The Power of Lithium is Energizing the Future of Technology!
The Lithium Market Goes Into Overdrive
The power of lithium for electric vehicles (EV) is energizing the future of technology. The raw numbers say it all. The global
lithium market was valued at nearly $6 billion US in 2020, according to one report comprised of data from company filings, industry
reports, and government statistics. That same report estimates that the global lithium market will reach nearly $10 billion US by
2028. Another report pegs the numbers much higher – at $7 Billion US in 2022 and rising to nearly 23$ Billion by 2030.
Lithium’s versatility in batteries for personal devices and, more importantly, for Electric Vehicles is powering this incredibly
fast growth. In 2011 the use of lithium in batteries comprised 27% of the market for that metal. By 2019, batteries drained 65% of
worldwide lithium output. That number has recently hit 75% and will continue to grow.
Governments Gear Up with Incentives and Rebates
We all understand we must reduce or eliminate our reliance on carbon emissions. EVs are one of the most obvious targets by which we
can achieve that goal. And so, governments are stepping up with a variety of incentives to encourage conversion to EVs – both at the
consumer and manufacturer level.
At the latter, the Federal government has invested heavily in green initiatives that involve lithium in manufacturing. Most
recently, the Feds stepped up with a whopping $13 billion in subsidies for a new Volkswagen battery plant in St. Thomas, Ontario.
They sweetened that deal with another $700 million to help cover capital expenses in building the plant, which will be Canada’s
largest and provide 3000 direct jobs, and 30,000 indirect ones. The Ontario government is also financially involved in the VW plant.
The province and the Feds also both contributed $590 million in subsidies to the Ford Motor Company, to help with the conversion of
its Oakville plant to the construction of EVs.
Federal EV Rebates
At the consumer level, the Federal and provincial governments are encouraging the growth of EV sales with a welter of incentive
programs to support both their purchase or lease, as well as the installation of home charging stations. Many provincial governments
(with a few notable exceptions, such as Ontario and the Prairie provinces) offer step-ups to the Federal rebates.
Canadian Mining Plays Catch-Up
Until recently, Canada was lagging in lithium mining, with Australia and Chile in the forefront of producing nations. Both those
countries’ lithium regions are easily accessible, with Australia’s in the south-eastern tip of Western Australia, and Chile’s in the
northern Atacama Desert. Canada’s reserves of the metal are locked away in the Canadian shield. However, Nemaska Lithium, a Quebec
mining company, has just signed an eleven-year deal with the Ford Motor Company. Nemaska’s ore will come from the James Bay region
and be refined in its Quebec plant northeast of Montreal. The provincial government has partnered with Nemaska to make the sale
happen.
The power of lithium is indeed energizing the future of technology – with government support and growing consumer interest.