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Global competition is fiercer. Lithium replacement phone batteries supply growth in the future Apr 25, 2018

Australia and Chile are the world’s two largest lithium mining nations. However, due to different geological and climatic conditions, they differ greatly in the way they produce lithium.

The Greenbushes mine in Western Australia supplies one-third of the world's lithium mines. Its production process includes mining hard rock and performing on-site preliminary treatment including crushing, grinding and flotation.

The lithium mine in Chile needs to extract lithium-rich brine from salt lake. The brine was concentrated in the evaporation tank for several months before on-site preliminary treatment. The main lithium mining area in Chile is located in the northern part of the country and is part of the so-called global "Lithium Triangle", including the border areas of Chile, Argentina and Bolivia.

Lithium production in Western Australia will grow strongly

The Greenbushes lithium mine area is undergoing project expansion. In the past two years, the two mines in the east of the state, Mount Cattlin and Mount Marion, have also started production. This year, the output of the three new mines in the Pilbara region will also increase, while the remaining mines are at different planning stages.

Lithium production in South America will increase significantly

Chile's two major lithium producers SQM and the United States Albemarle reached an agreement with the Chilean government in the first quarter of this year to increase its production. In Argentina, the main lithium producer FMC plans to expand its lithium production.

Other mining countries, such as Canada, Mexico, and Africa, have also begun to pay more and more attention to lithium production.

In the application of     , lithium is usually processed into super-grade lithium carbonate or lithium hydroxide, which is more expensive but also more energy-efficient. With the development of the mining industry, processing is also increasing. Australia, the United States, South America and China are all building or planning to build and expand their factories.

China has played a significant role in the global lithium processing industry. China also provides the world's largest lithium-ion battery market. Chinese mining companies are actively engaged in mining, processing, and purchasing lithium ore and lithium concentrates in other parts of the world. For example, in Australia, Chinese company Tianqi Lithium is one of the operators of the Greenbushes lithium mine, while other Chinese companies hold shares in Australian Lithium Mining Company.

Li prospects optimistic

Most replacement phone batteries companies are optimistic about the future. Orocobre, an Australian company, believes that "in the future, lithium demand will increase beyond the expected new supply." Especially in the context of strong growth in replacement phone batteries, some analysts believe that by 2025 the world will reach at least 250 million in production. In 2017, there were only about 100 million replacement phone phones in the world.

However, not everyone agrees that lithium supply will lag behind demand for some time. For example, in a report released last month, both Morgan Stanley and Wood McCann predicted that lithium supply would rise from next year to meet global lithium demand. Morgan Stanley expects lithium prices to drop by about 45% by 2021.

There is no doubt that in the next few years, the supply and demand of lithium will have a strong growth.