With the push to sustainable energy resulting in more car manufacturers focusing on electric vehicles, some think that mining for lithium could soon become more important than drilling for oil.
According to the United States Geological Survey, the global consumption of the element most notably known for being a main component in EV batteries rose drastically last year, jumping 41% from 2021 to 2022.
Part of the increased usage of the element comes as EVs become more common on the road, with consumers having more choices now than ever. Current projections say that the cars could be in the majority by the end of the decade.
“We expect the automobile industry to undergo a major transformation between 2020 and 2030, driven by the increasing adoption of vehicle electrification and autonomous driving,” Goldman Sachs equity research strategist Kota Yuzawa shared in a recent report.
The U.S. Bureau of Labor Statistics reports that from 2018 to 2021, the number of electric vehicles on the road nearly doubled, surpassing 2 million.
Part of the EV boom, and, in turn, the increased usage of lithium, comes from the success of companies like Tesla and a push for a better fuel alternative from environmentalists.
Last year, Tesla CEO Elon Musk shared that he believes lithium-based batteries are “the new oil.” But, like oil, the substance needs to be mined, and it may not be as abundant as some think.
As for those concerned with the environment, the Biden administration continues to push for alternatively powered vehicles as it works to cut the country’s carbon emissions. Part of Biden’s goal includes having “50% of all new vehicle sales be electric by 2030.”
Most recently, the White House shared that it is making “public and private commitments to support America’s historic transition to electric vehicles (EV) under the EV Acceleration Challenge.”
But to continue these pushes, lithium will be needed.
How is lithium mined?
Lithium is often found as a standalone metal in nature. Typically, it is located underground in hard-rock and brine deposits. To access the metal in hard-rock, traditional mining techniques are used, while brine lithium is usually extracted through a process that can take months.
Craig Johnson, a professor at the University of Guelph and the lead of a research team looking at lithium mining in five countries, spoke with the CBC about the element and what he thinks about its increased use.
While it may be seen as a better alternative to oil, Johnson shared that not everything about it is great or known.
“There are costs associated with extracting lithium,” he said.
With the effects of hard-rock mining and brine extraction both having their own negative impacts on nature, Johnson shared that some are pushing for better research to understand the effects they will have on a long-term basis.
Currently, Johnson said that the leading producer of lithium is Australia, which uses mostly hard-rock mines to extract the element. Chile is second in lithium production, and the U.S. Geological Survey reports that the nation has the largest reserves in the world, with 9.3 million tons.
While lithium is the prominent component in EV batteries, it is also used in numerous other items, like smartphones, pacemakers, watches, and more, meaning that its usage will only go up as time goes on.
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