Following on from a previous blog post on ‘EVs and the supply chain of minerals’ below is a video from the ‘FT Moral Money’ series concerning the demand for lithium. In 2023 demand for lithium was around 930,000 tonnes but is forecast to increase to 3.5m tonnes by 2030.
Future supply from Chile
Chile definitely will have to be one of the future supply countries and the Chilean government has announced clear rules of the game for future supply from Chile. The government’s strategy would encourage new lithium operations to use new forms of technology, such as direct lithium extraction by removing lithium from brine at the site of extraction and then re-inject the processed liquid back into the brine body. Although not fully proven it would make extraction more sustainable but Chile’s indigenous population are concerned about the impact it might have on their land. Water scarcity is a major issue in Chile’s Atacama Desert as it affects local farmers and communities. The two principal mining companies operating in the region are estimated to extract around 63 billion litres of water a year.
Recycling in Norway
With the growing number of electric cars there comes used batteries. Hydrovolt run the biggest recycling plant in Europe and are located in Norway as this is the most mature market for EV cars. They can recover, with today’s technology up to 95% of the critical raw materials and creates an above-ground mine which has much less environmental impact on the economy.
The global economy is moving towards electrification and decarbonisation with lithium being a significant part in its use of battery storage. Lithium therefore could be seen as the oil of the 21st and 22nd century and one of the cornerstones of the global industrial and technological landscape for the next 100 years.
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