Softbank has decided to invest CAD$99.1 million into the Canadian company Nemaska Lithium recently, and then it will own 9.9% share of Nemaska Lithium. This fund will become the largest technology fund in the lithium area. The investment prompts positive market reaction immediately, many TSX- and TSXV-listed stocks jumped over 100 percent in 2017 as the investors are interested in lithium market.
Lithium Application in Different Industries
Lithium emerges with its multiple usages. It’s the key to produce high-powered battery of electric vehicles. And electric vehicle market’s growth drives the demand for lithium-ion batteries in these years. Moreover, vehicle producers are making effort to make use of the qualified lithium-ion battery to keep pace with the market trend.
Lithium-ion battery is also an indispensable part of mobile phones. It plays a role to show the competency of mobile phone producers. Thus the producers also try to improve the quality of the battery. And from the perspective of customers, they will take battery performance into consideration when they decide to buy a mobile phone.
You may neglect that lithium is also used for treating illness. It takes effects in treating depression, schizophrenia, eating disorders, anemia, headaches, alcoholism, etc. When it is applied in the medical area, pharmacist and doctors should pay attention to the dosage to avoid patients’ adverse reactions.
The lithium application in different industries makes it attract large numbers of investors to take part in the lithium race.
- Prediction of Lithium Market
Lithium mining is predicted to become more popular with the increasing demand. Take the lithium-ion battery as an example, whose demand is “expected to grow six or seven times by 2026” according to related statistics. As lithium is a limited resource, the mining for it will be more competitive. And lithium should be got with the help of proper technology. The advanced technology of International Battery Metals could put lithium into production rapidly. Therefore, competency in the lithium market will contain factors like technology and strategy.
As for the prediction of lithium’s price, experts have different opinions. Institutions like Morgan Stanley think it will decrease as a huge surplus will appear in the market in 2022. But some others think it is a negative assessment because the market demand for lithium will be more than their prediction. Woodmac thinks supply will start to outpace demand from 2019 and price levels will decline.
In addition to these predictions, some challenges should be mentioned as well. For instance, some people are worried about safety of lithium-ion battery, thus the producers need to improve the technology to ensure safety. What’s more, enterprises still need to do a lot to expand the market share of lithium. Like the electronic vehicle producers, they should promote their products well and carry out reasonable price strategy to attract the customers. When the electronic vehicles are widely accepted by customers, the lithium market share will be expanded as well.
For enterprises or investors related to lithium, it’s smart to keep keen eyes on the whole market. Only with an accurate strategy can they make achievements in this area.