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Lithium prices surge, boosting US-focused mining and deal activity
The International Energy Agency flags lithium as high risk and highly volatile, with 85.0% of refined output concentrated in China, Chile, and Argentina.
OilPrice says lithium prices have surged after years of volatility, as demand tied to the battery and energy storage buildout drives a windfall for miners.
The outlet cites International Energy Agency data showing that 85.0% of the world’s refined lithium comes from just three countries: China at 57.0%, Chile at 15.0%, and Argentina at 13.0%, while 68.0% of raw lithium supply is also concentrated in three nations.
OilPrice adds that the IEA ranks lithium at three out of five on its geopolitical risk scale, and three out of five on ESG and climate risk exposure, noting that many mines are located in high, very high, and arid regions.
It also points to faster lithium capacity buildouts than demand, which contributed to past market volatility, and says lithium asset dealmaking is rising as companies look to capitalize on higher prices.