Lithium Demand Expected to Grow 20% Per Year

Automotive batteries are not the only users of lithium: aerospace alloys, ceramics, glass, lubricants, refrigeration, pharmaceuticals, greases, silver solder, textiles, propellants and in the production of synthetic rubber.

In 2006, according to the USGS, the United States was the leading consumer of lithium minerals and compounds and the leading producer of value-added lithium materials.

• According to the USGS, overall demand for lithium is growing at a rate of 4-5% per year
• Demand for lithium destined for battery usage is predicted to grow by 20% per year
• The worldwide market for rechargeable lithium batteries is estimated to be worth over $4 billion/year
• The automotive market alone is projected to reach $337 million in 2012, and $1.6 billion in 2015

If the promise by President Obama that one million American made hybrid vehicles will be on American roads by 2015 is to be met then there is no substitute for lithium based battery technology at this stage of the energy revolution.

According to The National Alliance for Advanced Transportation Battery Cell Manufacture: “Lithium ion batteries are anticipated to replace gasoline as the principal source of energy in future cars and military vehicles."

Now, with the big push to renewable energy and far less reliance on fossil fuels, a market is starting to develop in the United States for more advanced batteries. This, combined with loan guarantees, will act as an incentive that could very well jumpstart the advanced battery industry in the US.