Issue link: http://resourceworld.uberflip.com/i/912601
D E C E M B E R / J A N U A R Y 2 0 1 8 www.resourceworld.com 35 responded quickly to demand and higher prices, using the expensive option of trucking manganese ore to harbours from their operations in the Northern Cape to deal with the logistical bottleneck of lim- ited rail capacity. Macquarie suggested the higher Chinese imports were because of the closure of domestic low-grade mines. LITHIUM Demand for the lithium is forecast to triple by 2025, and according to the consultancy CRU. Lithium is key to the production of lithium-ion batteries used in electric cars (EVs) and prices have responded to the growing demand for these vehicles. China is the leading player in the EV space, in part due to environmental pressure. In 2016, 507,000 EVs and plug-in hybrid electric cars were sold in the country, a 53% increase from 2015. Recently, ana- lysts at UBS raised their forecast for global EV sales in 2021 to 3.1 million units from 2.5 million units and to 14.2 million units in 2025. CRU believes lithium supply will out- weigh demand as early as 2018 and lithium carbonate and hydroxide spot prices of over $10,000/tonne in 2017, having doubled in less than 12 months on rising expectations of a demand boom from bat- tery metals and tightness in supply, will change by 2020 with brine expansions and new hard rock production keep prices in check and $6,500-7,000/tonne the new cost level. POTASH China has been the fastest growing potash fertilizer market over the past decade, pri- marily driven by expansion of corn, fruits and vegetables cultivation. Potash Corp. recently reported that although corn acre- age in China is expected to decline due to changes in government policies, areas planted for fruits and vegetables will fur- ther rise through the end of the decade. In addition, Chinese government sup- port policies in the food sector are moving away from production based measures to quality based measures, which are expected to be positive for potash demand as it enhances taste, colour and texture of food. Potash prices have strengthened in most places since the beginning of 2017. Potash application rates in India are well below world levels. Potash Corp. expects that improvements in potash affordability remain a catalyst for continued recovery in application rates and overall potash demand in India. Brazil's potash consumption has grown by nearly 50% since 2010, driven by expanding crop acreage and increased fer- tilizer application rates and they anticipate that Brazil will continue to increase its potash usage at rates above the global average to further bolster agricultural production. SILICON METAL China is by far the world's largest producer