SHANGHAI, Dec 29 (SMM)  –  The global lithium resources will present a supply deficit of 9%-12% in 2021-2022, and the users have to rely on raw material inventory due to the raw material shortages. From 2023 to 2024, the release of lithium resources will accelerate significantly amid high lithium prices, which will shift the market to a small surplus. In 2025, driven by the drastic growth of energy storage market, lithium resources will re-enter a period of short supply.

In 2021, the global lithium carbonate output is estimated to total 410,000 mt, a year-on-year increase of 36%. The higher output will be contributed mainly by the expansion at SQM, which is an overseas firm, as well as Chengxin Lithium and Lanke Lithium, which are Chinese firms. With the growing demand for lithium carbonate from the global new energy vehicle, 3C, energy storage and other sectors, it is expected that the compound growth rate of global lithium carbonate production will reach 28% in the next five years. The global lithium carbonate supply deficit may ease in 2023-2024.