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Lithium processing companies are ready to develop due to long-term contracts


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 Lithium processing companies are ready to develop due to long-term contracts


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POSTER: computer news   ||    LITHIUM PROCESSING COMPANIES ARE READY TO DEVELOP DUE TO LONG-TERM CONTRACTS

DATE:2017-08-08

According to Reuters , referring to the leading companies engaged in lithium production and processing for the production of battery cells, the demand for this element will grow so rapidly in the coming years that suppliers of raw materials will have to enter into long-term contracts with customers, which, at the expense of large advance payments, Power.  The lithium compounds used to produce lithium-ion batteries are either lithium hydroxide or lithium carbonate.  The latter is more difficult to process, and therefore manufacturers prefer to process the first.  However, in conditions of high demand for raw materials, it will also be necessary to master the more time-consuming treatment of lithium carbonate.  In addition, lithium hydroxide allows the creation of battery cells of greater capacity that last longer, so the manufacturing industry pays more attention to this connection.

Both substances are found in China, in Australia there are reserves of lithium hydroxide, but South America has reserves of lithium carbonate in the form of brine, which is more difficult to process.  Experts predict that by the year 2050 more than 80% of newly sold cars will be driven exclusively by electric traction, so the extractive industry will have to go beyond the needs of the automotive industry.  In the coming years, prices for raw materials will grow in the conditions of lithium deficit, which will also negatively affect the market of electric vehicles.  Until 2025, the extractive industry will have to invest at least $ 5 billion. Market participants believe that development funds can be sought from customers, and therefore long-term contracts with large advance payments will become the norm.


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