Lithium Industry Overview

Lithium Lithium Mining Process

• Lithium is a soft, silvery-white metal that heads
Group 1. Conventional Lithium Brine Hard Rock / Spodumene
Extraction Lithium Extraction
• Lithium is a highly reactive Alkali metal that offers
excellent heat and electrical conductivity. Cathode Material -Final Use
Conventional Lithium Brine Extraction Method
LCO
Source Raw Material Output Li-
Product
LMO
Salt Pan – Brine
Liquid Liquid Lithium Li- carbonate
From Earth Core Solution NCM 111

NCM 622
Hard Rock / Spodumene Lithium Extraction

Mine – LFP
Solid Rock Spodumene Li-hydroxide
A lithium aluminum silicate mineral (LiAlSi2O6) in the pyroxene family, NCM 811
an important ore of lithium and a source of ceramic materials

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NCA
Lithium Extraction & Triangle
Manufacturing Method Pros Cons
Conventional Lithium • Abundant Reserves • Slow Extraction Process
Brine Extraction (highly • Lower Environmental Impact, Energy • Weather Dependency
Used) Consumption, Operating Costs • Water and Ecosystem Impact
• Higher Purity Lithium • Environmental Concerns
Hard Rock / • Higher Concentrations • Higher Environmental Impact
Spodumene Lithium • Faster Extraction Process • Energy Intensive
Extraction • Predictable Production • Higher Operating Costs
• Lower Water Usage • Lower Lithium Purity

Lithium Triangle

• Location: The Lithium Triangle refers to the intersection of Argentina, Bolivia, and Chile, a region rich in lithium
resources.
• Lithium Reserves: This area contains vast lithium-rich salt flats (salars) with valuable brine deposits, making it a major
global source of lithium production.
•

• Global Significance: The Lithium Triangle plays a crucial role in meeting the growing demand for lithium-ion batteries
used in electric vehicles and renewable energy storage systems.

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Lithium Reserves Across the World
Major Contributing Countries Top Lithium Producing Countries (in MT)

Canada : 3.0 MMT Australia 61000

Russia : 1 MMT Chile 39000

USA : 9.8 MMT China 19000

China : 6.8 MMT
Argentina 6200
Mexico : 1.7 MMT India : 5.9* MMT
Brazil 2200

Rest of the world 2000

DRC : 3.0 MMT
Bolivia : 21.00 MMT Brazil Other
Argentina 2% 2%
Australia : 7.30 MMT
5%
Chile : 9.80 MMT Argentina : 19.00 MMT China
14%
Lithium Triangle Australia
Production by countries (in %) 47%

*Geological survey of India in May 2023 confirm that Chile

30%
Indian state J&K have 5.9 MMT lithium deposites.

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Lithium Global Production & Consumption
Consumption by Counties (Value in MT)*(E)
Global Consumption & Production Growth (Value in MT)
Argentina 1,000
Chile 2,000
Canada 3,000

1,34,000
Australia 4,000

130000
India 12,000 85 % 195 %
South Korea 5,000
Germany 6,000

107000
Japan 8,000

95,000
United States 16,000

95000
China 43,000

86000

82500
Consumption by End use (in %)

69000

56,000
55,000
Other

49,100
45,500
12%
Ceramics &
glass
14%
Batteries
74%

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Lithium – India Perspective
India Consumption & Production of Lithium(Value in MT) India Consumption & Import of Lithium(Value in MT)
• India doesn’t have any lithium production, but the recent
discoveries of lithium deposits in Jammu & Kashmir are 41 %
expected to change this in the near future.

12000
• Currently, India imports lithium and relies primarily on China

10,029
and Hong Kong for its supply. China and Hong Kong together
account for 96% of the total imports.

8522.4

7237.6

7192.3
Future of Lithium in India

• Lithium is a crucial component of batteries. With a projected

18% compound annual growth rate (CAGR) in the demand for
electric vehicles (EVs), the demand for lithium in India has
been significantly boosted. 2018-19 2019-20 2020-21 2021-2022 2022-2023

• Lithium demand will increased with 18.5 % CAGR.

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Lithium – Industry Challenges & Price Trends
• Limited supply: Lithium is a relatively rare
Lithium Carbonate at SMM (CNY/T)
element, and the world's known reserves are
limited.
518798.2
• High cost: The extraction and processing of
lithium is a complex and energy-intensive 28.4 %
process, which drives up the cost of lithium.
• Environmental impact: The mining and
processing of lithium can have a significant 269645.6
environmental impact, including water pollution 217500
and land degradation. 169337.4
• Technical challenges: There are still some
technical challenges that need to be addressed 79815.5
49614.5 46379
in order to improve the efficiency and
sustainability of lithium extraction and
processing.

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• Geopolitical risk: The lithium industry is
concentrated in a few countries, which could
make it vulnerable to geopolitical risks.
• Social Issues: Child labor and local community
impact can arise from mining activities.

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