Bacanora Lithium Ltd (LON:BCN) thinks its previous forecasts for future lithium demand are increasingly looking overly conservative.
AIM-quoted Bacanora is in the process of securing the financing to start construction at its Sonora lithium project in Mexico, which is expected to produce 35,000 tonnes of the silvery-white metal a year.
WATCH: Bacanora Lithium to spin out Zinnwald as finance discussions advance for flagship Mexico project
It had previously estimated that global demand for lithium would reach 450,000 tonnes per annum by 2025, up from 250,000 tpa today.
But thanks to the rapid growth of the electric vehicle and energy storage industries, Bacanora reckons those numbers are probably “on the conservative side”.
“Currently, for instance, UBS is forecasting demand will hit 900,000 tpa by end of 2025, whilst Seeking Alpha believe demand could be more like 1.3mtpa by 2025,” chairman Mark Hohnen will tell shareholders at today’s annual general meeting.
“It is numbers like these, particularly when one considers approximately 250,000 tonnes of lithium are expected to be produced in 2018, that lie behind our firm belief that Bacanora is in the right commodity at the right time.”
Bacanora shares were down 4.9% to 24.5p on Thursday morning.