As if to confirm Robin Bromby’s recent assessment that “the Lithium story [was] getting stronger,” there have been media announcements that China will be subsidizing purchases of electric (and hydrogen) cars sold between now and 2015 to the tune of roughly $9,800. China’s reported goal of putting five million “new energy cars” on the road by 2020 has major implications for Lithium’s supply and demand, as lithium-ion batteries are key components of these “new energy cars,” putting China into a conundrum. Says Bromby in his latest Lithium-focused piece for Investor Intel:
“The problem for China is that it is already the world’s largest consumer of lithium but its own deposits amount to just 9% of known world resources of the mineral. Yet it is obvious that Beijing can see that China’s demand is going to become even greater and they will need more and more lithium.”
It’s a story to be watched. Bromby quotes Canadian mineral exploration and development company Rodinia Lithium.
“Rodinia’s view: The lithium bonanza may just be starting. The green-car revolution could make lithium one of the planet’s most strategic commodities.”