• About
  • Advertise
  • Privacy Policy
  • Contact
Wednesday, May 18, 2022
  • Login
The Vaultz News
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2DNew
No Result
View All Result
The Vaultz News
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2DNew
No Result
View All Result
The Vaultz News
No Result
View All Result

Worries About Lithium Shortfalls Blown out of Proportion- McKinsey

April 22, 2022
Stephen AbankwahbyStephen Abankwah
in Extractives/Energy
0
minerals

lithium

As lithium prices surge, many are fretting over this bullish trend, with Tesla’s Elon Musk wading into the discussion, saying lithium is the “fundamental limiting factor for EV adoption worldwide,” due to shortfalls in output. Albeit, McKinsey, in a report has argued that the shortfall may be overblown.

While Lithium demand is going through the roof— from an estimated 500,000 metric tonnes in 2021 to as much as 3-4 million tonnes by 2030— the lithium industry will be able to provide enough product to supply the burgeoning lithium-ion battery industry, McKinsey said.

The consulting firm said alongside increasing the conventional lithium supply, which is expected to expand by over 300 per cent between 2021 and 2030, “direct lithium extraction (DLE) and direct lithium to product (DLP) can be the driving forces behind the industry’s ability to respond more swiftly to soaring demand”.

RelatedPosts

Ghana: Rescind EI 144 and Preserve Integrity of Achimota Forest- Group to President

NPA Assures Stockpile Of Kerosene For 77 Weeks

Orca Gold Shareholders “Overwhelmingly” Approve Acquisition by Perseus

McKinsey acknowledged that though at its infancy, DLE and DLP technologies have the potential of filling supply gaps while also reducing the industry’s environmental, social, and governance (ESG) footprint, and lowering costs by boosting recovery and capacity.

lithium

Carmakers Invest in Geothermal Projects

Of the five types of technologies increasing the supply of lithium batteries, only absorption processes are already in commercial use, but DLE has several benefits including eliminating or reducing the size of evaporation ponds, less fresh water use, decreased production times, and increased recoveries from 40 per cent for traditional brine operations to over 80 per cent.

Regarding future supply, some EV-inclined carmakers Renault, Stellantis and General Motors are already investing in early stage geothermal projects. This indicates that any short term supply shocks could also be mitigated by direct shipping ore (DSO) which happened in 2018 when lithium prices previously spiked.

As for secondary supply, McKinsey said that with expected battery lifetimes of around 10 to 15 years for passenger vehicles coupled with the possibility of extending EV battery life through use in the energy-storage sector, battery recycling is expected to only represent some 6 per cent of total supply in 2030.

Growth of Lithium Batteries

Over the next decade, McKinsey forecasts continued growth of Li-ion batteries at an annual compound rate of approximately 30 percent. By 2030, EVs, along with energy-storage systems, e-bikes, electrification of tools, and other battery-intensive applications, could account for 4,000 to 4,500 gigawatt-hours of Li-ion demand

With a soaring lithium demand of 95 per cent, reaching 3.3-3.8 million tonnes of LCE by 2030, McKinsey said this would be matched with new lithium production, however, “due to short lead times associated with new lithium production, we only have visibility of 2.7 million metric tons of lithium supply in 2030,” adding that “we expect the remainder of the demand to be filled by newly announced greenfield and brownfield expansions”.

As of now, almost all lithium mining occurs in Australia, Latin America, and China (accounting for a combined 98 percent of production in 2020). Given the announcement of a pipeline of projects will likely “introduce new players and geographies to the lithium-mining gap map, including Western and Eastern Europe, Russia, and other members of the Commonwealth of Independent States (CIS).”

The consulting firm added that, given these expectations, “the reported capacity base should be enough for supply to grow at a 20 per cent annual rate to reach over 2.7 million tonnes of LCE”.

