Proactive Investors - Run By Investors For Investors

Bacanora reckons lithium demand is growing much faster than it originally anticipated

Only two months ago, Bacanora forecast that global lithium demand would hit 450,000 tonnes per annum by 2025, but some analysts now believe that figure could be upwards of 1mln
electric car
Demand is being driven by industries such as electric vehicles and energy storage

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.

View full BCN profile View Profile

Bacanora Lithium Ltd Timeline

Related Articles

April 29 2019
Kore Potash has completed a definitive feasibility study on the Kola project
March 21 2019
W Resources is about to make a name for itself as a serious European-based supplier of tungsten
Lindi Jumbo is in southeast Tanzania, 200 kilometres from Mtwara port
April 23 2019
This month's offtake and marketing agreements come after a 'derisking' update to its DFS.

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use