Refinery Capacity is Critical
American lithium refinery capacity is critical for several reasons :
Diversifying Supply
As the demand for lithium-ion batteries continues to increase, the need for a diversified supply of lithium becomes increasingly important. The majority of lithium refining currently takes place in China, which can create supply chain vulnerabilities and concerns about the reliability of lithium supply. Developing lithium refinery capacity in the US will help diversify the supply of lithium and reduce reliance on a single country or region for this critical component of lithium-ion batteries.
Supporting Domestic Industry
Developing lithium refinery capacity in the US will also support the growth of the domestic electric vehicle industry. Currently, the US is heavily reliant on imported lithium and lithium-ion batteries to support its electric vehicle market. By developing domestic lithium refinery capacity, the US will support the growth of a domestic supply chain for lithium-ion batteries and reduce reliance on imported components.
Job Creation
Developing a domestic lithium refining industry will also create jobs and stimulate economic growth. The construction and operation of lithium refineries will create jobs in engineering, construction, and operations, as well as supporting industries like transportation and logistics.
Innovation
Lithium refining will be a resource-intensive process, and developing domestic refinery capacity can will help ensure that environmental and sustainability standards are met. By developing a domestic lithium refining industry, the US will ensure that it meets the highest environmental standards and can reduce the environmental impact of transporting lithium and lithium-ion batteries over long distances.
