Lithium carbonate industry in-depth report: global lithium carbonate supply and demand tension

Global lithium resources are concentrated, and salt lake resources dominate. Total lithium reserves in Chile and China are 11 million tons, accounting for about 85% of the world's lithium reserves. Lithium is mainly in the form of lithium-rich salt lakes and solid ores, and Chile and Australia currently account for more than 70% of the world's lithium carbonate capacity. Lithium is used to extract lithium, which accounts for about 70% of the supply. The salt lake in Chile accounts for 50% of the global supply of lithium products. Relative to the extraction of lithium from ore, the preparation of lithium carbonate from salt lake brine is low cost 8,000 to 10,000 yuan/ton, which has the advantages of low energy consumption and low cost.

The global supply is concentrated, and the expansion of production capacity is highly uncertain and susceptible to weather. The global supply of lithium carbonate is highly concentrated. The three largest manufacturers in the world, SQM, FMC, and Rockwood, together account for more than 70% of the market share. The development of salt lakes takes the integrated use of routes, and the expansion of lithium carbonate as a by-product is affected by the main product supply and demand market, and the production process is easily affected by the weather.

The demand for lithium carbonate is strong, and there is great potential for lithium battery applications. Lithium batteries are the areas with the greatest potential for growth in demand for lithium carbonate. The fastest-growing areas in the short-term are consumer electronics (15%) and electric bicycles (9%). Medium to long-term growth comes from the field of electric vehicles and grid energy storage, especially the latter two. The outbreak will bring a huge imagination to the demand for lithium carbonate.

Lithium carbonate supply and demand tension, prices into the medium-term rising cycle. With global demand for lithium carbonate under a neutral demand and supply optimism scenario, global lithium carbonate supply will only slightly exceed demand in 2015. Under the demand optimism scenario, the global lithium carbonate supply gap will be as high as 100,000 tons by 2015, and global lithium carbonate Supply and demand will remain tight in the medium to long-term, lithium carbonate prices into the medium-term rising cycle.