The next big gold rush is for a material that is considered one of the more easy to obtain elements. So then why is there a rush by nations worldwide to stockpile as much Lithium as possible?
(Source: Engineering Explained via YouTube)
The answer is Batteries. There is growing need for batteries and battery power devices. Hybrid cars, Cellphones, Tablets and more recently, smart watches all require batteries. Nevada is home to the only operating lithium mine in the U.S., which likely played a part, however small, in Tesla Motors Inc.’s decision to locate its much-talked-about battery factory in the state.
The U.S. still imports most of its lithium, with Australia, Bolivia, and Chile among the top exporters of the mineral. But one Nevada mine has been churning out the stuff since the 1960s, and other lithium deposits in the state could come in line depending on demand.
(Source: Unknown)
According to Carl Nesbitt, an associate professor of metallurgy at the University of Nevada, U.S.
“Tesla is likely to be ‘a very large consumer’ of lithium, and will likely need to find new sources of the metal. From a purely technical standpoint, it would make sense for Tesla to be near a lithium source such as the mine in Silver Lake, Nevada The mine is about 250 miles southeast of Reno, near Tonopah, Nevada. Most lithium is refined in China, which ships the resulting lithium carbonate to all the corners of the world.Tesla will likely stick with China as its main source of refined lithium, at least for the time being. After a considerable investment and depending on volume, some of the lithium could be processed in the U.S.”
However according to detractors in the commodity market, such as Brian Jaskula, a commodity specialist with the U.S. Geological Survey, Lithium ‘plentiful’ in the world.
“Lithium costs about AED 24,026.66 per metric ton, or AED 10.9 a pound. Prices have been stable after a dip in 2009, when lithium and all commodities suffered the effects of the Great Recession.There’s no public market for lithium, and transactions are hammered between private sellers and buyers. Prices can vary quite a bit depending on the length of contracts and location to be shipped. The world is unlikely to run out of lithium, It’s quite plentiful. (miners and refiners) right now have a lot of extra capacity they are not using.”
New sources are coming in line in Canada and Argentina, to name a few, in anticipation of higher demand with electric car batteries. “Current demand can easily be met,” he added.
(Source: ProvinceofBC via YouTube)
However the Canadians aren’t taking any chances. Funding of the British Columbia Budget 2015 (Canada) will establish a Major Mines Permitting Office to improve the co-ordination of major mine permits across government, add staff to conduct more inspections and permit reviews, and maintain improved turnaround times for notice of work permits. Government has used contingency funding since 2011 to significantly increase geotechnical staff and inspections and improve permit turnaround times.
“Up to 10 new mines are expected to proceed in the next few years and this new funding will make sure we are ready to support these projects and ensure the safety of this important industry as it continues to grow,” said Premier Christy Clark. “B.C.’s mineral exploration and mining industry is a great comeback story and today we have a significant opportunity to create thousands of jobs by opening new mines and expanding existing ones.”
Premier Christy Clark at the announcement on Monday, January 26, 2015 at Vancouver, Canada
The Canadian government has used contingency funding since 2011 to significantly increase geotechnical staff and inspections and improve permit turnaround times. The funding announced will make these improvements permanent and create additional capacity to support the major mines permitting process.
The base budget of the ministry will be increased by about AED 22.18 million, a portion of which will go towards making current contingency funding permanent. Also, new permit fees for mines in B.C. (British Columbia, Canada) are expected to raise an additional AED 11.09 million per year. The new fees will not be charged to exploration companies.
The Lithium wars are just beginning. Aggressive development in battery technology is only catalyzing the growth in the demand of Lithium. It will be only a matter of time before more players step in to fill the void, resulting in an OPEC like price regulation or possible trade sanctions. The rush for Lithium is the new ‘Gold Rush.’