Since then, Li began to call the “white oil” and it is believed that the world is on the threshold of a new energy revolution. However, some experts believe that it has already started, just don’t want to miss.
The most curious that in the Wake of the lithium revolution Chile, quite a mean for economic development of a country can become energy superpower, the new “Saudi Arabia”, analysts of the Agency Dow Jones.
In recent years, the demand for lithium is growing. The reason for this is the increasingly expanding sector of the production of lithium-ion batteries, which are used not only in gadgets but also in the automotive industry, as well as in the emerging sector of energy storage.
The Economist has called Li “the hottest commodity in the world.” The price of pure lithium carbonate has increased twice. And among consumers of lithium the battle unfolds for the supply of this valuable material. As a result, according to conservative projections, by 2021 the world will need 100 thousand tons of lithium carbonate.
All new factories for the production of lithium batteries is expected to raise the capacity of global lithium industry by 150% by 2020. While the annual rate of growth of the electric car market will be, according to analysts, 20-30%. Thus, the rise in demand for “white oil” in the foreseeable future will have no ceiling.
Chile also has the world’s largest reserves of lithium on the wet salt flat Salar de Atacama, the cost of extraction which is also minimal. However for a long time due to outdated legislation, to increase production failed, but the country’s new President Sebastian Pinera has removed this obstacle.
Now the quota is the largest in Chile manufacturer of lithium carbonates Sociedad Quimicay Minerade Chile (SQM) is increased fourfold. There is a similar agreement with the second largest Chilean producer, Albermarle company. In the end, the extraction of lithium by 2025, according to recent forecasts from the Chilean regulators can grow 10 times.
However, analysts Dow Jones warned that the Chilean path to becoming a lithium superpower will be difficult. The fact that the market for electric vehicles is growing as fast as we would like. Morgan Stanley predicts that their share in the global market in seven years will reach 9%, against 1.6% at the moment.
And the production of lithium batteries will lag behind growth in the supply of this metal. In the global market of lithium will soon be a glut, and the price of the metal by 2025 will fall to 45%.
However, Scotiabank analyst Ben Isaacson believes that in the long term, Chile will become the “Saudi Arabia”: “According to our most pessimistic scenario, prices will be in the region of 8 thousand dollars per ton against the current 13 thousand dollars per ton. However, the cost of production in the field of Salar de Atacama is 4 thousand dollars per ton, including royalties on production, so they will still get a good profit.
