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The lithium market remains afloat

The lithium market remains afloat

Forecasts for this market sector is quite favorable. Their data provided the company Sociedad Quimica y Minera de Chile from Chile. Last year, global consumption of lithium increased by 17% relative to 2016. The result was a shortage of metal and increase its value. However, the rise in prices and provoked increased activity of investing in lithium power. This increases the concern of many investors. They fear excess supply, against which there will be a collapse of prices. Such forecast was made by the American Bank Morgan Stanley. Analysts believe that the existing transformirovalsya deficit into surplus next year. Representatives of the company Wood Mackenzie indicate significant decrease in quotations of the metal. This situation may occur due to supply in excess of demand for lithium.

But most of the experts looking at the situation more optimistically. Because the market for electric vehicles continues to expand. This year, more than 50% of the consumed lithium is used to make batteries for them. But by the middle of 2020, this sector will account for more than 90% of the metal. In any case, this assumption was expressed by the Director of Roskill. Representatives of Bloomberg New Energy Finance say about the likely emergence of significant new consumer lithium-ion batteries. After all, if there’s electric cars, is not excluded and the emergence of «electric» ships.

It is assumed that the overproduction can be formed in the field of lithium concentrate. However, the lack of capacities for the production of carbonate of lithiumand other products as intermediate, and finished. It is not excluded that certain companies are planning production of lithium today, subsequently have to stop the projects. The reason for that will be the problem of processing of raw materials.

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