The lithium industry plans to expand outside China so that demands can be met. Of course, the lithium battery-making materials produced outside the Asian country are expected to be more expensive.
(Photo : Photo credit should read EZEQUIEL BECERRA/AFP via Getty Images)
Costa Rican Roberto Quiros, owner of two electric cars, charges one of them at a Costa Rican Institute of Electricity (ICE) charging station in San Jose on December 4, 2018.
For the past few years, China has been the leading supplier of lithium. Since the electric car industry is becoming well-known, the demand for this battery material is also increasing.
Because of this, the lithium suppliers in China are having some problems meeting the demand of EV developers and gadget makers.
Lithium Industry To Expand Outside China
According to Bloomberg's latest report, global lithium needs around $42 billion before expanding outside China. This means that the battery-making material market requires as much as $7 billion each year from investors.
(Photo : Photo by STR/AFP via Getty Images)
This photo taken on March 12, 2021 shows a worker with car batteries at a factory for Xinwangda Electric Vehicle Battery Co. Ltd, which makes lithium batteries for electric cars and other uses, in Nanjing in China's eastern Jiangsu province. - China OUT (Photo by STR / AFP) / China OUT
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If this happens, the lithium expansion can happen in 2028. Experts said this would help the battery material industry meet the expected 2.4 million tons yearly demand.
But, consumers will still need to wait until 2030 before the lithium industry starts going back on track. The lithium expansion is expected to happen as North America and Europe plan to become independent from China's lithium supplies.
"If you want lithium with as little ESG impact as possible, the solution may cost more outside China," Cameron Perks, a lithium analyst.
In the United States, the lithium industry is receiving around $3 billion in grants from the Biden administration. But, this is still not enough. Investors still need more funding if the lithium battery-making material expansion outside China can start happening.
Other Lithium Activities
Aside from the lithium battery expansion outside China, experts report the Salton Sea, as reported by CNBC, is now being observed.
Researchers claimed that the world's greenest lithium could be acquired from the Salton Sea if there were efficient extracting technologies.
For the past few years, lithium has been one of the major concerns of environmentalists because of the way how it is extracted. If you want to see further details about the alleged Salton Sea lithium extraction, you can visit this link.
Meanwhile, a new lithium-sulfur power cell is expected to be three times more efficient compared to Li-on batteries.
On the other hand, the U.S. solar and battery storage enhancement will increase the capacity by around 60%.
For more news updates about lithium batteries and other EV-related technologies, always keep your tabs open here at TechTimes.
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Written by: Griffin Davis
