The global rush for lithium is not without challenges & opportunities and IOTW
Transitioning to a lower carbon future is complex and one that requires multi-stakeholder approach
In recent years, the world has witnessed an unprecedented surge in the demand for lithium, a metal that has become as valuable as gold in the eyes of industries and investors. Lithium, often referred to as "white gold," is a critical component in the production of batteries that power everything from smartphones to electric vehicles (EVs). As the world shifts toward renewable energy and sustainable technologies, the importance of lithium has skyrocketed, leading to a modern-day gold rush with far-reaching implications.
Lithium is widely extracted from two primary naturally available sources: spodumene, a lithium-rich mineral found in hard rock, and brine deposits. Spodumene is mined predominantly in Australia, which is the world's largest producer of lithium from hard rock. This mineral is also extracted in other regions with significant lithium reserves, such as Brazil, Canada, and parts of the United States. The extraction process involves mining the spodumene ore, curshing it, heating, and chemical treatment to produce lithium hydroxide. Brines on the other hand, found in salars (or salt lakes), are evaporated and the lithium is purified to make lithium carbonate. Lithium is also present in geothermal mines, a process that is being developed in the United States, Germany, and parts of New Zealand, to produce either lithium carbonate or lithium hydroxide. Every process has its advantages and disadvantages, which I will explore in another write-up.
Lithium hydroxide is the preferred compound due to its inherent material properties, although lithium carbonate still represents the majority of the market.
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The supply and demand imbalance
The demand for lithium is outpacing supply, leading to concerns about a potential shortage in the coming years. Major lithium-producing countries, including Australia, Chile, and China, are ramping up production to meet the growing demand, but challenges remain.
Lithium extraction (regardless of the source or the extraction process used) is a complex and resource-intensive process and creates environmental and logistical challenges, from water usage and pollution concerns to the need for large-scale infrastructure.
Source: IEA
The supply chain for lithium is also vulnerable to geopolitical tensions and market fluctuations. As lithium becomes more valuable, countries with significant reserves are increasingly aware of the strategic importance of this resource, which could lead to tighter controls on exports and increased competition for access to lithium deposits.
Source: IEA
Extraction of lithium has notable environmental impacts
Recently Rio Tinto’s proposed lithium mine in Serbia was in the news due to concerned citizens asking for clarifications on whether the water sources in the region will be impacted (and hence the yield for farmers). Several thousand have demanded that the project be halted. This is not an exception; several regions where rich lithium deposits exist, have reported various types of environmental challenges that have yet to be addressed.
Chile's Atacama Desert: In Chile's Atacama Desert, lithium is extracted from brine deposits, a process that consumes vast amounts of water. According to several market reports, it takes around 500,000 gallons of water to produce one ton of lithium. This has led to the depletion of freshwater resources in the region, affecting local agriculture and indigenous communities. Over-extraction has reduced the water table, causing environmental stress in one of the driest regions on Earth. According to a study conducted by the University of Chile, Chile's Atacama salt flat is sinking at a rate of 1 to 2 centimeters (0.4 to 0.8 inches) per year due to lithium brine extraction.
Greenbushes Mine, Australia: The Greenbushes lithium mine in Western Australia, one of the largest spodumene mines globally, has raised concerns about soil and water contamination. According to Mining activities can lead to the release of toxic substances like heavy metals into the environment, potentially contaminating nearby soil and water sources. The tailings from lithium mining can also contain hazardous materials, posing long-term environmental risks.
Salar de Uyuni, Bolivia: The Salar de Uyuni, the world's largest salt flat, is a key site for lithium extraction from brine. This region is home to unique ecosystems and species, including several types of flamingos. The construction of infrastructure and the large-scale evaporation ponds used to extract lithium threaten these ecosystems by altering habitats and reducing water availability. The loss of natural habitats and the disruption of water cycles can lead to significant biodiversity loss.
Tibetan Plateau, China: In Tibet, lithium extraction from hard rock deposits has led to severe water pollution incidents. For example, according to Guardian, a 2016 chemical leak from a lithium mine caused a mass die-off of fish in the Liqi River, which is a critical water source for local communities. The release of toxic chemicals used in lithium processing into nearby water bodies has raised concerns about the long-term effects on human health and the environment.
Salta and Catamarca, Argentina: According to a report from BBC News, in Argentina's lithium-rich regions, such as the Salta and Catamarca provinces, lithium extraction from brine has led to cultural and social disruption among indigenous communities. These communities rely on traditional practices and the local environment for their livelihoods. The depletion of water resources and the industrialization of their lands have caused conflicts and resistance from indigenous groups, who argue that their rights and way of life are being threatened by the lithium boom.
If extracting lithium has a big environmental impact, should we stop?
Like any process and technology, this is not without its challenges and in fact presents new opportunities to pursue and develop solutions that are less disruptive to the environment. Most of the lithium that is extracted today is transported around the world for use; this has a significant, yet-to-be-fully-quantified carbon impact.
Source: Natural Resources, Canada
In the transition to a lower carbon future, context is important. For example, is lithium mining more dangerous than fracking? Can we give up our reliance on all batteries that consume lithium? Various approaches are being implemented around the world to manage this global need for the material against the backdrop of its environmental impact.
Changing social perception of lithium: Several leaders in the EU, according to Reuters, are now focused on educating the public on the environmental impacts of lithium extraction, given its relative signficance to the regions geopolitics and economic development (jobs).
Direct lithium extraction: Where there is a challenge, opportunities arise. Lithium miners in the United States situated in the “lithium valley” are focused on developing a lithium extraction process with minimal carbon footprint leveraging geothermal deposits. This process is also known as direct lithium extraction (DLE).
Lithium from wastewater: Recent work from the University of Pittsburgh suggests that lithium could be extracted from wastewater. According to this research, researchers have demonstrated the ability to extract lithium from water with more than 90% efficiency. This work further suggests that at this level of efficiency, lithium from the wastewater of Marcellus shale gas wells could supply up to 40% of the U.S. demand.
Infographic of the week - lithium battery prices keep falling
Falling lithium-ion battery pack prices could mean that batteries become a staple in buildings and for back-up power, especially in high priced electricity markets.
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