Hydrocarbons powered the world for over a century. The lithium-ion battery provides a tremendous energy storage capacity relative to size/weight. By having that energy available when we need it, we can capture energy when we don’t need it, storing it efficiently in a usable format, and delivering it at the point of consumption. Wind, tidal, solar, geothermal – all these sources of energy become much more viable now that the issue of storing that energy for as-needed use is solved. The promise of electric vehicles (EV) is the most visible aspect of the profound changes happening in the world today due to lithium-ion battery technology, but they have application in all aspects of life.
Lithium shares are on a roll after investment bank Macquarie (ASX: MQG) joined peers in predicting a further increase in prices driven by increasing demand from the electric vehicles (EVs) sector, which is expected to push the market into undersupply.
Analysts at the bank are now forecasting prices to rise by between 30% and 100% over the next four years.
According to Bloomberg NEF’s Electric Vehicle Outlook, by 2025 EVs will hit 10% of global passenger vehicle sales, rising to 28% in 2030 and 58% in 2040. But you can’t have electric vehicles without lithium-ion batteries.
At the current projected pace, available hydroxide supply is being outstripped by electric vehicle demand.