Lithium

Challenges

With power density that’s sufficiently high and a technology that’s now mature, lithium ion batteries are driving the rapid evolution of electric vehicles and mass power storage. Smaller, rechargeable lithium batteries have also earned their place at the table. They’re now the most common type used to power computers, cell phones, and other portable electronic devices.

Demand for lithium chemicals is growing rapidly. Unfortunately, the cost of these chemicals is rising, too. Lithium chemicals constitute less than 10% of the cost of lithium ion batteries, but that price is relatively inelastic to demand. Increased use has meant escalation of both product price and demand. In China, pricing for lithium carbonate recently exceeded $15,000/t and there is a shortage of spodumene, the main hard-rock source of lithium. New suppliers and support for the existing industry are both needed.

Lithium chemicals used in batteries must be extremely pure to prevent failure or fires. Large quantities of hazardous chemicals are needed to convert hard rock or lithium brines to usable chemical. These must be carefully handled and managed. Both the plant and the supply-and-product chain must be carefully designed to ensure the health and safety of the community, and the protection of the environment.