What are lithium-ion batteries and why are they so controversial?
It’s no secret that the cars and trucks we use to commute to work or see our family each day take a significant toll on the environment. According to the U.S. Department of Energy, highway vehicles annually release a whopping 1.5 billion tons of greenhouse gasses into the atmosphere. And as we struggle to adjust to the hot, disastrous reality of climate change, many of us are turning to electric-powered vehicles as a comparatively worry-free alternative to stressing out at the gas pump. But there’s a catch to the well-deserved hype around these newfangled vehicles: Car companies are fighting over a surprisingly limited amount of lithium used to make electric car batteries.
Globally, 10 million electric cars were sold in 2022. According to IEA’s Global Electric Vehicle Outlook, 14 million electric cars are expected to be sold in 2023 — a 35 percent rise in sales. The only issue is that car production may not be able to keep up with growing demand — and the behind-the-scenes drama is getting tense. Here’s how this fight could affect you, your purchase, and even the environment.
What are lithium-ion batteries?
You know that electric vehicles don’t run on gas, but what exactly is under the hood? As it turns out, if you’ve pulled the trigger on that new Tesla, you’ve invested in a lithium-ion battery. The Clean Energy Institute of Washington defines a lithium-ion battery as “an advanced battery technology that uses lithium ions as a key component of its electrochemistry.”
Simply put, lithium-ion batteries are rechargeable batteries powered by lithium ions.
Though you may not know everything about lithium-ion batteries, you’ve likely ridden in a vehicle powered by one (or used a cellphone or laptop powered by a lithium-ion battery). According to the Environmental and Energy Study Institute, lithium-ion batteries control over “90 percent of the global grid battery storage market.” Which makes sense, considering that lithium-ion batteries have high energy density and are more lightweight than other green alternatives.
Heavier lead-acid batteries, for example, were often used in electric vehicles before being widely replaced by lithium. Some companies — like nanFlowcell — are trying to start a new trend of electric vehicles that use flow batteries, a less popular type of battery with a long life cycle that aren’t traditionally used in cars. But it isn’t yet clear if that effort will take off.
Also known as “white gold,” almost all of the lithium that we use for our favorite convenient, wireless products comes from hard rock and brine mines scattered throughout the world. Chile has the world’s largest lithium reserves, while Australia is the world’s biggest lithium supplier.
Why is there a lithium shortage?
Long story short: Our burgeoning enthusiasm for all things electric is threatening to outgrow the rate at which we can extract lithium.
Global output of lithium will triple this decade, but that sizable output may not be able to keep up with the increased production of electric vehicles. Lithium alone — not including other metals needed to construct the batteries — is forecast to have a 1.9 million metric ton demand in 2028.
“There will be a shortage of EV battery supplies,” Joshua Cobb, senior auto analyst for BMI, a research firm, tells the Associated Press.
As this prospective shortage emerges, governments and companies are rushing to control access.
How does lithium mining affect the environment?
We rely on electric energy because it’s supposed to be clean. The trouble with the demand for lithium batteries, however, is that mining lithium is not always environmentally friendly.
Since lithium is often mined from underwater reserves, there’s a risk of polluting local water sources. Unfortunately, the damage isn’t limited to hazardous pollution.
Back in 2009, lithium battery expert Guillermo Gonazlez warned, “Like any mining process, it is invasive, it scars the landscape, it destroys the water table and it pollutes the earth and the local wells.”
Aside from taking a toll on the planet, the fervor for lithium mining also threatens indigenous lands. Construction has begun on a Nevada mine, despite protests from native groups who say the mining will disrupt surrounding ecosystems.
A native group called People of Red Mountain is resisting the mining, which “would use 5,200 acre-feet per year (equivalent to an average pumping rate of 3,224 gallons per minute) in one of the driest regions in the nation.” People of Red Mountain object to the “152,703 tons of carbon dioxide equivalent emissions” that the mine would emit annually.
In Chile, indigenous groups are similarly uncomfortable with the prospect of sacrificing their land for the sake of electric batteries.
Francisco Mondaca, a civil engineer and head of the environmental unit of the Atacama Indigenous Council, told Reuters, “We’re in the most arid desert and to exchange what we have in water and vegetation for a lithium battery is going to leave us with nothing.”
How are companies and countries navigating a possible lithium shortage?
Companies aren’t budging in their battle for supremacy. Earlier this year, American automaker General Motors invested a whopping $650 million in the Nevada mine, despite the controversies.
Not to be outdone, the parent company of Chinese automaker BYD Auto has announced over the past 18 months that they’ve spent $5 billion investing in lithium mining and refining. Most of BYD’s investments are in China, but they’ve also committed to investing $290 million on a lithium processing facility in Chile. Because of this arrangement, BYD will get discounts from Chilean lithium miners.
And as these companies race to stake their claims, countries are making big promises. In 2023, President Biden announced a goal for 50 percent of vehicle sales in the country to be electric by 2030. China, in contrast, has a goal for 40 percent of vehicle sales to be electric by 2030.
Despite the tensions behind the looming shortage, there’s good news for consumers: The price of lithium has actually been falling, which does result in cheaper cars. Which means that despite all the behind-the-scenes drama, we’re pivoting toward a world powered by lithium at full speed.
