Lithium-ion batteries are charged and discharged through the flow of lithium ions between the anode (positively charged) and the cathode (negatively charged). Cathodes contain nickel which helps to deliver energy density, and cobalt which ensures they don’t easily overheat or catch fire and helps to extend battery life.
A typical electric car needs 9 kg of lithium, 13kg of cobalt, 40 kg of nickel, 25 kg of manganese and 66 kg of graphite. Although lithium-ion batteries are used in a wide range of consumer electronics and in stand-alone batteries, the transportation segment, including EVs is the largest user of lithium and demand is set to grow significantly.
Lithium plays a crucial role in battery batteries, and as such, demand for the metal has shown strong growth since the development of the electric vehicle market. The global market for lithium was estimated to be US$ 7 billion in 2022, and could reach more than US$ 22 billion by 2030. Cobalt is also used in the magnets of wind turbines. Demand is forecast to outpace supply in 2028 and onwards.
Alkemy Capital Investments plc (LON:ALK, FRA: JV2) is focussed on developing projects in the energy transition metals sector. Alkemy’s wholly-owned subsidiary Tees Valley Lithium (TVL) is developing a state of the art lithium hydroxide plant at Teesside, UK. TVL is Europe’s largest independent and sustainable lithium hydroxide producer.