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With the growing demand for electric vehicles in the world, the sought alkali metal Lithium will stand to be the most important piece of element required for the future.

What is Lithium?

Lithium is located in Group 1 of the periodic table and is an alkali metal that was discovered from plant material and makes up 0.002% of the earth’s crust. It has a silvery metal appearance, soft to the touch surface, and is the least dense of all metals. The name comes from the word ‘lithos’ which is Greek for stone [1].

Lithium was discovered in 1817 by Swedish chemist Johan August Arfwedson. It was from the mineral petalite, and was also sourced in brine deposits [2]. Additionally, salts in mineral springs had traces of lithium, and the following ores had lithium present:

• Pegmatite
• Spodumene
• Lepidolite
• Amblygonite

Lithium is currently used in a wide variety of applications such as a scavenger, high-power rechargeable battery, and single-use batteries. These batteries are used for electric vehicles (EVs), mobile phones, laptops, digital cameras [2], pacemakers, toys and clocks [1].Future use of lithium strongly points towards the applications of electrical vehicles (EV), this is evident from the 2023 Global EV Outlook [3]. There has been an increase of 65% in automotive lithium-ion battery demand in direct correlation with the linear growth of electric vehicle car sales. On the global market, China’s lithium battery demands grew over 70%, while EV sales increased by 80% [3].There are both benefits and limitations in using lithium batteries.

The main benefits [4] are that they have:

• High energy density – stores significant amount of energy
• Fast charging – quick recharge times
• Low self-discharge – retain their charge for long periods when not in use

The main limitations [4] [5] are that they have:

• A high cost – high cost compared to alkaline batteries
• Limited life span – capacity decreases over time, requires replacement, adding to long term cost
• Safety concerns – Example of this is thermal runaway which may lead to fire or explosions
• Temperature sensitivity – require a specific temperature range to perform optimally

All the benefits discussed revolve around lithium being more practical whereas the limitations discussed revolve around lithium being costly and unsafe.

What is the current cost of lithium and the future prospects?

The current price of lithium sits at $14.2 US Dollars (USD) per kilogram (kg)kg. Over the past 6 years, the price of lithium has been fluctuating, where in 2023, it peaked at roughly $84 USD per kg [6]. A probable cause to this would be the increased application of lithium in EV’s. It can then be seen that from 2023 onwards, lithium prices start to decline.  

Figure 1: Cost of lithium (USD/kg) (2018 – 2024) [6]

This is because lithium was normally utilised in small amounts for batteries and mobile devices, before the implementation of EV’s. Currently, the largest EV maker is China and the sudden influx of EV supply has caused an oversupply in China, resulting in many manufacturers in losing production. Furthermore, it led to the suspension of present and future lithium operations which caused the lithium prices to drop [7].

Although lithium is an extremely favourable element to be used in EV’s, there are other alternative technologies currently being trialled such as hydrogen cars, solar cars and the existing hybrid vehicles. The existence of these competitors has created an unknown future for lithium.

Lithium batteries are currently standing on a very shaky foundation. What determines the future value of lithium will be decided what happens next in the market and technological advancements.

Sources:

[1] Royal Society of Chemistry, “Lithium – Element information, properties and uses | Periodic Table,” Rsc.org, 2011. Available: https://www.rsc.org/periodic-table/element/3/lithium

[2] J. Dye, “lithium | Definition, Properties, Use, & Facts,” Encyclopædia Britannica. Dec. 06, 2018. Available: https://www.britannica.com/science/lithium-chemical-element

[3] IEA, “Trends in batteries – Global EV Outlook 2023 – Analysis,” IEA, 2023. Available: https://www.iea.org/reports/global-ev-outlook-2023/trends-in-batteries

[4] B. T. LLC, “The Pros and Cons of Lithium Ion Batteries: A Deep Dive,” Bioenno Power, Oct. 12, 2023. Available: https://www.bioennopower.com/blogs/news/the-pros-and-cons-of-lithium-ion-batteries-a-deep-dive#:~:text=In%20conclusion%2C%20lithium%2Dion%20batteries

[5] electronics notes, “Li-Ion Battery Advantages / Disadvantages | Lithium Ion | Electronics Notes,” Electronics-notes.com, 2019. Available: https://www.electronics-notes.com/articles/electronic_components/battery-technology/li-ion-lithium-ion-advantages-disadvantages.php

[6] D. M. Prices, “Lithium Price,” http://www.dailymetalprice.com. Available: https://www.dailymetalprice.com/lithium.html

[7] J. L, “Why Lithium Prices are Plunging and What to Expect,” Carbon Credits, Feb. 08, 2024. Available: https://carboncredits.com/why-lithium-prices-are-plunging-and-what-to-expect/#:~:text=The%20current%20decline%20in%20lithium