Commodity Overview: Lithium

Macro demand: EV adoption driving structural shift in demand for Lithium

  • The lithium market is poised for significant growth in the coming years, driven by the increasing adoption of electric vehicles and the transition to clean energy.

  • Australia is the premier place for lithium investment due to its abundant hard rock resources, favourable regulatory environment, and strong mining expertise.

  • China is the world's largest processor of lithium, responsible for refining over 70% of the world's raw products. As geopolitical tensions continues to increase, the west is aggressively supporting initiatives in aligned countries.

  • The US Inflation Reduction Act and the European Green Bill are two major pieces of legislation in the West that are providing significant support for the lithium industry. These bills provide billions of dollars in tax credits and other incentives to produce lithium and other battery materials.

 

The future is looking very positive for the critical mineral with Australia well placed to benefit from the EV adoption of driving but, buyers beware of the 'lifestyle managers' that claim to have exploration projects, as many of these projects never get off the ground and should be avoided by smart investors and are only good for speculation at best.

Source: Linkedin

Market InsightsEden Asset Managementlithium, commodities