As demand for electric vehicles and energy storage systems continues to rise, so does the demand for lithium, the key component used in their batteries. Experts predict that lithium demand will increase by 300% from 500,000 metric tons in 2021 to 3-4 million metric tons in 2030. However, the question remains whether supply can keep up with this demand.
Avalon Advanced Materials is a company that aims to fill this gap by owning and controlling a rare lithium resource, Petalite, which is critical for high strength ceramic glass products. Avalon owns 100% of the Separation Rapids Lithium project, the world's largest undeveloped known resource of Petalite, which is not under China's control. Avalon is also in the process of establishing Ontario's first regional lithium battery materials refinery in Thunder Bay, which is designed to create a battery material supply chain for Northern Ontario and beyond.
The refinery is expected to be operational by 2025. Avalon has already secured two significant deals that underpin the fundamental need for this type of infrastructure in Ontario.
The first is an offtake agreement for Petalite concentrates from a major international glass ceramics manufacturer, while the second is a supply agreement for battery-grade lithium hydroxide with LG Energy Solutions of South Korea. These deals have the potential to be massive and underpin the fundamental reasoning for developing a refinery in the first place. If demand for lithium products increases to 3-4 million tons, which experts predict it will, Avalon's newly commissioned facility will likely produce much of the supply in a safe operational jurisdiction.
Overall, Avalon Advanced Materials is well-positioned to meet the growing demand for lithium and fill the gap in supply. Their control over the rare lithium resource, Petalite, and their plans to establish Ontario's first regional lithium battery materials refinery make them a key player in the growing lithium industry.
Sit down and take a moment to listen to this fantastic interview with Don Bubar, President and CEO of Avalon Advanced Materials Inc. as he walks investors through the 2 agreements to supply Petalite and battery-grade lithium from the refinery they are going to construct, establishing a regional lithium battery materials supply chain in the process.