By - Bhawna Gupta
Highlights
- Lithium has highest charge-to-weight ratio and that’s why we can carry phones with light lithium-ion batteries easily rather than heavy lead batteries.
- Demand for lithium is rising with the growing demand of electric vehicles (EVs).
Lithium is now one of the world's most valuable and desired mineral commodities and this is largely driven by electric vehicle (EV) demand and battery power.
Lithium is a soft alkali metal capable of storing a large amount of electricity. Because lithium has the highest charge-to-weight ratio, people can carry phones with light lithium-ion batteries rather than heavy lead batteries.
There is no denying the fact that the demand for lithium is soaring because of the growing popularity of electric vehicles (EVs) across the globe as lithium is an important component of batteries used in EVs.
Lithium is also an essential component of grid storage batteries.
Lithium resources are classified into two types: lithium minerals, which are primarily derived from the mineral spodumene, and salts, which are mainly derived from lithium-rich brines in salt lakes. Lithium is found in abundance in Canada, China, and Australia, whereas lithium brine is primarily produced in Chile, followed by Argentina, China, and the US. Lithium brines are the most common feedstock for the manufacturing of lithium carbonate.
Lithium prices have risen more than 400% in the last year as demand has outstripped supply, delivering gale-force tailwinds for ASX lithium stocks.
The price of lithium has a significant impact on the stock prices of the miners that produce it.
Future of Lithium in Australia
In Australia, lithium (Li) has a promising future. Although future worldwide demand for lithium is difficult to predict, most predictions show an upward tendency. Certainly, the trend of rising consumption over the last decade suggests that demand will be comparable or perhaps higher in the future.
The use of lithium in rechargeable batteries, not just for electronic gadgets but also for electric cars and the storage of renewable and other energy, has been the key driver of increase in rising demand for lithium.
With extensive hard-rock, pegmatite-hosted lithium deposits, primarily in Western Australia, Australia is well positioned to meet this demand. These include the operating Greenbushes Mine, the Pilgangoora, Mount Cattlin, Early Grey, Mount Marion, and Bald Hill deposits.
In this article, we at Kalkine Media® will look at some ASX-listed lithium stocks.
Image Source: © 2022 Kalkine Media ®
Data Source- ASX website
Image Source: © Timonschneider | Megapixl.com
Allkem (ASX:AKE) is a minerals exploration and production company with a focus on developing lithium resources in Argentina. It also manufactures boron.
The Olaroz Lithium Facility, located in Jujuy province in northern Argentina, is Allkem's flagship project.
Last month, Allkem shared its full-year results for the year ended on 30 June 2022.
Highlights of FY22 report card
Image Source: © 2022 Kalkine Media ®
Data Source- Company announcement dated 25 August 2022
Allkem further informed that it generated US$513.1 million in Group EBITDAIX and a consolidated net profit after tax of US$337.2 million over the net loss of US$89.5 million in 2021. The net financing expenses were US$13.8 million.
The Group's net assets climbed to US$3,081 million as of 30 June 2022, which was US$725 million as of 30 June 2021.
Metal and mining giant Liontown Resources (ASX:LTR) supplies battery minerals required by the EVs and energy storage industries.
The company revealed last week (2 September) that its independent non-executive director Craig Williams will be retiring from the board at the company's forthcoming Annual General Meeting (AGM) in November 2022.
Williams was a founding director of Liontown when it was launched on the ASX in 2006, and he has made a significant contribution to the company over his 17-year tenure, offering vital strategic, technical, and corporate knowledge.
The Liontown Board reached the Final Investment Decision (FID) to construct Kathleen Valley after securing high-quality foundational offtake agreements with Ford, Tesla, and LG Energy Solution, as well as financial commitments, according to the company's June 2022 quarterly report.
Image Source: © 2022 Kalkine Media ®
Data Source- Company announcement dated 28 July 2022
Piedmont Lithium (ASX:PLL), a prominent global developer of lithium resources, stated last week (01 September) that it had chosen Etowah, Tennessee's McMinn County, as the site of its proposed 30,000 metric ton per year (tpy) LHP-2 lithium hydroxide project.
Piedmont thinks Tennessee Lithium will be the largest lithium hydroxide processing facility built in the United States when it is completed and will begin production in 2025
Tennessee Lithium's 30,000 tpy lithium hydroxide output objective will complement the company's planned Carolina Lithium facility, bringing its total US-based production capacity to 60,000 tpy by 2026. The current annual production of lithium hydroxide in the United States is only 15,000 tpy.