Worldwide crisis of lithium required for batteries of electric vehicles

Lithium is extracted from hard rock or brine mines. With production from hard rock mines, Australia is the world's largest supplier.

The demand for lithium has increased rapidly in the production of electric vehicles.

Lithium carbonate prices have hit record highs in the past one year due to increased demand from Chinese battery makers.

The demand for lithium has increased due to the increase in the production of electric vehicles using lithium-ion batteries. But there is a crisis of its supply all over the world. To compete with China, the race to bring new mines is going on in western countries. According to Reuters, Serbia's government on Thursday canceled the license for a major lithium project owned by Anglo-Australian mining company Rio Tinto Plc. Here are some facts on the major lithium mines and lithium supply, based on data from Australia's Department of Industry, the US Geological Survey, company reports and Credit Suisse reports. 

Lithium comes out of salty mines

Currently, lithium is extracted from hard rock or brine mines. With production from hard rock mines, Australia is the world's largest supplier. Whereas, Argentina, Chile and China are producing it from salt lakes. According to Australia's Department of Industry, the total global production of lithium carbonate in December was 485,000 tonnes in 2021. This was projected to increase to 615,000 tonnes in 2022 and 821,000 tonnes in 2023. Credit Suisse analyzes lithium production to reach 588,000 tonnes in 2022 and 736,000 tonnes in 2023. But its demand will be high. The reason for the high demand is the battery used for electric vehicles.

Prices may increase

Lithium carbonate prices have hit record highs in the past one year due to increased demand from Chinese battery makers. Allkem, one of the world's top 10 lithium producers, has said that by June its price will be $ 20,000 (about Rs 15 lakh) per tonne. 

World's largest lithium mines

Greenbush (Western Australia). It can produce up to 1.34 million tonnes annually. 

Pilgangur (Western Australia). It is expected to produce 400,000-450,000 tonnes by June 2022. 

Mount Catlin (Western Australia). The company mining here produced 230,065 tonnes of spodumene concentrate in 2021.

Mibra (Brazil). 90,000 tonnes of spodumene are produced here every year. 

Mound Marion (Western Australia). It is expected to produce 450,000-475,000 tonnes of spodumene by June 2022.