A worldwide lithium shortage could come as soon as 2025 – by Lee Ying Shan (CNBC.com – August 29, 2023)


The world could face a shortage for lithium as demand for the metal ramps up, with some analysts forecasting that it could come as soon as 2025. Others, however, see a longer time frame before that shortfall hits.

BMI, a Fitch Solutions research unit, was among those that predict a lithium supply deficit by 2025. In a recently published report, BMI largely attributed the deficit to China’s lithium demand exceeding that of its supply. “We expect an average of 20.4% year-on-year annual growth for China’s lithium demand for EVs alone over 2023-2032,” the report stated.

In contrast, China’s lithium supply will only grow 6% over the same period, BMI said, adding that rate cannot satiate even one third of forecasted demand. China is the world’s third largest producer of lithium, which is an integral element in electric vehicle batteries.

The world produced 540,000 metric tons of lithium in 2021, and by 2030 the World Economic Forum projects that global demand will reach over 3 million metric tons.

For the rest of this article: https://www.cnbc.com/2023/08/29/a-worldwide-lithium-shortage-could-come-as-soon-as-2025.html