China’s push to control over 30% of the global lithium supply by 2025 is an ambitious goal. Lithium is a critical mineral used in producing batteries for electric vehicles. As China seeks to meet the growing demand for EVs, it forces other nations to follow suit. The US and EU are now looking at China’s plans, which could spur healthy competition for lithium mining.
China’s plan to boost its lithium supply will impact the global market significantly. With EVs becoming increasingly popular worldwide, the demand for lithium is also on the rise. According to a report by Allied Market Research, the global lithium-ion battery market size was valued at $36.7 billion in 2019 and is expected to reach $129.3 billion by 2027, growing at a CAGR of 18.0% from 2020 to 2027. The report cites the growing demand for electric vehicles as a significant factor driving the growth of the lithium-ion battery market.
Investors can capitalize on this trend by investing in ETFs such as the Sprott Lithium Miners ETF (LITP) and the Sprott Energy Transition Materials ETF (SETM). The LITP ETF tracks the performance of global securities in the lithium industry, including producers, developers, and explorers. The SETM ETF offers a more diversified approach to investing in critical minerals such as lithium.
The US and EU are expected to increase their efforts to secure a reliable source of lithium in the coming years, which could lead to more investment in the lithium mining industry. In the US, companies such as Albemarle, Lithium Americas, and Piedmont Lithium are already working to increase the domestic production of lithium. The EU is also looking to secure a sustainable lithium supply, with countries like Portugal and Germany investing in lithium mining projects.
China’s push to control over 30% of the global lithium supply by 2025 is a significant development expected to impact the global lithium market. Investors can use this trend by investing in ETFs such as LITP and SETM. With the growing demand for electric vehicles, the need for lithium is only set to increase, making it a potentially lucrative investment opportunity for those who act fast.
China’s ambitious goal to control over 30% of the global lithium supply by 2025 is part of a larger strategy to dominate the EV market. With more and more countries committing to phasing out gasoline-powered vehicles in favor of EVs, securing a stable and reliable source of lithium has become a top priority for China.
According to experts, China’s control over the lithium supply chain could have significant geopolitical implications, as the country would have greater leverage over the global EV market. This has prompted other nations to ramp up their lithium mining efforts to reduce their dependence on the Chinese supply.
President Biden’s proposed infrastructure plan in the US includes significant investments in EVs and the domestic production of critical minerals, including lithium. The project seeks to create jobs and reduce the nation’s dependence on foreign sources of essential minerals, which could be crucial in meeting the growing demand for EVs.
Investors looking to capitalize on the growing demand for lithium can consider ETFs such as the Sprott Lithium Miners ETF (LITP) and the Sprott Energy Transition Materials ETF (SETM). These ETFs offer exposure to companies involved in the lithium industry and other critical minerals, allowing investors to benefit from the expected growth in the EV market potentially.
Overall, China’s push to control a significant portion of the global lithium supply underscores the importance of securing reliable sources of critical minerals to transition to a more sustainable future. While China’s efforts have sparked concerns about geopolitical risks, they have also spurred healthy competition and investments in lithium mining and other critical minerals worldwide.
