The worldwide battery supply chain may run out of lithium again before the end of this decade.
The world may face a lithium shortage as demand for the metal rises, with some researchers predicting a deficit as early as 2025. Others, on the other hand, believe that the shortfall will occur over a longer period of time. BMI, a Fitch Solutions research unit, forecast a lithium supply shortage by 2025. BMI ascribed the shortfall to China's lithium demand exceeding its supply in a newly published research.
While further lithium mines and mining exploration projects coming online could meet rising demand, Rystad Energy predicts that this would only extend the runway for a few more years. Hundreds of lithium mines are now being explored, according to the energy research group, but the intricacy of the geology and the time-consuming permission process remain obstacles.
According to Refinitiv statistics, the world currently has only 101 lithium mines. While this could indicate a global lithium excess next year, supply chain disruptions could begin in 2028. Though global lithium supply may be ample in the coming years, regional supply mismatches are unavoidable.
