{"id":63832,"date":"2023-06-08T10:16:59","date_gmt":"2023-06-08T00:16:59","guid":{"rendered":"https:\/\/www.icmarkets.com\/blog\/?p=63832"},"modified":"2023-06-08T10:37:58","modified_gmt":"2023-06-08T00:37:58","slug":"ic-your-trade-3-episode-six","status":"publish","type":"post","link":"https:\/\/www.icmarkets.com\/blog\/ic-your-trade-3-episode-six\/","title":{"rendered":"Lithium \u2013 A License to Print Money?"},"content":{"rendered":"\n<div style=\"position:relative; padding-bottom:56%;\">\n<iframe style=\"position:absolute; top:0; left:0; width:100%; height:100%;\" src=\"https:\/\/www.youtube.com\/embed\/KtLAYE5yOsY\" title=\"YouTube video player\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" allowfullscreen=\"\"><\/iframe>\n<\/div>\n<style>.post-thumbnail{display:none;}<\/style>\n\n\n\n<p>Electric vehicles are predicted to make up 40% of all global new car sales over the next decade, which is driving a boom in battery metals.&nbsp;<\/p>\n\n\n\n<p>Sales of EVs began to surge during the pandemic on the back of government incentives, particularly from China and European governments.<\/p>\n\n\n\n<p>But while sales were initially fuelled by incentives, they are now being driven by insatiable consumer demand.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2023\/06\/image-66.png\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"576\" src=\"https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2023\/06\/image-66-1024x576.png\" alt=\"\" class=\"wp-image-63835\" srcset=\"https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2023\/06\/image-66-1024x576.png 1024w, https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2023\/06\/image-66-300x169.png 300w, https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2023\/06\/image-66-768x432.png 768w, https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2023\/06\/image-66.png 1153w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\n\n\n\n<p>Dale Henderson, CEO of Pilbara Minerals, which operates the world\u2019s biggest independent hard-rock lithium operation says demand is moving from being subsidy to consumer driven.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote\">\n<p>It&#8217;s very much consumer driven and very much an organic demand as a function of EVs being a superior product that the customers would prefer to buy over a car with an internal combustion engine.<\/p>\n<\/blockquote>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2023\/06\/image-67.png\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"329\" src=\"https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2023\/06\/image-67-1024x329.png\" alt=\"\" class=\"wp-image-63837\" srcset=\"https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2023\/06\/image-67-1024x329.png 1024w, https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2023\/06\/image-67-300x96.png 300w, https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2023\/06\/image-67-768x247.png 768w, https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2023\/06\/image-67.png 1385w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\n\n\n\n<p>Tesla\u2019s Model Y overtook Toyota\u2019s Corolla to become the world\u2019s best selling car in 2023.&nbsp;<\/p>\n\n\n\n<p>Globally, Tesla sold 267,200 Model Y\u2019s in the first quarter of 2023, compared to 256,400 Toyota Corollas.<\/p>\n\n\n\n<p>More than 10 million electric cars were sold around the world in 2022, with that number expected to rise to more than 70 million by 2040.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2023\/06\/image-68.png\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"576\" src=\"https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2023\/06\/image-68-1024x576.png\" alt=\"\" class=\"wp-image-63838\" srcset=\"https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2023\/06\/image-68-1024x576.png 1024w, https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2023\/06\/image-68-300x169.png 300w, https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2023\/06\/image-68-768x432.png 768w, https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2023\/06\/image-68.png 1153w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\n\n\n\n<p>In a 2022 earnings call, Tesla CEO Elon Musk noted a need for more global lithium suppliers referring to lithium as a \u201clicence to print money\u201d.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote\">\n<p>I\u2019d like to once again urge entrepreneurs to enter the lithium refining business. The mining is relatively easy, the refining is much harder. You can\u2019t lose, it\u2019s a licence to print money,\u201d said Mr Musk.<\/p>\n<\/blockquote>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2023\/06\/image-69.png\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"329\" src=\"https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2023\/06\/image-69-1024x329.png\" alt=\"\" class=\"wp-image-63839\" srcset=\"https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2023\/06\/image-69-1024x329.png 1024w, https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2023\/06\/image-69-300x96.png 300w, https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2023\/06\/image-69-768x247.png 768w, https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2023\/06\/image-69.png 1385w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\n\n\n\n<p>Australia is the world\u2019s biggest lithium producer, supplying about 60% of the world\u2019s lithium.<\/p>\n\n\n\n<p>The industry has experienced extraordinary growth over the past two years. For most of 2021, monthly lithium exports didn\u2019t exceed AU$250 million, but in June 2022, monthly exports of lithium carbonate surpassed AU$1 billion.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2023\/06\/image-70.png\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"576\" src=\"https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2023\/06\/image-70-1024x576.png\" alt=\"\" class=\"wp-image-63840\" srcset=\"https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2023\/06\/image-70-1024x576.png 1024w, https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2023\/06\/image-70-300x169.png 300w, https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2023\/06\/image-70-768x432.png 768w, https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2023\/06\/image-70.png 1153w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\n\n\n\n<p>While the lion\u2019s share of demand is tied to electric cars, the use cases for lithium batteries continue to grow.