Summary of Key Points from the Conference Call Industry Overview - The focus of the conference call was on the **Battery Energy Storage Systems (BESS)** and its impact on **lithium demand**. BESS is becoming a significant demand driver for lithium, alongside electric vehicles (EVs) [2][3]. Core Insights and Arguments 1. **BESS Demand Growth**: - Projected BESS demand is expected to grow from **396 GWh in 2026** to **873 GWh by 2030**, representing a **24% CAGR** from 2025 estimates. This will account for **22-26%** of total battery demand [2]. - Corresponding lithium carbonate equivalent (LCE) demand is estimated at **360 kt in 2026** and **680 kt in 2030**, with an incremental demand of approximately **90 kt per annum** over the coming years, compared to **170 kt per annum** from EVs [2]. 2. **Market Dynamics**: - The call highlighted that global power demand is rising faster than expected, with U.S. electricity growth averaging around **3% annually**, surpassing earlier projections of **1.8%** [3]. - Major technology firms are investing in new generation capacity to meet growing power supply needs, often with clean energy mandates [3]. 3. **Supply Disruptions and Price Forecasts**: - Recent investigations into Chinese mining licenses and potential production curtailments have created uncertainty in lithium supply. Current spot prices for spodumene are around **US$940/t** [4]. - Despite supply disruptions, the anticipated increase in BESS demand could offset these issues, with a forecasted surplus of only **55 kt in 2026** in a market of **+1.8 mtpa** [4]. 4. **Lithium Price Outlook**: - UBS forecasts that spodumene prices will improve by another **20% by mid-2026**, averaging **US$1,100/t** to **US$1,350/t** over the next few years. The long-term price target remains at **US$1,200/t** [5]. 5. **Incremental Demand from BESS**: - BESS is expected to contribute **30-40%** of the incremental overall lithium demand in the coming years, indicating its growing importance in the lithium market [18][20]. Additional Important Insights - The call emphasized that while EVs remain the primary driver of lithium demand, BESS is increasingly becoming a critical component of the global lithium demand landscape [20]. - The potential for a **small surplus in 2026/27** is anticipated, with a shift to a deficit beyond 2028, highlighting the evolving nature of the lithium supply-demand balance [18][23]. This summary encapsulates the key points discussed in the conference call, focusing on the implications for the lithium market driven by the growth of BESS and the associated demand dynamics.