Lithium Mining: Meeting the demands for a greener world

Lithium, an element residing in the alkali metal group, serves as a mineral of prominence in the realm of modern energy storage and clean energy. Its chemical prowess, marked by high electro-chemical potential, makes it a suitable component in rechargeable batteries, propelling technological innovation and sustainability.

• History of Lithium
• Use Cases of Lithium Mineral
• The Demand for Lithium Worldwide
• Extraction of lithium Mineral
• Lithium: Ghana’s new found white Gold
• Global Market Price for Lithium

The increased demand for lithium can be traced to the rising wave for the adoption of electric vehicles and use of cleaner energy. Lithium-ion batteries stand at the forefront, serving as the catalyst for clean energy solutions globally.

History of Lithium

Lithium's discovery is rooted in scientific curiosity. In 1817, Johan August Arfwedson identified this exceptional metal while analyzing minerals. Over time, lithium found applications in psychiatric medications, and it wasn't until the late 20th century that the lithium-ion battery sparked a revolution in energy storage.

Use Cases of Lithium Mineral

#1 Batteries: Apart from it usage in phone batteries, Lithium-ion batteries fuel the surge in electric vehicles and act as reservoirs for renewable energy, paving the way for a greener and more sustainable future.

#2 Medicine: Lithium plays a crucial role in psychiatric medications, stabilizing mood and offering therapeutic benefits in mental health treatment.

#3 Ceramics: In the field of ceramics, lithium enhances durability and heat resistance, contributing to the production of robust materials.

#4 Lubricating greases:Lithium hydroxide being a strong base, when heated with a fat, produces a soap made of lithium stearate.

#5 Metallurgy:Lithium (e.g. as lithium carbonate) is used as an additive to continuous casting mould flux, it increases fluidity, this use accounts for 5% of global lithium.

#6 Air purification:Lithium chloride and lithium bromide are hygroscopic and are used as desiccants for gas streams. Lithium hydroxide and lithium peroxide are the salts most used in confined areas, such as aboard spacecraft and submarines, for carbon dioxide removal and air purification.

The Demand for Lithium Worldwide

The increasing demand for lithium is as a result of the rising wave of electric vehicles and the expanding renewable energy sector. Lithium-ion batteries stand at the forefront, serving as the catalyst for clean energy solutions globally.

Can the Increased Demand for Lithium Keep Up with Supply?

The increased demand for lithium presents a challenge. While demand soars, efforts in exploration, technological advancements, and sustainable mining practices are underway to bridge the supply-demand gap.

List of Top Producing Lithium Countries and Their Reserves:

1. Australia, Argentina, Chile and China accounted for the majority of world lithium production

Source: US, GEOGRAPHICAL SURVEY, MINERAL COMMODITY SUMMARIES

Countries with identified Lithium Resources

Extraction of lithium Mineral

Commercial lithium arises from two major sources: underground brine deposits and mineral ore deposits, which have faced environmental criticism. From water scarcity concerns to habitat disruption and chemical releases, the environmental toll of lithium mining is a pressing issue.

Alternative emerging technologies such as Direct Lithium Extraction (DLE) is a proven technology and environmental safer than the traditional methods. with this, Brine is extracted from the basin aquifer and pumped to a processing unit where a resin or adsorption material is used to extract only lithium, while spent brine is re-injected into the basin aquifers with no aquifer depletion or harm to the environment.

This could help mitigate land disruption, conserve water and reduce the negative environmental impact thus making it ESG(Environmental, Social, Governance) friendly

Lithium: Ghana’s new found white Gold

The government of Ghana has approved its first lithium mine for Barari DV Ghana Limited, operated by Australia-based company Atlantic Lithium Limited by granting a 15-year lease at Ewoyaa mine in the Mfantseman Municipality of the Central Region after completing feasibility and exploration works which began six years ago.

However, there are other parts of Ghana where exploratory works and feasibility studies are being conducted for lithium deposits.

As part of the arrangement, a lithium processing plant will be established to process the mineral before shipping. This leased is expected to generate 10% royalties to the state, as well as include state interest amounting to 13%.

In addition to the carried interest, the state, through the Minerals Income Investment Fund (MIIF), will acquire another 6% stake in the operations and another 3.06% in the Company’s parent entity listed on the Australian and London Stocks Exchange. As a requirement, Barari DV Ghana will also be listed on the Ghana Stock Exchange to ensure Ghanaian participation in investment.

What's the Global Market Price for Lithium?

The global market price for lithium is complex, fluctuates and can be expressed in various ways based on supply and demand dynamics, hence there is no single definitive answer. The type of lithium and product influences the market price.

Lithium Pricing

• Battery-grade lithium carbonate (LCE): This is the most commonly traded form of lithium used in electric vehicle batteries. As of today, December 20, 2023, the benchmark price for LCE in China (which heavily influences global prices) is approximately ¥97,500 per tonne.
• Other lithium compounds: Prices for other forms of lithium, like lithium hydroxide or lithium spodumene, will vary depending on their specific form and quality.
• Spot vs. Contract prices: The spot price reflects the immediate market price for LCE, while contract prices are negotiated between buyers and sellers for longer-term commitments.

Conclusion

Embarking on this exploration of lithium mining unveils a crucial chapter in the narrative of clean energy and technological advancement. Lithium, with its rich history and diverse applications, stands as a beacon in the global pursuit of sustainable energy solutions. As the demand for lithium continues to rise, the industry faces challenges that require innovative solutions and a commitment to responsible mining practices. As stewards of this critical resource, we navigate a path toward a future where lithium contributes to a cleaner, more sustainable world.