Botswana lithium energy storage power supply spot

Why is lithium a determinant of economic viability?

The concentration, or grade, of the lithium resource is a strong determinant of economic viability. Other countries, such as Bolivia, possess lithium resources that are currently considered uneconomical. The limited geographical distribution of lithium production tightens the market despite the metal’s abundance in the earth’s crust.

Should lithium processing facilities be built outside China?

The local content requirements and foreign entity of concern restriction in the Clean Vehicle Tax Credit of the US Inflation Reduction Act incentivize the construction of lithium processing facilities outside of China.

Which countries have the most economically viable lithium resources?

These three countries, together with Argentina, hold most of the economically viable reserves. The concentration, or grade, of the lithium resource is a strong determinant of economic viability. Other countries, such as Bolivia, possess lithium resources that are currently considered uneconomical.

Can sodium-ion batteries ease supply-side pressure on lithium?

Participants agreed that sodium-ion batteries have the potential to ease supply-side pressure on lithium by acting as a supplement for the supply chain. An expert from a sodium-ion battery startup said at the event that sodium-ion batteries, which trade sodium for lithium, are a “pressure release valve” for lithium.

How does China's control of the lithium market affect price volatility?

Roundtable attendees also said China’s control of the market has allowed it to create price volatility for lithium chemicals needed for batteries—lithium carbonate and lithium hydroxide—by, for example, building up large inventories of cathodes and then selling them off.

How much does the US Department of energy pay for lithium?

The US Department of Energy is providing Albemarle $149 million for a lithium processing plant and Piedmont Lithium $141 million for a lithium hydroxide plant through funding in the Bipartisan Infrastructure Law.