Albemarle Corporation, a global leader in lithium mining and production, forecasts that the market for electric vehicles (EVs) in China will expand by at least 3 million units this year, representing a 40% increase.
This will lead to a rise in demand for lithium metal in the market for automobiles, which is the largest in the world.
Phased-out subsidies for EVs
Albemarle stated that so far, the steps that China’s government has taken to phase out subsidies for electric vehicles have only had a “limited impact” on demand for EVs.
The Lunar New Year holiday was cited as the culprit for January’s lackluster sales figures for automobiles in China.
Soaring demand for lithium
Executives have stated that Chinese lithium consumers are not decreasing their order volumes, and the country’s inventories of cathodes and battery parts are shrinking, both of which are precursors of increased demand for the battery metal.
Our biggest challenge is managing the tremendous growth opportunity in front of us
Kent Masters, Chief Executive of Albemarle stated on quarterly results
