IS LITHIUM POISED FOR A RESURGENCE?

AFTER A TOUGH 2024, WHAT CAN WE EXPECT FROM LITHIUM IN 2025, AND WHAT ROLE DOES AUSTRALIA HAVE TO PLAY?

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The global lithium market is set for a recovery in 2025, as the supply–demand thematic regulates and electric vehicle (EV) demand continues to rise.

The Australian mining sector, with its abundance of active lithium mines and reserves, will be at the forefront of this opportunity.

Australian Mining takes a closer look at the global lithium dynamic.

A demand surge

Global lithium consumption is projected to rise by 26 per cent to 1.46 million tonnes in 2025, an increase from 1.15 million tonnes in 2024, according to Benchmark Source.

This increase will be fuelled by accelerated EV adoption and expanding renewable energy infrastructure, both heavily reliant on lithium-ion battery technology.

In terms of pricing, the Federal Government’s Office of the Chief Economist predicts a rebound in spodumene prices, estimating a rise to $US1156 per tonne by 2025 from a low of $US750 per tonne in 2024.

This recovery signals renewed confidence in the industry, providing a potential revenue boost for Australian miners.

Australia leading the way

Australian miners are capitalising on lithium’s positive long-term outlook with strategic investments and innovative technologies.

Pilbara Minerals, one of the nation’s leading lithium producers, announced in August 2024 its ambitious plans to expand to two million tonnes per annum of spodumene production, with its recently acquired Colina project in Brazil set to play a critical role.

Mineral Resources’ (MinRes) lithium business is characterised by strategic joint ventures and high-grade mines.

In partnership with Albemarle, MinRes oversees the Wodgina operation in Western Australia, while the company also operates the Mt Marion mine in WA alongside Jiangxi Gangfeng Lithium.