{"id":104793,"date":"2023-06-02T11:48:00","date_gmt":"2023-06-02T15:48:00","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=104793"},"modified":"2023-06-09T11:48:46","modified_gmt":"2023-06-09T15:48:46","slug":"us-lithium","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/us-lithium\/","title":{"rendered":"Why Lithium Is So Crucial (and How the US Is Falling Behind)"},"content":{"rendered":"\n

What, exactly, is lithium? Who\u2019s in the race for lithium supply chain superiority? Who are the likely winners and losers?<\/p>\n\n\n\n

The US and other global powers are in a race to lock in lithium supply chains to meet growing electric vehicle needs. But the US faces a long road to becoming a player in the lithium supply chain game, and it\u2019s likely to remain reliant on other countries for the mineral for the foreseeable future.<\/p>\n\n\n\n

Below we’ll take a look at the US lithium situation compared to other countries.<\/p>\n\n\n\n\n\n\n\n

The Demand for Lithium<\/h2>\n\n\n\n

With global revenue for the electric vehicle market expected to hit $457 billion<\/a> in 2023, lithium-ion batteries are one of the planet\u2019s most valuable commodities\u2014and every major world power wants to be in on their production. The US and other global powers are in a race to lock in lithium supply chains to meet growing electric vehicle needs and establish economic and technological dominance.<\/p>\n\n\n\n

Why Lithium Is So Important<\/strong><\/h3>\n\n\n\n

Lithium, also known as \u201cwhite gold,\u201d is a soft, light metal<\/a> found in rocks and underground fluids called brines. The mineral is a key component of rechargeable electric batteries that power cars and trucks, which <\/strong>drive 80% of lithium demand<\/strong><\/a>. US officials say that as the world transitions to clean energy in the coming decades, demand for lithium and other \u201ccritical minerals\u201d<\/a> used in electric vehicle batteries will grow by as much as 4,000%. The US must, as a result, become less reliant on foreign sources of lithium and lock in reliable, homegrown sources to ensure economic prosperity and national security.\u00a0<\/p>\n\n\n\n

Who\u2019s Winning and Losing the Race<\/strong><\/h3>\n\n\n\n

Three countries currently <\/strong>dominate global lithium supply and production<\/strong><\/a>\u2014and the US isn\u2019t one of them.<\/p>\n\n\n\n

1. Australia<\/strong> tops the list, producing roughly half of the world\u2019s lithium supply<\/a>. <\/p>\n\n\n\n

2. Chile<\/strong> ranks second, producing a quarter of the global lithium supply<\/a>. <\/p>\n\n\n\n

3. China<\/strong> is third, producing 13% of the world\u2019s lithium supply<\/a>. It controls 60% of the world\u2019s lithium refining capacities<\/strong>. <\/p>\n\n\n\n

The US Ranks at No. 8<\/strong><\/h3>\n\n\n\n

In 1996, the US produced 27% of the world\u2019s lithium supply<\/a>. Today, despite being home to some of the globe\u2019s <\/strong>largest lithium reserves<\/strong><\/a>, there’s just one large-scale US lithium mine that yields less than 2% of the world\u2019s lithium supply<\/strong>. The US is now scrambling to tap the mineral on its own soil as quickly as possible. Efforts in multiple states are underway, including in:<\/p>\n\n\n\n