While the question of the supply of lithium for EV batteries is a valid one to raise, the abundant supply of lithium means it is unlikely that the world will ever run out of this vital resource.
U.S. geological survey the world is getting better at mining battery metals including lithium. As of 2021, it was estimated that the world had 88 million tonnes of lithium resources.
Lithium itself, after all, is finite, and will eventually run out. It's expected that we could experience lithium shortages in 2025 unless mining and production increase.
Production is expected to increase in 2022, with Western Australian mines ramping up to meet demand and the Finniss Lithium Project opening in the Northern Territory.
Sodium-ion batteries also swerve sharply from lithium-ion chemistries common today. These batteries have a design similar to that of lithium-ion batteries, including a liquid electrolyte, but instead of relying on lithium, they use sodium as the main chemical ingredient.
Lithium-sulfur batteries are believed to be more efficient than lithium-ion batteries, which could increase the range and storage capacity of electric vehicles. Additionally, sulfur is affordable and abundant, which could mean lower cost.
Graphene Batteries
Not only is graphene 100 times stronger than steel, but it also has a high charging capability and is highly conductive. Graphene battery technology has proven to be possible, but it is only now that practical competitors to lithium technology are coming to fruition.
Australia mines about 53 percent of the world's supply of lithium, and virtually all of it is sold to China.
Are lithium shares a good investment? While lithium share prices can be volatile due to supply-demand issues that impact the value of lithium as a commodity, the lithium sector does have good long-term growth prospects as the demand for lithium-ion batteries in electric vehicles (EVs) continues to increase.
Australia has the world's largest recoverable resources of tantalum, zircon (zirconium), rutile (titanium) and nickel. Australia is the world's No. 1 producer of lithium (49%) and rutile (titanium) (26%), and the second-largest producer of zircon (zirconium) (21%).
The bottom line
While the question of the supply of lithium for EV batteries is a valid one to raise, the abundant supply of lithium means it is unlikely that the world will ever run out of this vital resource.
Lithium mining does have an environmental impact, but it is no worse than oil drilling. This is especially true when you consider the carbon emissions produced from petroleum products during their usage, as compared to lithium-ion batteries that have little to no GHG emissions during their use.
Chile holds the world's largest lithium reserves and is the world's second-largest producer. Lithium is currently produced from hard rock or brine mines.
Running Out of Lithium
An inability to produce enough lithium would result in severe delays to the roll out and implementation of electric transport and renewable power – as such, it is fair to question whether there is enough of the prized element to meet global needs.
Because lithium is not an infinite resource. In fact, according to Kipping, once EVs dominate the car market, there's about 70 years' worth of lithium until the identified global reserves are themselves depleted. After that, we'd have to turn to pulling lithium from the sea, which is a much more expensive proposition.
The process of extracting lithium consumes significant amounts of water and energy, and lithium mining can pollute the air and water with chemicals and heavy metals. In addition, mining lithium can disrupt wildlife habitats and cause soil erosion, leading to long-term ecological damage.
Pilbara Minerals (PLS) is by far the biggest lithium mining company in Australia. Owning the world's largest hard-rock lithium operations, Pilbara produces over 377,000 metric tons of lithium every year.
The potential risks of investing in lithium
The risk of investing in lithium is that lithium-ion batteries become undesirable in the face of alternatives to lithium, such as sodium-ion batteries, or hydropower powered vehicles.
Argosy Minerals is a lithium stock in Australia. It's hard rock production is in the lithium triangle where the world's largest lithium resources are. 40% of the world's hard rock lithium is mined here at the lowest cost. It also It's production is in Nevada US and Argentina.
Australia has one of the biggest lithium reserves and is the biggest producer of lithium by weight, with most of its production coming from mines in Western Australia.
Core Lithium Limited (ASX: CXO) is building Australia's next lithium mine – the Finniss Lithium Project on the outskirts of Darwin in the Northern Territory.
Tesla has previously inked deals with Australia's own BHP, Syrah Resources, Liontown Resources and Piedmont Lithium to supply critical battery resources. At last year's electric vehicle summit in Canberra, the Australian chairwoman of Tesla, Robyn Denholm, said she's “quite excited about this topic.”
Researchers have recently discovered a way to make an efficient battery out of zinc — an inexpensive, commonly found metal — instead of the rare metals used in lithium batteries. Most rechargeable batteries today are lithium-ion batteries, which include other metals like cobalt and nickel, Tech Xplore reports.
Researchers at Vienna University of Technology have developed an oxygen-ion battery based on ceramic materials that has a longer lifespan than lithium-ion batteries. The new battery can be regenerated and does not require rare elements, making it an ideal solution for large energy storage systems.
While the world does have enough lithium to power the electric vehicle revolution, it's less a question of quantity, and more a question of accessibility. Earth has approximately 88 million tonnes of lithium, but only one-quarter is economically viable to mine as reserves.