Extraction of the raw material is not growing as fast as the production of electric cars.
(Photo: AP)
Las Vegas According to lithium manufacturers, the global supply of electric vehicles will soon not be able to meet demand. “You could get into a crisis situation where the battery companies don’t have security for (lithium) commodities,” Lake Resources chairman Stu Crow said on the sidelines of this week’s Fastmarkets lithium and battery commodities conference in Las Vegas. Mine permitting delays, labor shortages, and inflation can all contribute to undersupply of the battery metal.
At stake is the pace at which electric vehicles could displace combustion engines, a key goal of the green energy transition. “There’s a disconnect between the panic we’re seeing here and the frenetic activity trying to secure supplies within the industry,” Crow said. This week, Lake Resources delayed initial production from its Kachi lithium project in Argentina by three years. The company cited the power supply and other logistical problems as the reason.
With aggressive EV plans from Stellantis, Ford, and more automakers, lithium is one of the most sought-after metals in the world today. The world’s largest lithium producer, Albemarle, is growing in North and South America, Asia and Australia. Still, the company expects global lithium demand to exceed supply by 500,000 tons in 2030.
Other producers have slightly different forecasts, but all warn of an impending shortage. “It’s a big challenge,” said Eric Norris, head of Albemarle’s lithium business. Even as more lithium mines are built, there aren’t enough facilities to produce special types of the metal for batteries. “There’s a big difference between lithium that comes out of the ground and lithium that goes into a battery,” said Sarah Maryssael of Livent, who supplies Tesla. Automakers may be forced to accept lower quality lithium, reducing the range of electric car batteries.
According to Fastmarkets, 45 lithium mines were operational around the world last year. Eleven more are scheduled to open this year and seven more next year. According to experts, this pace is well below what would ensure an adequate global supply.
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