The global race to secure lithium, a critical raw material for electric vehicle (EV) batteries, remains fierce despite recent challenges. The electric vehicle market slowdown has led to a dip in lithium prices; however, the industry anticipates a sustained, long-term demand for lithium, projecting a surge from 310,000 tons in 2020 to around 3.8 million tons by 2035, according to Statista.
In response to this anticipated demand, various industry players, including traditional mining companies, battery manufacturers, automotive giants, and major oil corporations, are actively entering the competition to secure lithium resources worldwide.
Exxon Mobil, the largest oil company in the United States, unveiled plans in November 2023 to initiate lithium production from briny waters in Arkansas, known for substantial lithium deposits. With aspirations to supply lithium for over 1 million EVs annually and become a leading supplier by 2030, Exxon sees this venture as a crucial step in meeting the urgent need to ramp up domestic production of critical materials.
Dan Ammann, President of Exxon’s Low Carbon business unit, emphasized, “In the long term, lithium really is a global opportunity.”
Recognizing the importance of lithium hydroxide’s superior properties, including better electrical conductivity and a lower melting point, Korean companies are also securing diverse sources essential for manufacturing EV batteries. Last year, Korea imported 95 percent of its lithium, with 64 percent coming from lithium hydroxide imports from China.
In 2023, LG Chem achieved a milestone by securing North American lithium, acquiring a 6 percent stake in Piedmont Lithium, a U.S. mining company. They agreed to an annual supply of 50,000 tons of lithium concentrate from Canadian mines for four years, sufficient for around 500,000 high-performance electric cars.
In November 2023, EcoPro signed a business agreement with Australian lithium company Ioneer, actively pursuing the development of a lithium mine in Nevada. POSCO Holdings, proactive in securing lithium resources in Argentina and Australia, is exploring the extraction of lithium from Canadian oil fields.
In part, major countries are strategically positioning themselves for potential lithium weaponization, particularly by China, the world’s leading lithium refining country responsible for approximately 65 percent of total refined lithium compound production globally. The U.S. is actively engaged in new exploration initiatives, with the Department of Energy disclosing an estimated 18 million tons of lithium beneath the Salton Sea in California, enough to produce batteries for 375 million electric cars.
