S&P/ASX 200 Index (ASX: XJO) lithium shares are flying out the door on Wednesday amid a dire warning from the chair of Tesla and the Tech Council of Australia.
Robyn Denholm has reportedly urged Australia to increase production of lithium-ion battery materials, telling the Clean Energy Summit a shortfall could put the brakes on action against climate change.
And the market may have heard the message loud and clear. ASX 200 lithium shares are among the most traded on the index on Wednesday.
Leading the charge is Lake Resources N.L. (ASX: LKE). More than 42 million of the company's shares have swapped hands so far today. Pilbara Minerals Ltd (ASX: PLS) and Core Lithium Ltd (ASX: CXO) are also up there, with a combined 28 million shares in the pair traded.
Let's take a closer look at the battery and technology insider's warning of a lithium supply shortage.
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ASX 200 lithium shares prove popular amid supply concerns
Denholm has reportedly put out a warning, saying the uptake of Tesla vehicles and batteries could soon outstrip the pace at which the company can source battery materials, the Australian Financial Review reports.
Of course, that could be good news for ASX 200 lithium shares – more demand for the mineral generally means greater profits for producers. However, it might be a major weight on the speed at which the world can face climate change.
"I can't think of a technology that is more important than lithium-ion batteries right now," Denholm said, courtesy of the AFR. "The world cannot build battery cells fast enough. It may be the rate-limiting actor for tackling climate change.
"To meet the challenge of climate change, this entire industry needs to scale at sprinting pace."
That might mean more lithium mines, particularly for Australia. The nation is home to a large portion of the globe's lithium mineral resources.
ASX 200 lithium giant Pilbara Minerals, mines one of the world's largest hard rock lithium ore bodies in Western Australia. Meanwhile, Core Lithium is developing the Finniss Lithium Project in the Northern Territory.
But there's likely more that could be done.
Denholm has reportedly called on state and federal governments to grant more lithium projects the tick of approval and noted opportunities for partnerships between public and private capital.
