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Lithium is commonly used in EV batteries

Lithium: Powering the Electric Vehicle Revolution

When it comes to sustainability, everyone knows how important electric vehicles (EVs) are.

Meanwhile, everyone understands how important smartphones and PCs are for economic growth.

But what about the resource powering these technologies?

Let’s take a look at lithium: the world’s lightest metal.

A lithium-ion battery

In Electric Vehicle Batteries

Today, a global lithium shortage rages. As a result, companies and national governments fight to secure mining projects.

A major reason: the mineral powers clean transportation tech.

Companies like Tesla, VW and Renault-Nissan work tirelessly to make EVs a part of middle-class American life. Their greatest challenge: creating lithium-ion (Li-ion) batteries that hold long charges.

lithium-cameras-film-consumer electronics

Li-ion batteries power most consumer electronics, like film cameras

In Consumer Electronics

Laptops and Smartphones have been using Li-ion batteries for years, replacing the lead-acid alternative.

This development accelerated demand in the 90s. Consequently, it was relied on to power the growing information technology sector.

For this reason, the technology behind Li-ion batteries improves every year. Meanwhile, so do expectations. Better smartphones mean a more powerful battery is needed.

Behold the great clean energy paradox.

The mineral is commonly used in pharmaceutical applications

In Other Applications

It’s also used in ceramics, glass, medicine and various other applications.

Used to treat mental illness for years, it’s original purpose was treating bipolar disorder.

However, the resource is also used around the house. It’s found in windows, oven elements and pottery.

Without it, moulds don’t hold.

An evaporation pond from Ultra Lithium’s Borita Brine site in Argentina

Eco-Friendly Mining

Especially in the case of brine, mining leaves a tiny environmental footprint.

Ultra Lithium has various sites in South America where the resource is extracted from ‘salars’. These are large evaporation pools.

To start, geological surveys are conducted and several test holes are drilled. Eventually, the mineral reaches the surface, ready to be refined and placed into an eco-friendly battery.

Mining can’t get much cleaner.

Ultra Lithium Inc. A team of clean energy experts with a finger on the pulse of mining news, ULI is a lithium exploration company with holdings in Argentina, Canada and the US (TSX-V:ULI, OTCQB: ULTXF and Frankfurt: QFB).

Lithium Demand Rises

There are many reasons lithium demand exceeds supply.

Electric Vehicles (EVs) increase in popularity. Mobile apps command more attention. Personal computers are a fixture of both home and office life.

Elon Musk and Tesla understand the value of lithium

Lithium powers these technologies.

As a result, the world’s energy requirements have skyrocketed. So has lithium demand.

Most mobile phones can last 24 hours

This is possible even with heavy application use.

However, we ask more of batteries than ever before. More people are working from home and smartphones are no longer a choice.

Increased lithium demand means Smartphone batteries last longer than ever

Smartphones’ Impact Tied to Lithium

Consider the tech sector’s widespread innovation. Most of that brainpower is directed at phones. The result: lower prices on what used to be considered ‘premium’ technologies.

The Bureau of Economic Analysis (BEA) found that annual phone prices have fallen 15.2% since 2003.

Tech Advances are because of Smartphones

Engineers communicate faster and more efficiently than ever.

Consequently, lithium-ion batteries are becoming more efficient.

As lithium demand soars, so has battery capacity

As Batteries Shrink, Productivity Soars

Lithium-ion batteries are 1.4 times more expensive than lead-acid batteries. They’ve captivated a world addicted to faster processing speeds at lower prices. The only issue: mining lithium is a challenge.

But lithium demand won’t wait.

LinkedIn, Facebook, SalesForce, Bumble and thousands of other applications rely on lithium. After all, a better way to power smartphones doesn’t exist.

How Large is Global Lithium Demand?

The global market for power banks could reach $25 billion by 2022.

This market is likely to grow as the transportation sector electrifies. Securing lithium supply is becoming more important and challenging for manufacturers.

Volkswagen and Tesla Enter the EV Market

Volkswagen’s electric vehicles are expected to rival Tesla’s in popularity

They’ve both rapidly increased production quotas.

Not surprisingly, they aren’t alone.

Lithium Mining Tech hasn’t Matured

The technology used to explore and mine lithium hasn’t matured. Not like oil industry tech.

The science behind oil barrel production has enjoyed years of trial and error.

Meanwhile, society’s thirst for lithium has been sudden, exceeding the technology used to extract it.

South America’s Lithium Triangle the key to meeting global lithium demand

Lithium Demand Leads to the Lithium Triangle

54% of the world’s lithium is found in South America’s “Lithium Triangle.”

This includes Argentina, Chile and Bolivia.

Australia is the world’s leading lithium-producing nation. It holds over 2.7 million Megatonnes (MT) of lithium reserves.

China gets most of its lithium from Australia

The communist state is the world’s largest producer of lithium-ion batteries and EVs. It is also investing heavily in exploration operations elsewhere.

Recently, a $265-million investment in a Canadian exploration project was finalized in 2017.

The Challenges in Finding and Mining Lithium

South America and Australia mine lithium in different ways. These are the world’s top producers.

The path to satisfying global lithium demand goes through them.

Lepidolite mica: will lithium demand ever be satisfied?

In Argentina, Chile and Bolivia, lithium is found in brine.

Here, lithium and cobalt naturally dissolve in natural salt pans called salars.

This process reduces the investment needed to extract lithium.

Evaporating Lithium Takes a While

These natural pools are filled with groundwater.

For now, miners wait for pools to evaporate. Potassium can be found in the early months.

Lithium is the end product, taking 5-6 months to dissolve.

A technological breakthrough would speed things up.

A large lithium pool in Argentina

Australia Uses Hard Rock Mining

Meanwhile, a more expensive method exists.

However, it leaves a larger environmental footprint. Drilling is more expensive than in brine mining, as boring through rock isn’t cheap.

What’s helped Australia is its ability to sell.

Australia and South America Fuel Chinese EVs

This has allowed Australia to spend big on exploration and mining operations.

Meanwhile, major brine producers like Orocobre are reporting less than expected results.

As a result, hard rock mining has attracted buyers with deep pockets.

Consequently, speed is key.

lithium demand-australia-hard rock mining

Hard rock mining in Australia a hefty environmental cost

Lithium Needs Time

The technology behind mining needs to keep pace with lithium demand.

Brine mining is a cheaper, eco-friendlier alternative to hard rock mining.

An Evaporation Pond Tech Advance Would Change Everything

Rich countries like Australia can drill into rock to extract lithium. Developing countries can’t.

EV adoption causes lithium demand to rise

As with any other breakthrough, ‘when’ is more important than ‘if.’

Ultra Lithium Inc. A team of lithium experts with a finger on the pulse of clean energy news, Ultra Lithium is a lithium exploration company with holdings in Argentina, Canada and the US (TSX-V:ULI, OTCQB: ULTXF and Frankfurt: QFB).

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