Extract A
Figure 1: Indices of global producer prices for lithium carbonate and general consumer prices, Jan 2016–Jan 2024 (Jan 2016 = 100)
Figure 2: Global demand for battery-grade lithium carbonate (thousands of metric tons), 2016–2032
| Year | China | European Union & Americas | Rest of world | Total |
|---|---|---|---|---|
| 2016 | 120.0 | 60.0 | 40.0 | 220.0 |
| 2020 | 190.0 | 95.0 | 65.0 | 350.0 |
| 2032 (forecast) | 450.0 | 250.0 | 180.0 | 880.0 |
Explain how the data in Extract A (Figures 1 and 2) show that expansion in the global lithium carbonate market is leading to prices of battery-grade lithium carbonate rising in real terms.
