Market Analysis

　　Lithium: lightest alkali metal, with specific gravity 0.534. It is soft, white, lustrous, and can be easily cut into pieces with a small knife. Unlike other metals, for many years, lithium has seldom been used to making things. Until World War Ⅰ,it was used as the substitute of Sn in industrial production in Germany. From then on, it began to be widely used in many areas.

　　Modern optical materials should not only be passed through by visible lights but also should be passed through by ultraviolet rays and X-rays. At the same time, they should have good thermal stability, high resistivity as well as low dielectric loss. And lithium-containing glass is one of such modern optical materials, so it is used for making television screen.

　　An ordinary telescope is hardly used in astronomical observation because its lens is unable to be passed through by the radiations from those far-away stars. However, by using the astronomical telescope whose lens is made from lithium fluoride crystal, the astronomer can insight into the mystery of the galaxy.

　　 Lithium is an important raw material for making high-energy battery. Lithium batteries have many advantages which enable them to meet the changing requirements of automobiles and electronic equipment, such as portable computers.

　　 The electrolyte of alkaline storage batteries is sodium hydroxide. By adding just several grams of lithium hydroxide into the electrolyte, the service life of alkaline storage batteries can be extended 2 times. At the same time, the range of its application temperature can be greatly expanded.

　　 Some lithium compounds such as lithium stearate，lithium palmitate and so on are ideal greases Lithium-base greases are favored for their retention of lubricating properties over a wide temperature range; good resistance to water, oxidation, and hardening; and formation of a stable grease on cooling after melting.

　　 Lithium is also an ideal rocket fuel. The heat value of lithium metal fuel is 10270 kcal/kg, which is 4.5 times higher than that of kerosene.

　　Lithium plays a unique role in atomic energy industry. When lithium deuteride, the compound of isotopic lithium-6 and deuterium, is bombarded with neutrons, strong thermonuclear reactions will happen. So lithiumtritide that is cheaper than uranium has become the ideal nuclear fuel of nuclear reactors. Moreover lithium reactors can be easily controlled without producing any radioactive fission product.

　　With the application field of it being constantly widened, lithium is in a growing demand in the international market. According to the estimation made by the Lithium Industry Association of U.S.A., in 21st century, the demand of the aluminum-lithium alloy will reach 600,000 tons, and the demand of lithium metal will reach 15,000 tons. The United States, Russia, Canada, Germany, Australia and Chile are the leading producers of lithium in the world. However, the total output is only about 2,500 tons per year, which is inadequate for supplying the expanding lithium market.

　　Since China’s opening up to the outside world, the domestic demand for lithium metal had increased with an annual growth rate of 20% ~ 25% from 1985 to 1996. And the annual growth rate of the demand for lithium-ion batteries was over 20%. In 2006, following the significant expansion of domestic markets of aluminum-lithium alloy, lithium bromide, ceramics, glass and electronic products, lithium prices increased dramatically with a growth rate of over 200%. In conclution, the lithium prices and market prospect are very favorable.