The surge in lithium demand driven by the wave of electric cars accelerates the expansion of lithium mining giant Yabao

ALB.US of the US, the world's largest lithium producer, is expanding quickly and evaluating new opportunities as buyers of battery metal lithium struggle to keep up with soaring demand for electric vehicles.

It is understood that Abel plans to open sales at a new plant in Chile in early 2022 and an expanded plant in Western Australia around the middle of the year, while restarting another sealed lithium mine. Meanwhile, the company is evaluating bids for new contracts in Chile and looking for possible acquisition opportunities in Australia, North America and Europe, executives said on Thursday.

The sharp tightening of the lithium market, a key component of rechargeable batteries, more than doubled the benchmark index in 2021. With little or no lithium stocks at present and demand more than tripling by 2025, buyers are snapping up as much as they can.

Kent Masters, chief executive of Abel, said the company was "moving forward as fast as possible" and that it was "more interesting to renew contracts in today's environment than it was a year and a half ago".

Once the conversion capability is in place, Abel may go a step further in its Wodgina joint venture in Australia. In addition, Kent Masters added that it planned to "go a little further", possibly bringing resources to the US.

In Chile, Abel of the United States purchased tender documents for a new round of contracts provided by the outgoing government. Eric Norris, head of the company's lithium mining business, said with Kent Masters that the company was evaluating whether to bid close to its existing business, including asking what the next government would think of the contracts.

"this is a very complex political environment and we are now conducting due diligence on the process," Eric Norris said.

In addition, Abel does not rule out joining the wave of mergers and acquisitions sweeping the industry, but the company is now focused on converting assets rather than exploiting resources. Eric Norris said it would still keep an eye on hard rock projects in Western Australia and "keep a close eye" on resources being developed in North America and Europe.