After Russia’s invasion of Ukraine and the subsequent sanctions, the race is on around the world to find new sources of lithium. The prospect of running out of the rare element is a worst-case scenario for many countries. After all, it is a crucial component in the lithium-ion batteries used in electric vehicles. As EV demand rises off record gas costs, so too are lithium consumption and lithium prices. Africa Getting Much More Attention from Lithium Seekers
Countries like China are currently focusing their lithium search in Africa, which has proved a treasure-trove of “green” minerals. China is not only one of the largest EV markets in the world, but it produces around 80% of global lithium. Still, the country wants more. It’s estimated that half of the world’s total lithium resources are in South America and Australia. However, Africa is now being looked at with renewed interest.
According to this analysis by news agency Reuters, companies around the world are re-considering projects they’ve previously overlooked. Moreover, China’s interest in Africa has helped spur dozens of nations to follow suit. Back in May, the leading African mining countries gathered for a unique “Investing in African Mining Indaba” in Cape Town. The goal was to discuss the significant business potential of green metals and other valuable minerals.
Source: “The World Is Scrambling For Lithium Supply”, Oil Price