Lithium is Vital for a Sustainable Energy Future

Talal Abu-Ghazaleh

Lithium plays a vital role in the batteries of the future that are essential for transitioning to a low carbon economy. With the increasing demand for energy, the need for lithium is also growing rapidly. Experts predict that by 2040 this demand could surge by more than 40 times compared to 2020 levels, with there being a global shortage in the supply of refined lithium to meet this demand. 

One of the challenges lies in Chinas dominant position in the lithium refining industry. China has made investments in this sector over several years currently accounting for around 60% of global lithium chemical supply and producing about three quarters of all lithium ion batteries worldwide as reported by the International Energy Agency (IEA). Moreover, China controls a significant portion of global lithium reserves through direct ownership or through strategic partnerships with other nations. This concentration poses risks to other nations since it creates dependence on a single country for such a critical resource.

Chinas dominance in the market gives them a competitive edge with this sector expected to experience rapid growth in the future. However, there are concerns about the concentration of refining capacity in China from western nations as it raises questions about supply security and resilience.

Considering these factors there is a need for increased global investment in lithium refining. Regions, like South America, Australia and Africa that possess lithium resources should focus on developing their own refining capabilities and infrastructure. Attracting investment and technology transfer would also be beneficial to diversify the supply chain and create a more balanced and competitive lithium market.

The importance of the lithium battle cannot be underestimated; China has already taken a lead. The rest of the world must make efforts to catch up by investing resources into this crucial technology that plays a vital role in our green future. As history has taught us relying on one country for a resource can jeopardize availability and sustainability. Influential voices such as those of Elon Musk call for more capacity to be built outside of China to mitigate lithium supply chain risks.

On another note, we must acknowledge that the lithium war extends beyond economics; it also has implications and considerations of environmental justice. The extraction and processing of lithium have environmental and social impacts, especially in regions where most of the world’s lithium resources are located. These impacts have consequences, including the depletion and pollution of water sources the degradation of land the loss of biodiversity violations of human rights and conflicts within society. 
For instance in the lithium triangle consisting of Argentina, Bolivia and Chile – which holds than half of the world’s lithium reserves – mining activities consume substantial amounts of water in arid and salt rich regions. This has an impact on local communities and indigenous peoples who rely on these water sources for their livelihoods. The extraction process often involves mixing chemicals with the water used for lithium extraction, which is then disposed into evaporation ponds. There is a risk of leakage and pollution associated with these ponds. 

Additionally foreign companies often dominate the lithium industry without sharing its benefits with local populations generating feelings of resentment and fueling resistance. Therefore, addressing issues related to lithium production and consumption goes beyond securing a resource; it also involves ensuring sustainability and equity.
To address these challenges effectively at a level it is necessary to invest in increased refinement techniques for lithium processing while adopting more stringent environmental and social standards for the industry. Furthermore promoting efficient usage patterns such as recycling and reusing batteries can contribute to a more sustainable approach towards lithium consumption.

It is important to remember that while the focus is often on the lithium war, we should not neglect the importance of research and innovation in other battery technologies.Exploring options like sodium ion, zinc air or solid state batteries can help lessen our reliance on lithium and provide a range of affordable solutions for this expanding market.