JV partner comments on Lithium DemandLithium Australia (LIT) MD, Adrian Griffin talks of "paradigm shift" and $20k p/t hydroxide. In December LIT tests produced 99.5% hydroxide from micas at 1st attempt.
Lithium, graphite and potash to shine in 2016 as battery storage, electric car demand grows along with food
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The price of lithium has surged on the back of growing global demand for high-tech devices, storage batteries and electric cars.
Lithium Australia recently took advantage of the positive sentiment by completing a $6.55 million share placement during one of the worst weeks in trading history.
It is a stark contrast to a major price drop in key bulk mineral commodities like coal and iron ore.
Both those commodities (lithium carbonate and lithium hydroxide) have had a very significant price rise late in 2015.
Adrian Griffin, MD, Lithium Australia
Managing director Adrian Griffin says the demand for lithium will only grow, especially for lithium-ion batteries.
"I think we're talking about a paradigm shift in the way people think about power," Mr Griffin said.
"That means renewables (renewable energy) and it means a move to portable power, and it doesn't matter if it's your laptop, your mobile phone, your car, or even your city.
"The types of power being generated in the future are going to require storage and lithium gives you the ability to store that power."
Adrian Griffin said lithium is traded as either a carbonate or a hydroxide, and the market is hungry for both.
"The lithium carbonate spot price at the moment about $US10,000 (AUD$14,362) a tonne and the spot price for lithium hydroxide is about $US14,000 ($20,110) a tonne," he said.
"Both those commodities have had a very significant price rise late in 2015.
"If you take lithium carbonate as the benchmark, it was trading low $US7,000 ($10,054) early December and closed December at $US10,000 ($14,362)."
Lithium Australia has potential projects in Australia, Mexico and the United States.
Graphite price steadies but demand expected to continue
Also being buoyed by the demand for modern storage batteries is the abundant commodity graphite.
One local company that has what it believes to be a bankable deposit of graphite at its Caroona deposit in South Australia is Archer Exploration.
Managing director Gerard Anderson says graphite is an essential component in lithium-ion batteries.
"We're able to produce very high purity graphite concentrates, grading in excess of 99 per cent carbon," Mr Anderson said.
Archer Exploration has also conducted research with the University of Adelaide to use graphite from Caroona to produce graphene.
"Graphene is a single-atom thick layer of graphite," he explained.
Although graphite is relatively abundant there's only been a small number of projects outside of China developed over the last few decades
Gerard Anderson, MD, Archer Exploration
"That opens up tremendous opportunities, particularly in the electronics business.
"That would primarily be used in things like lithium-ion batteries, high quality lubricants, high quality super capacitors, photovoltaic cells, inks and other products.
"So whilst it's still very much in the research phase, it's indicates there are enormous potential markets for graphene."
Gerard Anderson believes the price of graphite has peaked for now, but it is dependent on grade and quality.
"The peak of the graphite price was around 2014 and in 2015 there were quite a number of new entrants (into the market)," he said.
"It's a business where there are barriers to entry and not all graphite projects will be developed.
"Only those that have significant competitive and comparative advantage that will get under production, so although graphite is relatively abundant there's only been a small number of projects outside of China that have been developed over the last few decades.
"Graphite is selling for $US600 ($862) a tonne at the moment, and then you've got flake graphite which sells for around $US12,000 to $US13,000."
https://www.abc.net.au/news/2016-01-13/lithium-graphite-the-new-mining-superstars-potash-ready-to-shine/7081388