Lithium Americas is planning to extract lithium from a clay deposit at its Thacker Pass, an extraction method that has never been done on a commercial scale.
The US government and private sector are investing billions in lithium production to support the electric vehicle market and reduce dependence on China.
Major projects from companies such as Lithium Americas, Exxon Mobil, and Albemarle aim to increase domestic lithium production but are facing delays and opposition from environmental and indigenous groups. Despite the obstacles, demand for lithium is expected to increase as the electric vehicle market expands, spurring further investment in domestic production to ensure a sustainable green transition.
The United States has big plans to produce lithium in the coming years, ramping up production to support the introduction of large-scale storage systems and greater adoption of electric vehicles. To ensure the United States has enough lithium to support the rapid growth of the battery market and reduce dependence on China, President Biden is supporting the development of the country’s industry with funding from the Inflation Reduction Act (IRA) and other national policies. Meanwhile, the private sector is investing heavily in lithium as consumer adoption of electric vehicles continues to grow year after year.
In March, the U.S. Department of Energy (DOE) announced plans to grant Lithium Americas up to $2.26 billion under its High-Tech Vehicle Manufacturing Loan Program for the construction of its Thacker Pass lithium project in Nevada. Development began in March 2023, and the mine is expected to begin operations later in the decade, providing lithium supplies to General Motors. This marks one of the largest government investments in the lithic industry to date. The government sees the development of the domestic critical minerals industry as critical to achieving a green transition, providing the necessary materials for large-scale renewable energy projects and the introduction of electric vehicles.
Initial production is expected to be approximately 40,000 metric tons of lithium carbonate battery pack per year, equivalent to the amount needed to power approximately 800,000 electric vehicles, eventually increasing capacity to 80,000 tons per year. In addition to public funding, the project is also supported by GM, which has invested $650 million in the development.
Lithium Americas is planning to extract lithium from a clay deposit at its Thacker Pass, an extraction method that has never been done on a commercial scale. Extracting lithium from clay requires the company to import sulfur to create sulfuric acid. Lithium Americas will then build a rail terminal about 97 km from the mine to bring materials to the site.
In November last year, Exxon Mobil announced plans to begin lithium production starting in 2027. It will extract lithium from brackish water in underground wells in Arkansas. The company plans to use conventional oil and gas drilling methods to access the deposits, which are located approximately 10,000 feet underground. It will then use direct lithium extraction (DLE) technology to separate the lithium from the salt water. Exxon will partner with Tetra Technologies to develop its lithium business and will sell supplies under the name Mobil Lithium.
Exxon aims to supply lithium for more than a million electric vehicles per year, to become one of the largest lithium suppliers in the United States by the end of the decade. This could cost the company up to $2 billion in investment to supply 50,000 tons of lithium.
Despite the positive steps towards the development of a lithium industry in the United States, it is not all sunshine and roses as several projects are expected to be developed in years, while, at the same time, environmentalists and indigenous groups across the country are critical regarding plans for new mining activities. Albemarle, a major lithium producer, announced plans to reopen the rich lithium mineral resource at its Kings Mountain mine in North Carolina by the end of 2026 to help increase the nation’s supply of the critical mineral. However, it is facing delays due to the drop in lithium prices, about 40 percent over the past year.
The company hopes to produce enough lithium to support the production of up to 1.2 million electric vehicles per year. Albemarle plans to proceed with the permitting process, which could take up to two years, with construction expected to follow. However, the company believes that lithium prices need to be at least $20 per kilo to justify new investments. The average price in 2023 stood at $15 per kilo. However, demand for lithium is expected to increase as demand for large-scale storage systems increases and the adoption of electric vehicles grows.
In addition to weak lithium prices over the past year, many mining developments have been delayed due to opposition from environmentalists and indigenous groups who oppose new mining projects. While lithium mining is critical to a green transition, adequate regulations and oversight must be in place to ensure that mining companies do not cause unnecessary environmental harm when transitioning from fossil energy sources to "less harmful" alternative energy sources ".
Original article published on Money.it Italy 2024-06-01 07:12:00. Original title: Gli Stati Uniti puntano sull’estrazione del litio. Ecco tutti i progetti del 2024
