As concerns rise regarding the availability of lithium, partially due to limited access to mines in Argentina, Bolivia and Chile—the three main sources of supply—Australia has surfaced as a potential answer to the possible crisis. The added influx would be quite welcome considering demand is predicted to grow by 600,000 to 800,000 tons over the next 10 years.
The reason for increased demand is simple: electronic devices have become a necessity, making the modern world run on batteries. Also, a lack of lithium has an even greater impact on the evolution of electric vehicles (EVs). Lithium-ion batteries have become the norm for EVs because of their high power-to-weight ratio, energy efficiency and performance in high temperatures. They also hold their charge longer over time.
Lithium is mined from three types of deposits: brines, hard-rock ore and sedimentary rocks. The first two have been the types for commercial lithium production. Thanks to large reserves—estimated to be the most in the world at 7.5 million metric tons—Chile has long been at the top of the supply chain for brine operations. But, the country keeps a tight control of its lithium supply, limiting lithium production above 80,000 metric tons.
Chile and Australia account for approximately 75 percent of the world’s lithium. The bulk of Australia’s resources are in spodumene-bearing pegmatite deposits (hard-rock ore). Historically, once lithium is mined from Australian ores, it’s shipped overseas. The country has been focused on changing that to keep the additional benefits of lithium mining down under.
“Lithium prices have tripled since 2010 and global battery consumption is predicted to increase five-fold in the next 10 years, driven by a global shift to electric vehicles in some markets and off-grid storage to support renewable energy development,” said Australia Resources Minister Matthew Canavan. “As the world’s largest producer of lithium and with mineral reserves covering 90 percent of the elements required in lithium-ion battery production, we have an enormous opportunity to leverage off this rapidly-growing industry.”
All signs point to success in regard to attracting overseas investors once focused solely on brine operations. Major South American lithium producers continue to invest in Australian spodumene projects. Brine operator Albemarle recently entered into an agreement with the Australian mining company Mineral Resources to create a 50/50 joint venture in Pilbara. The goal is for the plant to be in operation by the second quarter of 2019. In 2017, SQM, a Chilean brine producer, gained a 50 percent stake in operations in Mt. Holland, Australia, which is being developed by Kidman Resources.
As demand for lithium increases, many researchers are finding ways to improve their efficiency or find alternatives. To learn more, check out Improving Battery Performance by Using Oxide Nanocrystals and NantEnergy’s Zinc-Air Battery Crosses the $100/kWh Barrier.