By 2030, the global lithium industry investment gap will reach as high as $42 billion

By the end of 2030, the global lithium industry will need up to $42 billion in investment to meet demand for critical battery manufacturing materials, and attempts to build supply chains outside of China are much more expensive
.

Benchmark Mineral Intelligence said in a report that the industry will need $7 billion in investment
annually between now and 2028.
This will help it meet its projected demand of 2.
4 million tonnes per year until 2030, which is three times
higher than the 600,000 tonnes expected to be produced in 2022.

The forecast comes as Europe and North America seek to reduce their reliance on Chinese imports and develop their own lithium production
.
Benchmark said such a strategy could require about twice as much money
to get refined products from Asian powerhouses.

Thanks to economic clusters, a high level of expertise, and low labor and energy costs, China has always controlled the lithium supply chain
.
Analyst Cameron Perks said in the report: "If you want the ESG impact of lithium to be as small as possible, then the cost of the solution may be higher
outside China.
" ”

In the United States, the Biden administration has been pushing to accelerate production of key battery metals, providing more than $3 billion in support funds to help process elements
including lithium.
At the same time, Canada allocated up to C$3.
8 billion ($2.
9 billion) in this year's budget to build a domestic supply
chain for critical metals.

Lithium, at the heart of the clean energy transition, has surged more than 400 percent over the past year as supply struggles to keep up with the electric vehicle boom
.
Tesla CEO Elon Musk has publicly called for greater investment in lithium mining and said the auto giant may consider mining or refining
directly after prices rise to "crazy levels.
"

Benchmark said shortages of raw materials to produce batteries limit production of electric vehicles, meaning they may have to get involved in mining
if their manufacturers want to mass-produce cars.
While major producers of lithium plan to make significant investments, these investments alone are not enough, new mines are needed
.

Perks said automakers can step in, "and they do it for more than one
reason.
" Unlike investors, they are not just looking for the profit returns
generated by lithium.
They are looking to secure battery supplies
.
”