<\/p>\n\n\n\n<p>\u201cThere&#8217;s a number of other use cases for the lithium and lithium battery, whether that&#8217;s e-mobility, scooters, surfboards, but also mass energy storage. So many different use cases are coming to bear and they&#8217;ve all got different growth rates and different extensive adoption,\u201d said Mr Henderson.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2023\/06\/image-71.png\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"576\" src=\"https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2023\/06\/image-71-1024x576.png\" alt=\"\" class=\"wp-image-63841\" srcset=\"https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2023\/06\/image-71-1024x576.png 1024w, https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2023\/06\/image-71-300x169.png 300w, https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2023\/06\/image-71-768x432.png 768w, https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2023\/06\/image-71.png 1153w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\n\n\n\n<p>According to Henderson, Pilbara Minerals needs to more than double production just to meet existing demand.<\/p>\n\n\n\n<p>According to modelling by the Australian Government, the world needs to ramp up production by at least 300% over the next five years.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2023\/06\/image-72.png\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"576\" src=\"https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2023\/06\/image-72-1024x576.png\" alt=\"\" class=\"wp-image-63842\" srcset=\"https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2023\/06\/image-72-1024x576.png 1024w, https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2023\/06\/image-72-300x169.png 300w, https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2023\/06\/image-72-768x432.png 768w, https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2023\/06\/image-72.png 1153w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\n\n\n\n<p>The burgeoning global demand is driving up prices of lithium carbonate.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote\">\n<p>I think anything&#8217;s possible, particularly when you look in the rearview mirror and you see some of the highs which exceeded $70,000 per tonne. So clearly batteries were being sold at those prices. So it seems reasonable to me that prices could return to those high levels and potentially beyond. I guess we&#8217;ll wait and see.<\/p>\n<\/blockquote>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2023\/06\/image-73.png\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"329\" src=\"https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2023\/06\/image-73-1024x329.png\" alt=\"\" class=\"wp-image-63843\" srcset=\"https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2023\/06\/image-73-1024x329.png 1024w, https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2023\/06\/image-73-300x96.png 300w, https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2023\/06\/image-73-768x247.png 768w, https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2023\/06\/image-73.png 1385w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2023\/06\/image-74.png\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"576\" src=\"https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2023\/06\/image-74-1024x576.png\" alt=\"\" class=\"wp-image-63844\" srcset=\"https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2023\/06\/image-74-1024x576.png 1024w, https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2023\/06\/image-74-300x169.png 300w, https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2023\/06\/image-74-768x432.png 768w, https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2023\/06\/image-74.png 1153w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\n\n\n\n<p>The lithium sector has also undergone an intense period of M&amp;A activity with the larger players seeking to acquire high quality lithium assets.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote\">\n<p>What&#8217;s driving this is the race to secure these critical minerals. I think it speaks to demand and it speaks to security of supply.<\/p>\n<\/blockquote>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2023\/06\/image-75.png\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"329\" src=\"https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2023\/06\/image-75-1024x329.png\" alt=\"\" class=\"wp-image-63845\" srcset=\"https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2023\/06\/image-75-1024x329.png 1024w, https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2023\/06\/image-75-300x96.png 300w, https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2023\/06\/image-75-768x247.png 768w, https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2023\/06\/image-75.png 1385w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\n\n\n\n<p>Many of the major car manufacturers have direct offtake agreements with Australian lithium miners.&nbsp;<\/p>\n\n\n\n<p>Tesla, Ford, Volkswagen and Mercedez-Benz all have direct offtake agreements with Australian lithium producers.<\/p>\n\n\n\n<p>\u201cMany of these car companies are augmenting their business from internal combustion engines to EVs, and they&#8217;re in this race to secure their security of supply,\u201d said Mr Henderson.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Electric vehicles are predicted to make up 40% of all global [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":63833,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[464],"tags":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.icmarkets.com\/blog\/wp-json\/wp\/v2\/posts\/63832"}],"collection":[{"href":"https:\/\/www.icmarkets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.icmarkets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.icmarkets.com\/blog\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/www.icmarkets.com\/blog\/wp-json\/wp\/v2\/comments?post=63832"}],"version-history":[{"count":4,"href":"https:\/\/www.icmarkets.com\/blog\/wp-json\/wp\/v2\/posts\/63832\/revisions"}],"predecessor-version":[{"id":63920,"href":"https:\/\/www.icmarkets.com\/blog\/wp-json\/wp\/v2\/posts\/63832\/revisions\/63920"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.icmarkets.com\/blog\/wp-json\/wp\/v2\/media\/63833"}],"wp:attachment":[{"href":"https:\/\/www.icmarkets.com\/blog\/wp-json\/wp\/v2\/media?parent=63832"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.icmarkets.com\/blog\/wp-json\/wp\/v2\/categories?post=63832"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.icmarkets.com\/blog\/wp-json\/wp\/v2\/tags?post=63832"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}