Why lithium – Resource for the 21st century
Demand for lithium is expected to grow and is underpinned by the transition to electrification and the adoption of electric vehicles (EVs) from the traditional combustion engine. Lithium is a core component of the batteries required for the development of the EV market.
Over the past year, EV sales rose 31% to over 13.6 million with projections from the International Energy Agency reporting that EV sales will represent more than 60% of vehicles sold globally by 2030.
Despite the small, temporary lithium supply glut, it’s clear we’re facing a significant long-term deficit
Lithium pricing has seen a dramatic fall over the last year due to new supply running ahead of growing demand and the destocking of battery related materials, among manufacturers, primarily in China. There is growing consensus that lithium pricing has now reached a low point and will continue to climb again, albeit not to the same high level as seen in 2022.
This expectation is based on high demand for lithium batteries in EV production and some reductions in supply based on certain projects having been delayed or suspended pending an improvement in the price. Across CTL’s two projects, production cost per tonne of LCE is projected to be in the lower quartile of costs and should enable robust returns even at lower price points once in production.
Key Strategic Players Entering the Lithium Space
To aid the clean energy transition, the Company is proposing to utilise DLE technology to supply battery grade ‘green’ lithium carbonate. Global adoption of DLE in the development or production stage has significantly increased over the past few years, with a range of mining majors and juniors investing in the technology, companies such as Eramet, Rio Tinto and Exxon.
The advancement of DLE is aligned with the Chilean government’s National Lithium Strategy, announced in April 2023, which prioritises the use of sustainable lithium technologies for all new lithium extraction projects, highlighting both the environmental and social opportunity associated with the growing lithium industry. CTL aspires to be a leading developer of sustainable lithium in Chile using this transformative approach to lithium extraction.
