Tomorrow Investor

New Head of Core Lithium: Mineral to Play Vital Role in Australian Economy

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If there is anyone who is bullish about the global demand for lithium and how it could impact the Australian economy, it would be Gareth Manderson, the new chief executive officer at Australian mining firm Core Lithium.

In a recent interview, Manderson reiterated the importance of lithium, as well as nickel and cobalt, for the increasing demand for rechargeable batteries, not only for the booming electric vehicle sector, but for other industries as well.

Manderson explained that, while numerous battery chemistries are depending on the brand or purposes, virtually all of them involve the use of lithium. 

Likewise, the growth of all lithium-mining, processing, and producing enterprises are centered on the EV market, as other sectors within have already achieved some stability in terms of supply and demand.

A place for Australia

Manderson added that as the global demand for lithium continues to grow, so will the market. He admits to being bullish regarding the current demand profile and opines that there is certainly a place for the Australian mining sector in the growing industry. 

Indeed, as the country is one of the largest producers in the world, Manderson expects the benefits the lithium boom will have on the national economy will be bountiful.

To date, lithium exported from Australia earned over $1 billion as of the end of June 2022.

At the moment, analysts believe lithium prices are bound to stay high for the remainder of 2022 and possibly much of 2023 if the current level of demand continues to grow.

Potential growth on the horizon

Manderson may have only taken the helm of Core Lithium last month, but its share price has nearly doubled over the past several weeks.

At the same time, experts predict that the company is set to become Australia’s fourth largest index-listed lithium mining company. This is despite the fact that a number of its operations remain under construction. Core Lithium will be right behind current front runners Pilbara Minerals, Alkem, and Liontown Resources, a firm that recently inked an agreement with US car manufacturer Ford.

Cautious optimism appears to be the overall mood for Core Lithium, though, particularly at a 500-square kilometer site just 88 kilometers from Darwin, which is said to be the most likely source of lithium in Australia’s Northern Territory. Indeed, as the company’s exploration manager Andy Bennett puts it, they have yet to see what pegmatite geometries may be detected within the site.

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