Global demand for lithium is accelerating faster than previously expected, according to the world's second-largest lithium producer.
San Diego-based SQM said on Thursday that lithium prices rose more than expected as demand for electric vehicles surged more than 150 per cent year-on-year in the first half of the year.
With the shift to clean energy and transport gaining momentum, SQM predicts that global lithium demand could grow by more than 40 per cent this year, translating into sales of more than 95000 tonnes, up from its forecast of more than 85000 tonnes three months ago. Tight global markets should help the average price of SQM rise further in the second half of the year.
"We now believe that total global demand could exceed 1 million tons by 2025," the company said. "