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Lithium (Li) is a white silvery metal that reacts vigorously with water. It is a chemical element with atomic number 3. This alkali metal, under standard conditions, is the least dense metal and least dense solid element. Like all alkali metal, this metal is highly reactive and flammable and hence needs to be kept in an inert environment, which could be a vacuum, kerosine, or any mineral oil. As soon as this metal comes in contact with the air, it corrodes and turns to black tarnish.
Being a highly reactive alkali, the metal is not found in its native state. Its main sources are igneous rocks and brine. Some of the sources of lithium include:
As pointed above, lithium in nature is available in the form of mineral-rich brine ~ 10 metres below the briny lakes of high-altitude salt flats. In the first phase of the extraction process, miners drill down through the crust and then pump the brine up to the surface into evaporation pools and are left for months. This creates salty mud, which includes a combination of manganese, potassium, borax, and lithium salts. These salts are then moved to another open-air evaporation pool.
After 1 to 1.5 years, the mixture is adequately distilled to extract the lithium carbonate. This lithium carbonate is used in lithium-ion batteries.
The most important use of lithium is in rechargeable batteries used in mobile phones, laptops, cameras, electric vehicles, etc.
Other than this, Lithium is also used in some non-rechargeable batteries for things like heart pacemakers, toys, and clocks. They are also made into an alloy with aluminium and magnesium to make them lighter and improve their strength. A magnesium-lithium alloy is used for armour plating. Aluminium-lithium alloys are used in aircraft, bicycle frames, and high-speed trains.
Lithium oxide is used in special glasses and glass ceramics. Lithium chloride is among the most hygroscopic materials and is used in air conditioning and industrial drying systems. Lithium stearate is used as an all-purpose and high-temperature lubricant. Lithium carbonate is used in drugs to cure manic depression, although its action on the brain is yet not fully understood. Lithium hydride is used as a source of storing hydrogen for use as a fuel.
A lithium battery has an anode, a cathode, separator, electrolyte, and two current collectors. Anode and cathode store lithium. The electrolyte carries positively charged Li-ions from anode to cathode and vice versa through the separator. The movement of the lithium ions creates free electrons in the anode, which creates a charge at the positive current collector. The electrical current then flows from the current collector through a device being powered to the negative current collector. The separator blocks the flow of electrons inside the battery.
Lithium is a naturally occurring metal and makes up just 0.007% of the Earth’s crust. It is found inside minerals and salts.
In 2021, Australia was the largest producer of lithium with 55,000 of mined lithium content, followed by Chile, China and Argentina. Below pie chart shows the ~ percentage of total lithium produced by different countries globally.
On a weekly chart basis, we see that the Solactive Global Lithium index has jumped up significantly in the last 10 years. It has increased almost three times in the last 10 years.
Solactive Global Lithium index tracks the performance of the largest and the most liquid listed companies in exploration or mining of lithium production of lithium batteries. The index is calculated as a total return index in USD and adjusted semi-annually.
Because of the increase in the demand for electronic devices and electronic vehicles, there has been an increase in the price of lithium. Suppliers are not able to produce the amount of lithium to fulfil the rising demand for lithium. As a result, prices of lithium are moving up worldwide.
On the demand side, the demand for lithium continues to move up. However, on the supply side, experts believe that pandemic lockdowns, global shipping, and logistics-related challenges might create pressure on the supply of lithium. As a result, it will drive lithium prices up in the coming period.
Discover the top ASX lithium stocks on the Australian stock market with our reports. Our experts provide expert analysis on the best Australian lithium. Power your portfolio with the best ASX Lithium Stocks.
Related Read: Can hydrogen beat lithium in coming time?
Confidence in the stock market regarding the demand for battery-grade lithium carbonate has significantly grown. Our team of analysts are in unanimous agreement that investor demand for exposure to the lithium market will continue to rise. Discover the top- performing lithium stocks with significant growth potential. With our expert guidance, we provide timely buy and sell recommendations to our subscribers, enabling them to enhance their potential profits from lithium stocks. Access our comprehensive LITHIUM RESEARCH today and fortify your portfolio with lithium projects driven by remarkable growth, led by small companies with exceptional management.
The lithium-ion battery has established itself as the industry standard for electric vehicles, and companies with existing lithium operations are poised to reap the benefits. Australia, the largest global producer of lithium, possesses the majority of lithium resources, primarily concentrated in Western Australia. Our in-house mining analysis specialists, with decades of experience in the sector, consistently update our subscribers on the lithium market and provide recommendations for ASX lithium stocks that we currentlyfavour. Begin your free trial now to gain instant access and delve into our latest expert lithium reports.
Fuelled by the demand from electric vehicles and battery power, lithium has emerged as one of the world's most highly valued and coveted mineral commodities. However, understanding the intricacies of the lithium industry can be challenging, given terms such as spodumene concentrate, lithium- ion batteries, lithium hydroxide, and the complexities of the mining process. But fret not! Our team of experts will adeptly guide you through all the essential aspects and practical details of lithium. Before making a purchase of a lithium stock, avail yourself of our latest recommendations, available for free now.
Kapitales Research's Australia lithium stock reports offer comprehensive insights into the leading lithium stock companies, identifying the best lithium stocks to buy within the energy sector. The reports cover a wide range of topics, including lithium mining stocks, ASX lithium stocks, and top lithium stocks, providing valuable information for investors looking at lithium battery stocks and lithium battery company stocks.
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