ILMA Compoundings October 2017 - 30

Increased Lithium Demand,
Shortages Lead to Price Spikes
for Grease Manufacturers
By Mindy Long

T

he grease industry is among the top three industries
worldwide that rely on lithium, and increased demand
for it is creating shortages in some areas and driving
costs higher worldwide.
In the grease industry, lithium is used to make lithium
soap, which is used as a thickener. The annual production
survey from National Lubricating Grease Institute (NLGI),
a trade association representing the grease industry, reported that lithium soap was used in 75 percent of lubricating
greases produced in all countries.
"Many of us in the grease industry are aware that the
supply of lithium hydroxide is tightening due to the use of
lithium in batteries. This is also causing the price of lithium
hydroxide to increase," NLGI's Technical Committee said in
a written statement to Compoundings. "The tight supply and
higher price both affect the grease industry negatively. Many
are working on alternate thickeners to replace the workhorse
lithium and lithium complex thickeners that have become
the industry standard for many applications over the past 30
to 60 years."

30

OCTOBER 2017

| COMPOUNDINGS | ILMA.ORG

The U.S. Geological Survey (USGS) Mineral Commodity Summaries 2017 study reported that although lithium
markets vary by location, lubricating greases make up about
8 percent of the global end-use market. The largest share of
lithium, 39 percent, is used by the battery market, while 30
percent is used by the ceramics and glass market.
Lithium consumption for batteries has increased significantly in recent years as rechargeable lithium batteries are
being used extensively in electronic devices and increasingly
are used in electric tools, electric vehicles and grid storage
applications, USGS said in its latest industry report.
"This challenge for lithium doesn't just affect us, it affects
manufacturers all around the world," said John Sander, vice
president of technology for Lubrication Engineers Inc.
The USGS said consumption of lithium in 2016 was
estimated at 37,800 tons, up from 33,300 tons in 2015,
and the agency projects 14 percent growth worldwide. The
agency also reported that worldwide lithium production
increased by an estimated 12 percent in 2016 in response to
increased lithium demand for battery applications.


http://www.ILMA.ORG

ILMA Compoundings October 2017

Table of Contents for the Digital Edition of ILMA Compoundings October 2017

LETTER FROM THE CEO
LETTER FROM THE PRESIDENT
INSIDE ILMA
WHAT’S COMING UP
INDUSTRY RUNDOWN
In the Know
International Insight
Market Report
BUYING OR SELLING
INCREASED LITHIUM DEMAND, SHORTAGES LEAD TO PRICE SPIKES FOR GREASE MANUFACTURERS…
MANAGING INVENTORY: WHAT’S IN YOUR TOOL CHEST?
BUSINESS HUB
COUNSEL COMPOUND
WASHINGTON LANDSCAPE
IN NETWORK
Company Callout
Member Connections
Cross Connections
PORTRAIT
ILMA Compoundings October 2017 - Cover1
ILMA Compoundings October 2017 - Cover2
ILMA Compoundings October 2017 - 1
ILMA Compoundings October 2017 - 2
ILMA Compoundings October 2017 - LETTER FROM THE CEO
ILMA Compoundings October 2017 - 4
ILMA Compoundings October 2017 - LETTER FROM THE PRESIDENT
ILMA Compoundings October 2017 - INSIDE ILMA
ILMA Compoundings October 2017 - 7
ILMA Compoundings October 2017 - 8
ILMA Compoundings October 2017 - 9
ILMA Compoundings October 2017 - WHAT’S COMING UP
ILMA Compoundings October 2017 - 11
ILMA Compoundings October 2017 - INDUSTRY RUNDOWN
ILMA Compoundings October 2017 - 13
ILMA Compoundings October 2017 - 14
ILMA Compoundings October 2017 - In the Know
ILMA Compoundings October 2017 - International Insight
ILMA Compoundings October 2017 - 17
ILMA Compoundings October 2017 - 18
ILMA Compoundings October 2017 - 19
ILMA Compoundings October 2017 - Market Report
ILMA Compoundings October 2017 - 21
ILMA Compoundings October 2017 - 22
ILMA Compoundings October 2017 - 23
ILMA Compoundings October 2017 - BUYING OR SELLING
ILMA Compoundings October 2017 - 25
ILMA Compoundings October 2017 - 26
ILMA Compoundings October 2017 - 27
ILMA Compoundings October 2017 - 28
ILMA Compoundings October 2017 - 29
ILMA Compoundings October 2017 - INCREASED LITHIUM DEMAND, SHORTAGES LEAD TO PRICE SPIKES FOR GREASE MANUFACTURERS…
ILMA Compoundings October 2017 - 31
ILMA Compoundings October 2017 - 32
ILMA Compoundings October 2017 - 33
ILMA Compoundings October 2017 - 34
ILMA Compoundings October 2017 - 35
ILMA Compoundings October 2017 - MANAGING INVENTORY: WHAT’S IN YOUR TOOL CHEST?
ILMA Compoundings October 2017 - 37
ILMA Compoundings October 2017 - 38
ILMA Compoundings October 2017 - 39
ILMA Compoundings October 2017 - 40
ILMA Compoundings October 2017 - 41
ILMA Compoundings October 2017 - BUSINESS HUB
ILMA Compoundings October 2017 - 43
ILMA Compoundings October 2017 - 44
ILMA Compoundings October 2017 - 45
ILMA Compoundings October 2017 - COUNSEL COMPOUND
ILMA Compoundings October 2017 - 47
ILMA Compoundings October 2017 - WASHINGTON LANDSCAPE
ILMA Compoundings October 2017 - 49
ILMA Compoundings October 2017 - Company Callout
ILMA Compoundings October 2017 - 51
ILMA Compoundings October 2017 - Member Connections
ILMA Compoundings October 2017 - 53
ILMA Compoundings October 2017 - Cross Connections
ILMA Compoundings October 2017 - 55
ILMA Compoundings October 2017 - 56
ILMA Compoundings October 2017 - 57
ILMA Compoundings October 2017 - 58
ILMA Compoundings October 2017 - 59
ILMA Compoundings October 2017 - PORTRAIT
ILMA Compoundings October 2017 - Cover3
ILMA Compoundings October 2017 - Cover4
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