnesium batteries.