On Tuesday, CNBC reported that lithium, used to make the batteries which power everything from cell phones to electric vehicles, is heading for a supply shortage as soon as 2025, according to new research by Fitch Solutions research unit BMI.

Analysts say the primary catalyst producing the shortage will be a rapidly growing Chinese demand, which even now is exceeding the government’s supplies of the metal.

In its latest report, BMI said, “We expect an average of 20.4% year-on-year annual growth for China’s lithium demand for EVs [electric vehicles] alone over 2023-2032,” adding that during the same period, the lithium supply in China is only projected to grow by 6%.

China is the third-biggest producer of lithium in the world, supplying the market with the rare earth metal for use in everything from vape pens to electric vehicles.

In 2021, the global production of lithium added up to 540,000 metric tons, which is barely one sixth of the 3 million metric tons which the World Economic Forum projects will be the global demand.

Meanwhile, forecasts by S&P Global Commodity Insights see the sales of electric vehicles hitting 13.8 million this year. However by 2030, that number is projected to skyrocket to 30 million units.

Corinne Blanchard, Deutsche Bank’s director of lithium and clean tech equity research, said in an interview with CNBC, “We do fundamentally believe in a shortage for the lithium industry. We forecast supply growth of course, but demand is set to grow at a much faster pace.”

She foresees a “modest deficit” of about 40,000 to 60,000 tons of lithium carbonate equivalent by the end of 2024. However she sees that deficit widening to 768,000 tons by the end of 2030.