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EVs Have Lithium Booming — And This Time, There Is No Bust in Sight

Demand is expected to outstrip metal production for at least the next five years with few new mining projects on the horizon.

Lithium ore at a lithium mine site near Widgiemooltha, Australia.
Photographer: Carla Gottgens/Bloomberg

Lithium is hot—again—though this time the rally looks to have more staying power. 

The market has exploded, with a benchmark index more than doubling in 2021 and key prices in China hitting records. Driving the frenzy is the silvery metal’s allure as a commodity of the future: It’s one of the key components for the rechargeable batteries used to power electric vehicles.