Lithium – an important raw material for the economy

The automotive industry needs lithium, the "white gold" or "new oil" for electric vehicle batteries.

Lithium is needed almost worldwide; by 2030, Europe’s lithium demand could be 73,000 tons or more. Germany needs lithium imports. Perhaps lithium can be mined in the Palatinate. There is a lot of research going on in this country into lithium extraction using geothermal energy. In Rhineland-Palatinate, attempts are being made to extract and process lithium. With the help of geothermal plants, thermal water containing lithium is to be pumped a good 3,000 meters upwards. Once the lithium has been extracted, the water can be fed back into the ground.

The price of lithium has currently slipped quite a bit, as there has been a supply glut. About a year ago, the price of the raw material was still at a new all-time high, but today the price looks very different. But the demand for lithium is high, which will also be reflected in lithium shares. The weakening economy in China and lower-than-expected electric car sales were certainly partly to blame for the fall in prices. In the longer term, however, things look promising for the electric vehicle sector. This is because the global trend is moving away from combustion engines towards electric cars. This should also lead to a recovery in the price of lithium.

Experts from Deutsche Bank and Citibank believe that there will be a supply deficit on the lithium market by 2025 at the latest. However, there are also voices that speak of an oversupply by 2030. Nevertheless, the long-term prospects for lithium look very good.

Lithium is available in Targa Exploration’s – https://www.commodity-tv.com/ondemand/companies/profil/targa-exploration-corp/ – projects. The projects are located in Quebec, Saskatchewan, Manitoba and Ontario. The company also has a silver-gold project in the Yukon.

Green Shift Commodities – https://www.commodity-tv.com/ondemand/companies/profil/green-shift-commodities-ltd/ – also deals with important battery metals in South America and Ontario. These include nickel and lithium.

In accordance with §34 WpHG I would like to point out that partners, authors and employees may hold shares in the respective companies addressed and thus a possible conflict of interest exists. No guarantee for the translation into English. Only the German version of this news is valid.

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