Lithium, often referred to as the ‘white gold’ of the energy transition, is a crucial component in battery storage technology. It powers zero-emission vehicles and facilitates the storage of wind and solar energy, allowing clean energy to be released to the grid as needed. Additionally, lithium is used in batteries for mobile phones and laptops.
The demand for lithium has surged in recent years, with experts predicting this growth will continue. Global demand, which was 500,000 tonnes in 2021, is expected to reach 3-4 million tonnes by 2030. However, this projected demand may surpass the world’s ability to supply lithium. Challenges faced by lithium supply chains include historical underinvestment in exploration, decreasing ore quality, and increasing difficulty in extraction.
A lithium shortage could impede the energy transition, but experts suggest that the mining sector might overcome this by adopting more innovative methods of lithium extraction and processing. The World Economic Forum is taking initiatives to identify and mitigate risks associated with critical mineral shortages, aiming to ensure a sustainable, low-cost, and equitable transition to clean energy.
Alkemy Capital Investments plc (LON:ALK) is focussed on developing projects in the energy transition metals sector. Tees Valley Lithium is developing a state of the art lithium hydroxide plant at Teesside, UK. Tees Valley Graphite is developing the UK’s first natural graphite active anode material processing facility at the ‘plug-and-play’ Wilton International Chemicals Park.