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Lithium Ion - Limited Availability and Heightened Demand
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The world has seen dramatic changes in the past several decades when it comes to technology, and one thing has come to light: green technology needs lithium ion. Lithium is essential for products that need rechargeable batteries. Everything from cell phones to laptops to electric vehicles use it. Currently, the location of many of the world’s natural lithium resources are located in Bolivia, Chile, Argentina, the U.S., China, and Australia. While many products that use lithium require only a small amount, it shows up in many products, making it a hot commodity.

 

Globally, mining companies and lithium producers are rushing to get enough to supply to companies like battery and electric vehicle manufacturers. The biggest need looks to be with the new, increasing demand for electric vehicles (EV). Leading the way is Elon Musk, co-founder of Tesla Motors. It’s predicted his company will produce up to 500,000 electric vehicles by the year 2020. That alone will create a significant need for lithium ion, and since electric vehicles seem to be the wave of the future, that demand will likely rise. The demand from Tesla and other EV manufacturers will also create a supply shortage for other companies that need the in-demand lithium.

 

Currently, the forecast for lithium battery demand shows a growing increase from more than a few research firms. When combined, the data shows a significant increase in compound annual growth rates (CAGR) for these batteries by anywhere from 22 percent to 41 percent through the year 2020. As more and more drivers embrace going green, those numbers could significantly rise to a much larger number over the coming years.

 

With the rise in demand, companies will need to secure lithium from reliable sources. Starting this year, lead times look to be longer than ever, therefore, securing at least two different battery manufacturers that are approved for battery pack orders should be established. That way, should one manufacturer have difficulty producing cells in a timely manner, companies can go to their second source to reduce or eliminate downtime. ProTechnologies, Inc (PTI) has relationships with several lithium ion battery manufacturers, thus we are able to offer our customers options to help mitigate supply shortages.

 

ProTechnologies, Inc. serves a wide range of industries, from aerospace to medical to defense and everything in between. We offer battery pack solutions and are a trusted manufacturer for custom battery packs. At PTI, we understand specific requirements and translate that into the right solution for any battery need.

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