Two main themes are defining energy & transportation in this century:

1. Decline of the traditional energy production & distribution company caused by mass uptake of renewables - linked to large-scale lithium-ion battery storage for smooth supply.
2. Mass uptake of electric vehicle (EVs), powered by lithium-ion batteries - approaching parity with fossil fuel engine costs. $190/kwh production costs have now been claimed, an unprecedented drop from $1,000/kwh in 2010. This is now reaching a tipping point where affordable (350km, are becoming widely available.

• The Tesla Model S, with its 70kWh lithium-ion battery, uses 63kg of LCE (12kg of Li) - 14% percent by weight, or 10,000 times that of a cell phone
• For every 1% of electric vehicle penetration of the global passenger car market, add 50-70,000t of LCE demand, or around 30% of the total current lithium market
• Current demand forecasts for lithium carbonate equivalent (LCE) range from 550 to 600ktpa in 2025, up from 200ktpa in 2016, mostly driven by increase in lithium-ion battery uptakes for storage and EVs
• Total, an oil giant, predicts 30% penetration of car market by EVs by 2030, for 20 million sales
• This would require 1-1,200,000t LCE, or 6x current global production
• This does not take into account lithium-ion batteries for:
• home or grid stationary storage, and
• E-Bikes, buses, and other forms of transportation

All of which are seeing rapidly increasing rates of growth

• Surge in uptake of lithium-ion batteries in EVs, home/grid storage has caused strong lithium price gains in the past year
• Morningstar predict 100kt LCE shortfall in supply by 2025
• Supply/demand tightness underpins strong price support forecasts