Lithium plays a crucial role in powering electric vehicles (EVs) and is a key component in the clean energy transition. As a highly sought-after mineral, lithium offers significant investment opportunities.
1. Declining Lithium Prices
One of the critical factors in investment decision-making is assessing the value of an asset relative to its price. Lithium, essential for EV batteries, has seen a significant price drop over the past year:
| Date | LiOH·H₂O* | Li₂CO₃** |
|---|---|---|
| Feb 2023 | $76 | $71 |
| March 2023 | $71 | $61 |
| Apr 2023 | $43 | $33 |
| May 2023 | $43 | $33 |
| June 2023 | $47 | $45 |
| July 2023 | $44 | $40 |
| Aug 2023 | $35 | $35 |
| Sept 2023 | $28 | $27 |
| Oct 2023 | $24 | $23 |
| Nov 2023 | $21 | $21 |
| Dec 2023 | $17 | $16 |
| Jan 2024 | $14 | $15 |
| Feb 2024 | $13 | $14 |
*Note: Monthly spot prices were recorded around the 14th of each month.
*Lithium hydroxide monohydrate MB-LI-0033
**Lithium carbonate MB-LI-0029
2. Falling Lithium-Ion Battery Prices
The decline in lithium prices is paralleled by a decrease in the cost of lithium-ion batteries, driven by economies of scale and lower commodity costs. According to BloombergNEF, the price of Li-ion batteries has dropped by 82% from 2013 to 2023.
| Year | Price per KWh |
|---|---|
| 2023 | $139 |
| 2022 | $161 |
| 2021 | $150 |
| 2020 | $160 |
| 2019 | $183 |
| 2018 | $211 |
| 2017 | $258 |
| 2016 | $345 |
| 2015 | $448 |
| 2014 | $692 |
| 2013 | $780 |
3. Sustainable EV Adoption
A key driver behind the demand for lithium is the growing adoption of EVs, which have become more competitively priced with traditional vehicles. For instance, Tesla’s average transaction price fell by 25% from 2022 to 2023, making EVs a more viable option for consumers.
| Manufacturer | Sept 2022 | Sept 2023 |
|---|---|---|
| BMW | $69,000 | $72,000 |
| Ford | $54,000 | $56,000 |
| Volkswagen | $54,000 | $56,000 |
| General Motors | $52,000 | $53,000 |
| Tesla | $68,000 | $51,000 |
4. Growing Electricity Demand in Transport
The International Energy Agency (IEA) forecasts a substantial increase in global electricity demand for transport by 2030, driven by the proliferation of EVs:
| Transport Type | 2022 | 2025 | 2030 |
|---|---|---|---|
| Buses | 23,000 GWh | 50,000 GWh | 130,000 GWh |
| Cars | 65,000 GWh | 200,000 GWh | 570,000 GWh |
| Trucks | 4,000 GWh | 15,000 GWh | 94,000 GWh |
| Vans | 6,000 GWh | 16,000 GWh | 72,000 GWh |
The Lithium Investment Opportunity
Investing in lithium presents a compelling opportunity as both lithium and battery prices have significantly decreased, and EVs are becoming more affordable. With the anticipated surge in demand for clean energy, particularly in transportation, the value of lithium is set to rise.
EnergyX is well-positioned to capitalize on this growing demand with its innovative lithium extraction technology, capable of extracting 300% more lithium than current methods. Now is the time to consider investing in this vital resource.
