Cochilco said demand for lithium for electric vehicles had been muted this year because of the coronavirus pandemic, expected at around 75 000 t, but would surge to 1.4-million tonnes by 2030.Meanwhile, demand not associated with electromobility but with cell phones and other consumer goods would reach 377 000 t in 2030, compared with the 242 000 t expected for this year.

Lithium prices have been on a steady decline in recent years amid festering global trade tensions, the scaling back of electric vehicle subsidies in China and a wave of new production. The coronavirus pandemic and associated economic downturn has clouted demand, prompting some miners to put off near-term investments.

However, Cochilco predicted a rise in demand over supply would firm prices by 2025/26.

It foresaw Australia and Chile maintaining by slimmer margins their leads in production, with growing competition from the United States and Argentina reducing Australia’s global supply from 48% today to 31% by 2030, and Chile’s from 29 to 17%.