The race to ditch fossil fuels hinges on a resource we rarely think about: batteries. Demand for rechargeable power is soaring, driven largely by electric vehicles. Global battery capacity in EVs skyrocketed from 50 gigawatt hours in 2016 to nearly 800 gigawatt hours by 2023, and by 2035, it could be ten times higher. But keeping up with this demand means securing the essential ingredient—lithium. The world has plenty, but accessing and refining it is an entirely different challenge.
Rechargeable batteries have been around for over 150 years. The first, a lead-acid battery, was created in 1859 by French physicist Gaston Planté and was even used in early electric cars at the turn of the 20th century. Today’s lithium-ion batteries are far more advanced, thanks to groundbreaking work by John Goodenough, Stanley Whittingham, and Akira Yoshino in the 1970s and 1980s. Their innovation laid the foundation for modern electric vehicles, but the lithium supply chain is struggling to keep up.
Lithium is the ideal battery material. It is the lightest metal in the periodic table and carries a high electric charge, making it perfect for energy storage. Global lithium reserves are estimated at 105 million tonnes, with 28 million tonnes currently extractable using today’s technology. Annual demand, currently at 200,000 tonnes, is expected to multiply sevenfold by 2040. Most of the world’s accessible lithium is concentrated in just a few regions, particularly the ‘lithium triangle’ of Chile, Bolivia, and Argentina. Australia is the leading producer, while China controls much of the refining process.
Extracting lithium is a resource-intensive operation. The process typically involves pumping underground water into large evaporation ponds, consuming millions of litres of fresh water—often in arid regions where water is scarce. Alternative methods, such as extracting lithium from seawater, exist but are currently inefficient and environmentally demanding. Scientists are working on new filtration and separation technologies to extract lithium more effectively from lower-quality sources. However, significant breakthroughs are still needed to make these methods commercially viable.
Sodium-based batteries are being explored as a potential alternative. Sodium shares many of lithium’s properties but is heavier and less efficient, making it a challenging replacement. In the meantime, China has established itself as the dominant force in the lithium battery industry. Despite producing only 20% of the world’s lithium, it refines nearly 60% and manufactures over 80% of the key battery components. Other nations must invest heavily in the full battery production cycle if they want to compete.
Beyond securing supply, battery performance must improve. Longer-lasting, recyclable batteries are essential to making EVs and renewable energy storage truly sustainable. The future of clean energy depends on getting lithiumThe race to ditch fossil fuels hinges on a resource we rarely think about: batteries. Demand for rechargeable power is soaring, driven largely by electric vehicles. Global battery capacity in EVs skyrocketed from 50 gigawatt hours in 2016 to nearly 800 gigawatt hours by 2023, and by 2035, it could be ten times higher. But keeping up with this demand means securing the essential ingredient—lithium. The world has plenty, but accessing and refining it is an entirely different challenge.
Rechargeable batteries have been around for over 150 years. The first, a lead-acid battery, was created in 1859 by French physicist Gaston Planté and was even used in early electric cars at the turn of the 20th century. Today’s lithium-ion batteries are far more advanced, thanks to groundbreaking work by John Goodenough, Stanley Whittingham, and Akira Yoshino in the 1970s and 1980s. Their innovation laid the foundation for modern electric vehicles, but the lithium supply chain is struggling to keep up.
Lithium is the ideal battery material. It is the lightest metal in the periodic table and carries a high electric charge, making it perfect for energy storage. Global lithium reserves are estimated at 105 million tonnes, with 28 million tonnes currently extractable using today’s technology. Annual demand, currently at 200,000 tonnes, is expected to multiply sevenfold by 2040. Most of the world’s accessible lithium is concentrated in just a few regions, particularly the ‘lithium triangle’ of Chile, Bolivia, and Argentina. Australia is the leading producer, while China controls much of the refining process.
Extracting lithium is a resource-intensive operation. The process typically involves pumping underground water into large evaporation ponds, consuming millions of litres of fresh water—often in arid regions where water is scarce. Alternative methods, such as extracting lithium from seawater, exist but are currently inefficient and environmentally demanding. Scientists are working on new filtration and separation technologies to extract lithium more effectively from lower-quality sources. However, significant breakthroughs are still needed to make these methods commercially viable.
Sodium-based batteries are being explored as a potential alternative. Sodium shares many of lithium’s properties but is heavier and less efficient, making it a challenging replacement. In the meantime, China has established itself as the dominant force in the lithium battery industry. Despite producing only 20% of the world’s lithium, it refines nearly 60% and manufactures over 80% of the key battery components. Other nations must invest heavily in the full battery production cycle if they want to compete.
Beyond securing supply, battery performance must improve. Longer-lasting, recyclable batteries are essential to making EVs and renewable energy storage truly sustainable. The future of clean energy depends on getting lithium production right—without it, the shift away from fossil fuels will stall.
Firering Strategic Minerals plc (LON:FRG) is an AIM-quoted mining company focused on becoming a near-term cash generating producer of Quicklime, through their Limeco Project in Zambia, whilst at the same time progressing with the exploration and development of their Atex Lithium Project, Côte d’Ivoire. production right—without it, the shift away from fossil fuels will stall.
