The site of Chemetall’s lithium project in Silver
Peak, Nevada
As the global lithium industry met in Toronto for IM’s Lithium Supply and Markets conference (LSM’11) in January, it was clear that some delegates wanted to inject a dose of reality to an industry characterised by optimism.
The anticipated boom in electric vehicle production has seen a wave of junior lithium companies emerge over recent years; potential suppliers for what could become the combustion engine of the 21st century - the lithium-ion battery.
The bone of contention rests on the supply and demand outlook over the next decade, and whether these dynamics leave room for new players in the market.
Supply forecasts are subject to the capacity of new start-ups and expansions from both established producers and emerging companies, but the demand side is much more speculative.
Analysts estimate that demand in 2011 will be...