prices:
The metal is produced electrolytically from a mixture of fused lithium and potassium chloride. In 1998 it was about US$ 43 per pound ($95 per kg). Chile is currently the leading lithium metal producer in the world, with Argentina next. Both countries recover the lithium from brine pools. In the United States lithium is similarly recovered from brine pools in Nevada.
The global market for lithium batteries has been increasing by more than 20% per year in the past few years. Lithium-ion and lithium-polymer batteries appear to have the greatest potential for growth. The world market for these rechargeable batteries was estimated to be $4 billion in 2005.
Prices of lithium carbonate rose by 20% in 2005 and growth of up to 25% is forecast by Roskill Consulting Group for 2006, bringing prices back to the peak levels seen prior to SQM's entry into the market in 1996. New capacity due on-stream in Chile, Argentina and China is forecast to alleviate the upward pressure on prices after 2007.
Consumption of lithium increased by 4-5% per year between 2002 and 2005, driven by demand in lithium secondary batteries. Batteries accounted for 20% of total consumption in 2005, a rise from under 10% in 2000.
Continued expansion in the portable electronic products market and commercialization of hybrid electric vehicles using lithium batteries suggest growth of up to 10% per year in lithium carbonate consumption in this market through 2010.
Between 2002 and 2005, lithium minerals production rose by 7% per year to reach 18,800 tonnes Li. Chile and Australia account for over 60% of total output. FMC Lithium of the USA, Chemetall of Germany and SQM of Chile continue to dominate production of downstream lithium chemicals.
China may emerge as a significant producer of brine-based lithium carbonate towards the end of this decade. Potential capacity of up to 45,000 tonnes per year could come on-stream if projects in Qinghai province and Tibet proceed.