New lithium mine on line by 2020

BRISBANE-BASED lithium producer Sayona Mining says it is planning to open its Canadian open-cut mine in the next two years as demand for electric cars ramps up.

Sayona Mining managing director Dan O’Neill said a feasibility study into the mine near Quebec was nearing completion with the aim of extracting material by 2020. Prices for lithium for use in rechargeable batteries that power anything from mobile phones to electric cars has surged in recent years.

The lithium-ion battery market is expected to surpass $90 billion by 2025.

“Demand for lithium is being driven by the battery makers out of China,” said Mr O’Neill on the sidelines of the Noosa Mining and Exploration Conference that finished on Friday.

“The big car makers including Volvo and Volkswagen are moving into electric cars.”

Mr O’Neill said the Canadian mine would require an investment of approximately $100 million.