Lithium
Memo to the Lithium Big 3: “De-Nile is not just a river in Egypt!” Canaccord Adams Senior Mining Analyst Eric Zaunscherb
explained that last week (like most weeks!) was busy in the lithium market, even aside from the usual battery plant investments
(Sanyo, US$2.13 billion over three years on batteries and solar cells), battery technology grants (US$106 million last week from
the Obama Administration), and battery deals (LG Chem to supply lithium-ion batteries to Volvo). Speaking to the demand side
of the equation, industry consultants Frost & Sullivan issued a report on lithium-ion batteries. Noting financial constraints
through 2009 and 2010 and the impact on consumers and automobile sales, the consultants now look to “explosive growth”
going forward. Citing “superior performance characteristics that make Li-ion batteries the preferred choice of industry,” Frost &
Sullivan expects lithium-ion batteries “to dominate the future of the battery industry, especially with EVs and HEVs poised for
mass production.”