Surge Battery Metals Inc. NILIF

Globe/wire say Canaccord sees lithium demand doubling

[ETalien]

Globe/wire say Canaccord sees lithium demand doubling

 

2024-10-16 08:31 ET - In the News

 

The Globe and Mail reports in its Wednesday edition that Rio Tinto's acquisition of lithium miner Arcadium Lithium may signal more activity in the energy transition sector as investors look to enter the market. A Reuters dispatch The Globe reports that the sector's valuations have been affected by falling metal prices. Rio Tinto boss Jakob Stausholm said the weak market presented an opportunity to acquire high-quality assets at the right price, leading to its $6.7-billion (U.S.) purchase. While lithium prices are not expected to rebound soon, it is anticipated that demand will exceed supply by 2030. Consequently, Rio and other companies are likely to see the appeal of merging with existing firms. This potential increase in mergers would indicate that companies are taking a long-term perspective on the rising value of lithium and recognizing the need to grow through acquisitions to play a larger role in the energy transition. Demand is expected to more than double by the end of the decade to about 2.7 million tonnes of lithium carbonate equivalent, from around 1.2 million tonnes this year, according to broker Canaccord Genuity Group. Lithium prices are down about 80 per cent from their record at the end of 2022.