Lithium Americas Corp (LAAC)

[overlordpeter]

shortage by as soon as 2015.

Lithium hydroxide is used as an active cathode in the batteries, and we could see a shortage by as soon as 2015.

Price of lithium hydroxide on the rise
The price of battery grade lithium hydroxide in 2010 and 2011 was US$7,500-$8,000/t, respectively. In 2012, the price increased to US $8,500/t. Prices are expected to stabilize in 2013 at approximately US $9,000/t, increasing to US $10,475/t by 2020.

Western Lithium is finalising the design of the lithium hydroxide circuit which is needed for production, and will be testing the circuit in pilot tests during 2015. According to Western Lithium's website, the project is due to come into production in 2018 to 2019.

""The progress being made in circuit design of lithium hydroxide is also a key development. We view that lithium hydroxide could, in the coming years, represent a larger portion of the lithium market, particularly with the predicted uptake of electric vehicles,