Lithium Demand Is Staying High
In 2017 lithium prices were rising and everyone predicted they would continue upward. In 2018, some analysts, including Morgan Stanley and Woods Mackenzie, began to expect lithium prices to fall back.
But for QMC Quantum Minerals and its investors, whether Morgan Stanley is right or wrong will matter very little. At the bearish analysts lowest projections, lithium prices will still remain so high that a good resource which is run well, should surely prove successful.
We have entered a whole new phase in the history of lithium. Previously, the industrial world could get by with modest amounts. The US Geological Survey has kept data on lithium use over the years, and it tells quite a story.
In 2007, lubricating greases and pharmaceuticals added up to more demand for lithium than did lithium consumption in lithium ion batteries. Batteries absorbed about 18% of the lithium supply at the time. Ten years later, that jumped to 39% for batteries.
As many analysts continue to predict, this pace will only accelerate for the next several years.