EV-Volumes.com just released their global EV sales update for H1-21.  EV sales increased 168% in H1-21 over H1-20, and they are forecasting growth of 98% for the full year. This is about twice the level of growth I was expecting.  I plugged this number into my lithium supply and demand model – and it blew it up!

TBH, I don’t think this level of growth can be achieved due to supply chain constraints, including battery quality lithium supply. But it does support a view that current forecasts of lithium demand over the next 5 to 10 years are understated, and will be consistently upgraded over that time.

As the battery and EV industry starts preparing for 2022, I expect lithium spot pricing (admittedly only a small % of the total market) will be generating provocative headlines by the end of this year.

Tough day in the market today, but my faith in this sector, and LAC in particular, is not shaken.