Driving the gains is an increasingly buoyant sentiment from
Meanwhile,
At the core of the EV's frenzy are optimistic projections that the electric vehicles market will reach 26,9 million units by 2030 from an estimated 3,3 million units in 2019, at a CAGR of 21,1% during the forecast period, according to "Markets and Markets." With such bullish developments in the segment, it is vital to also look across the EVs value chain, upstream where the raw materials are concerned.
The surge in EVs spells increased demand for lithium and nickel, vital minerals in the lithium-ion batteries used in the manufacture of EVs. Lithium is very much a rare mineral, which is still in its infancy in terms of production in
There is a boom in the global battery metals mining space, owing to a global focus on environment-friendly power initiatives, or "green" energy. Manufacturers commonly use lithium carbonate or lithium hydroxide in these batteries rather than the lithium metal. Although lithium is a key ingredient in lithium-ion batteries, they also include other metals such as cobalt, graphite and nickel.
According to the most recent stats issued by the
The country's privately owned Bikita Minerals is currently the only lithium producer, and reportedly holds one of the world's largest-known lithium deposits at over a million tonnes, while three other miners are working towards production.
The project is under way at the old Kamativi mine that had previously been mined for tin. None of the lithium was ever recovered and now sits in the tailings dump as spodumene.
The Arcadia Lithium project is the flagship of ASX-listed
The third player, Mirrorplex is a local exploration company which has in recent years been mobilising for investment. In a key development, "Mining Index" reported in
In the interim, the price of spodumene concentrate (feedstock for lithium hydroxide production) continues to fall on the back of rapid expansion in
Historically, lithium prices have traded around
However, with mounting demand from electric carmakers like
This translates to huge possibilities for
Mabunda is an analyst and TV anchor at Equity Axis, a leading
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