You are here:
null

A National Security Priority.

Domestic lithium production is a national security priority for the United States. Lithium is a critical component in the production of batteries used in electric vehicles, mobile phones, and other electronics.

The use of lithium batteries in a wide variety of electronics makes it a critical material for US national security. Dependence on foreign countries for lithium supply could put the US at risk of supply disruptions, price volatility, or even trade wars.

American Demand is Outpacing Supply

The United States produces approximately 5,000 tons of lithium per year, a meager amount compared to the country’s demand. While some projects are being developed with varying degrees of success, it will not come close to meeting future demand.

The State of California

The State of California has required 100% zero-emission passenger vehicle and light truck sales by 2035, which will require a significant increase in the production of EVs and therefore a greater demand for lithium batteries.

American Demand is Outpacing Supply

The United States produces approximately 5,000 tons of lithium per year, a meager amount compared to the country’s demand. While some projects are being developed with varying degrees of success, it will not come close to meeting future demand.

The State of California

The State of California has required 100% zero-emission passenger vehicle and light truck sales by 2035, which will require a significant increase in the production of EVs and therefore a greater demand for lithium batteries.

Government Incentives

The U.S. government has allocated tens of billions dollars to incentivize domestic lithium production as there are few American companies in the space.

Funding incentives are provided through a variety of measures, including; research and development programs, tax incentives and subsidies, and streamlining the permitting process for lithium mining and refining operations.

Government Incentives

The U.S. government has allocated tens of billions dollars to incentivize domestic lithium production as there are few American companies in the space.

Funding incentives are provided through a variety of measures, including; research and development programs, tax incentives and subsidies, and streamlining the permitting process for lithium mining and refining operations.

Foreign Dominace

China Controls the Market.

China currently has a significant amount of control over the global lithium refining industry. According to a report by Benchmark Mineral Intelligence, China accounted for approximately 60% of the world’s lithium hydroxide production capacity in 2020, and up to 85% of all global refinery capacity.
null

In addition to its production capabilities, Chinese companies have also made strategic investments in lithium refining operations around the world. For example, Chinese companies have invested in lithium refining operations in Australia and Chile, two of the largest lithium producers in the world. These investments give China access to a diverse range of lithium resources and help solidify its position as a dominant player in the global lithium refining industry.

China’s control of the lithium refining industry has significant implications for the global electric vehicle industry and the transition to a cleaner energy future. As the demand for lithium-ion batteries continues to grow, the ability of China to control the supply and prices of key components like lithium hydroxide can have a significant impact on the cost and availability of electric vehicles. This has led to concerns about the potential for China to use its dominance in the lithium refining industry as a tool for geopolitical influence. Market Dominance: China’s dominant position in the global lithium market has allowed the country to exercise significant control over the price of lithium. By controlling a significant portion of the world’s lithium supply, China can influence prices by adjusting its production and export levels.

The Need for Lithium

Demand Will Continue to Rise.

The demand for lithium is expected to increase due to the growing demand for electric vehicles, renewable energy storage systems, portable electronics, and industrial applications.

As the demand for lithium continues to grow, there may be increased pressure on lithium prices and a need for new investments in lithium mining and processing to meet the demand.

The Need for Lithium

Demand Will Continue to Rise.

The demand for lithium is expected to increase due to the growing demand for electric vehicles, renewable energy storage systems, portable electronics, and industrial applications.

As the demand for lithium continues to grow, there may be increased pressure on lithium prices and a need for new investments in lithium mining and processing to meet the demand.