Lithium supply will become tighter in 2022, supporting a significant change in the direction of prices against the backdrop of a surge in demand from the electric vehicles (EV) sector, Jonathan Evans, chief executive officer and president of miner Lithium Americas, has told Fastmarkets.
"We expect a turn in [lithium] prices by mid-2021, and into 2022 and beyond things will take off when supply gets tighter," Evans said.
Lithium Americas is advancing the
Cauchari-Olaroz lithium project in northern Argentina in partnership with China's Gangfeng Lithium.
The project is around 50% complete and, once operational, is expected to produce 40,000 tons per year of lithium carbonate equivalent (LCE).
In addition, Lithium Americas is developing the 100%-owned Thacker Pass lithium project in the US state of Nevada.
Lithium is a key ingredient in the manufacturing of batteries for EVs and energy storage systems (ESSs), and lithium demand for both uses is expected to soar in the coming years.
"The Covid-19 pandemic has affected...