EV’s Driving Need for Lithium
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We could reasonably anticipate that lithium reserves and resources might develop as market needs progress. But as with all finite resources, we could anticipate reaching a peak in production at some point. I’ve written about the peak oil debate fairly extensively, so it is only fair and rational to apply a similar analytical lens to lithium production. The lithium production market is still a fairly new market, so even though USGS and others have made some reserve and resource estimates already, it is premature to make any conclusions about future resource discovery and production. We’ve learned at least one lesson from the peak oil debate: higher rates do indeed spur innovation and heightened production, at least they have in the U.S. Interestingly, almost the entire development in global oil production has come from progress in U.S. oil production. That is, the rest of the world has barely managed to stay in place on the treadmill of oil production, even in the face of far higher oil rates.
Even though the fracking revolution has not yet extended beyond the U.S., and might never do so, even the remarkable development in U.S. production of oil in the last five years has left most peak-oilers eating a healthy portion of crow pie. They might well win the debate before long, but for now, the cornucopians are winning. With respect to the notion of peak lithium, there is a substantial difference between this commodity and oil because there are many ready substitutes for lithium that could be used in the manufacture of batteries. The USGS report cited above states: “Substitution for lithium compounds is possible in batteries, ceramics, greases, and manufactured glass. Examples are calcium and aluminum soaps as substitutes for stearates in greases; calcium, magnesium, mercury, and zinc as anode material in primary batteries; and sodic and potassic fluxes in ceramics and glass manufacture.” These substitutes might all face similar resource constraints as lithium, but there is a fundamental difference between changing battery chemistries and finding substitutes for oil more generally. (1) These other industries are said to have been focusing on unlocking value in a world shifting towards green energy solutions that run off lithium-based batteries! Hear something straight from the horse’s mouth by stepping on this article!
The progressing use of lithium batteries to store energy has exposed one of the dirtier sides of transitioning to a low carbon economy. To create these batteries, there is a need for a range of rare earth metals that require heavy mining and manufacturing that emit significant emissions. Furthermore, major components such as lithium, nickel, and cobalt exist in a finite amount that is unlikely to meet the current and future needs for battery units.
Studies looking into the sustainability of electric vehicles point out that with the high need for new electric vehicles, the auto industry might benefit from economies of scale and as more cars are built, the more efficient and less polluting the manufacturing process. Additionally, as more batteries are created for these electric vehicles, it might create a market for the recycling of these storage devices, thereby reducing the need for new mining endeavors. (2) Take a look at what other industries have to say about the future. A multitude of experience and understanding might well be noted with this page!
By the year 2025, lithium desires are anticipated to progress to approximately 1.3 million metric tons of LCE (lithium carbonate equivalent) — over five times today’s levels. For example, the Volkswagen Group aims to launch more than 70 electric car models in the next 10 years, closely followed by a host of other automakers. In order to heighten the lithium supply to meet the development in electric vehicle desires, other sectors are working on breakthrough direct-extraction technologies that they hope might provide developed production capabilities on both existing brine reserves and previously non-viable brine sources. Would you like to know more? Learn more by reading on! Check the disclaimer on my profile and landing page.
Source1: https://www.greentechmedia.com/articles/read/is-there-enough-lithium-to-maintain-the-growth-of-the-lithium-ion-battery-m
Source2: https://www.forbes.com/sites/jamesellsmoor/2019/06/10/electric-vehicles-are-driving-demand-for-lithium-with-environmental-consequences/?sh=6a04405562e2
