One of the world’s leading lithium producers, Albemarle Corp., has said that average realised pricing for lithium is expected to be up by between 225% and 250% year-on-year, as demand from electric vehicle battery manufacturers continues strong.
Albemarle said last week in commentary accompanying second quarter results that its own earnings are expected to grow approximately 500% year-over year, allowing that output volumes will also increase by between 20% and 30%.
Albemarle is plugged right into the heart of the automotive industry, supplying Tesla amongst many other customers.
Albemarle’s chief executive Kent Masters said he expected the market to remain “tight” for several years.
The lithium price has risen almost eightfold since the start of 2020, although it now appears to have plateaued at the current record level of around US$70,000 per tonne.
Albemarle has lifted its earnings forecast three times this year.
International Energy Agency has estimated that the world needs another 60 lithium mines by 2030 to meet all the decarbonisation and electric vehicle plans of national governments.