As the demand for lithium-ion batteries soars, so does the need for their key component, lithium hydroxide. To meet this growing demand, several lithium hydroxide production projects are in the works, promising to increase the global supply capacity. However, concerns persist about whether these efforts will be enough to bridge the gap between demand and supply.

The main concern lies in the timeline for new production facilities to come online. It takes time to develop and build new mines and processing plants, and the current pipeline of projects may not be able to keep pace with the rapidly increasing demand. Even if these projects are completed on time, there is a risk of delays or disruptions due to unforeseen challenges, such as environmental or regulatory issues.

Beyond the timeline, there are also concerns about the quality of the lithium hydroxide produced. The quality of the lithium hydroxide directly affects the performance and longevity of lithium-ion batteries. If the planned production capacity is not accompanied by robust quality control measures, there is a risk of producing lithium hydroxide that is not up to the standards required for high-performance batteries