Lithium batteries in the automotive industry help lithium and cobalt markets
The global lithium-ion battery (LIB) market was valued at $29.68 billion in 2015 and is expected to reach $77.42 billion by 2024, according to Transparency Market Research. This growth is projected to be achieved at a CAGR of 11.6% during the forecast period. The research indicates that an increasing shift toward clean and sustainable energy in the automobile industry plays a major role in the global lithium-ion battery market. High-capacity batteries are in higher demand because of their use in HEVs, BEVs, and EVs. An increasing shift toward clean and sustainable fuels in the automobile industry is the chief driving factor for the growth of the global lithium-ion battery market. An essential component of the LIB market is the chemical element, cobalt. Like nickel, cobalt is found in the earth's crust only in chemically combined form. According to Benchmark Mineral Intelligence, 75% of lithium-ion battery cathode capacities are expected to contain some volume of cobalt by 2020. Some key companies involved either in cobalt mining and production or lithium-ion battery development are LiCo Energy Metals Inc., First Cobalt Corp., Katanga Mining Limited, Panasonic Corporation, and Lundin Mining Corp.
"The range of EVs can be improved, and the fuel consumption of hybrid EVs can be reduced using lithium-ion batteries. The diverse types of rechargeable batteries, distinguished by the materials used for the electrodes and electrolytes, have a short range due to lower energy density and have a short operational life when compared with that of lithium-ion batteries. Growth in vehicle fleets leads to a proportionately faster change in the acceptance of EVs, thereby providing growth prospects for the global lithium market," explained Mahitha Mallishetty, a Metals and Minerals Research Analyst at Technavio.