One of Australia's biggest mining and energy investors says the lithium boom is reminiscent of previous boom-and-bust cycles in uranium, rare earths and graphite, and he warns that most companies vowing to supply the world with lithium will not convert the price boom into a sustainable business model.

Lithium Carbonate prices in China have more than quadrupled over the past year on the back of stronger demand from traditional consumers in the ceramics and glass industry, and on hopes that modern battery technology, particularly in electric vehicles, will dramatically increase demand.