501273 gettyimages462432081 191545
lithium batteries

Exploration for lithium deposits is happening globally. This spans from lithium-producing countries like Australia, Chile, China and Argentina, to countries with recently mapped resources and reserves such as Mexico, Canada, Bolivia, the United States, and Ukraine.

“We expect announcements about new potential capacity in 2022, as some of these early-stage projects become feasible. This new potential includes conventional brines with concentrations of between 200 and 2,000 parts per million (ppm), as well as hard-rock assets, where grades of 0.4 to 1.0 percent lithium are common.”

McKinsey

READ ALSO: Oranto Energy ‘Still on the Run’ with Ghana’s Oil Money After 9 Years of Pursuit

Tags: batteryIndustryLithiumMcKinsey

Send your news stories to [email protected] and via WhatsApp on +233543050759.

Related Posts

forest
Extractives/Energy

Ghana: Rescind EI 144 and Preserve Integrity of Achimota Forest- Group to President

May 18, 2022
Public Relations Officer for the National Petroleum Authority (NPA), Mohammed Abdul Kudus, has debunked claims of shortage kerosene in the country. He revealed that there is enough supply to last for 77 weeks.
Extractives/Energy

NPA Assures Stockpile Of Kerosene For 77 Weeks

May 17, 2022
mine
Extractives/Energy

Orca Gold Shareholders “Overwhelmingly” Approve Acquisition by Perseus

May 17, 2022
oil and gas
Extractives/Energy

Oil and Gas Majors Diversify Revenue Streams After Committing to Net Zero Emissions

May 16, 2022
renewable
Extractives/Energy

EU’s Innovation Fund Failing Renewable Energy Industry

May 16, 2022
Minerals
Extractives/Energy

Ghana: Adopt Strategic Plan to Build Robust Critical Minerals Value Chain

May 16, 2022

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Previous Post

UK Embassy in Kyiv to Reopen Next Week

Next Post

We Appreciate The Prompt Response By Gov’t- Accra College of Education Principal

Sign up for The Vaultz analytic wire

Get weekly news analysis from top editors at The Vaultz and stay informed on trending economic and business issues from across the globe.
National Hospital Speaks On Osinachi's Corpse Singing 'Ekwueme' At Night
Entertainment

National Hospital Reacts to Claims of Osinachi’s Corpse Singing ‘Ekwueme’ At Night

by Dorcas DamehMay 18, 2022
Netflix
USA

Netflix Cuts 150 US-based Jobs After Loosing Subscribers

by Edem NyonatorMay 18, 2022
forest
Extractives/Energy

Ghana: Rescind EI 144 and Preserve Integrity of Achimota Forest- Group to President

by Stephen AbankwahMay 18, 2022
GSE Blue chips Bounce Back, Buoy up Benchmark
Securities/Markets

GSE Blue chips Bounce Back, Buoy up Benchmark

by Stephen M.CMay 18, 2022
Legal Counsels For Petition Being Partisan And Polarized- Prof Gyampo
General News

We Must Deal With Internally Generated Terrorizing Principles- Ransford Gyampo

by Priscilla KorantengMay 18, 2022
Genetically Modified Food, a Step Closer in Ghana- First GMO Crop to Be Approved
Agribusiness

Genetically Modified Food, a Step Closer in Ghana- First GMO Crop to Be Approved

by Deborah Dzifah TamakloeMay 18, 2022
National Hospital Speaks On Osinachi's Corpse Singing 'Ekwueme' At Night
Netflix
forest
GSE Blue chips Bounce Back, Buoy up Benchmark
Legal Counsels For Petition Being Partisan And Polarized- Prof Gyampo
Genetically Modified Food, a Step Closer in Ghana- First GMO Crop to Be Approved
Snow
FIND OUT MORE

The Vaultz News

Copyright © 2021 The Vaultz News. All rights reserved.

Navigate Site

  • About
  • Advertise
  • Privacy Policy
  • Contact

Follow Us

No Result
View All Result
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2D

Copyright © 2021 The Vaultz News. All rights reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In