With a global push towards a cleaner environment and greener power, lithium has never been a more popular resource. With its main role in re-chargeable Lithium-Ion batteries, the global demand for the resource has skyrocketed. Sitting at a demand of 540,000 tonnes in 2021, lithium is now expected to reach a demand of 1.5 million tonnes in 2025. Despite its necessity as a pillar for green energy, its impact can be damaging both to the environment and the local population. This has led to tensions between mining companies, green energy advocates, governments, and local people, with the push towards net-zero and away from fossil fuels coming into conflict with the often-negative sentiment towards lithium mining. With production set to continue to spike, this tension is likely to get worse, potentially leading to greater unrest.
Figure one: Historical anti-lithium mining sentiment throughout the world
It’s crucial to first understand where the lithium itself is being mined. The primary producer of lithium is Australia, extracting 61,000 tonnes or 46% of the global share in 2022. The primary method for this was through hard rock expansion, primarily the mineral spodumene. This method is done predominantly by Australia, as others use brine extraction. Secondly, Chile produced 39,000 tonnes or 30% in the same year. The method of extracting the lithium differs from Australia as they drill into the earth to create evacuation pools, allowing the water to evaporate at the surface. From this, a salt of potassium, manganese, borax and lithium are exposed, where they are then filtered and left to evaporate again. Thirdly, China produced 19,000 tonnes of lithium or 15.6% in the same time frame. This is partially due to lithium mining within China’s borders, but also through the strategic purchase of lithium mines in Chile, Canada, Australia and elsewhere, for a sale worth USD$5.6 billion. In addition to China’s sizeable purchase of lithium mines, they also hold 60% of all the world’s lithium refining capacity for batteries, making them a crucial part of the lithium supply chain.
Although the top producers have sizeable shares, the largest quantity of lithium in the world is in an area dubbed the ‘Lithium Triangle’, where a large salt plateau encompassed by Chile, Argentina and Bolivia holds over 75% of the world’s lithium supply. It’s here where the extraction method of drilling and evaporation is mostly used, due to the harsh weather and dryness of the region. By performing this method of extraction, it deeply affects the local area, with 500,000 litres of water required to extract one tonne of lithium. The water consumption involved in this method of exploitation has, as can be expected, had negative effects on the local population. In the region of Salar de Atacama it is believed that 65% of the water has been extracted. Not only is the water shortage in one of the driest parts of the world affecting crop growth and yield, but the contaminants released through this form of extraction have serious consequences for the wildlife. Alternative forms of extraction are also damaging, such as hard rock mining. Hard rock mining, predominantly done in North America and Australia, grants greater flexibility as it can be processed into lithium hydroxide or lithium carbonate. In addition to this, it also allows for a faster processing and a higher quality. The downside of this method is its carbon footprint, where one tonne of lithium produces 15 tonnes of CO2 into the atmosphere.
Figure two: Anti-lithium mining sentiment in the ’Lithium Triangle’
The effects of lithium mining have, in many cases, resulting in local residents acting against it. Famously, this situation occurred in Tagong, China, where in May 2016 protesters threw dead fish, killed by a toxic chemical leak from the Ganzizhou Rongda lithium mine, onto the streets. More recently, these protests have occurred in the form of blockades around mines, particularly by indigenous people being affected by them. This can be seen around Atacama Salt flats and Jujuy province of Argentina.
Figure three: Pro and anti-lithium mining incidents in Serbia
In addition to major Lithium producing areas such as Australia, China and South America, smaller lithium producing countries also experience political instability and unrest due to lithium mining. This is seen in Serbia where there have been multiple protests surrounding the construction of a Rio Tinto lithium mine in the Jadar Valley. Protesters have sought to directly lobby the Rio Tinto company itself, but have also added a political element to their protest via a proposed ban on lithium and boron mining that was voted against in Serbian Parliament on October 10th, 2024. Protests are also being seen outside of the country, such as the October 15th demonstration in Spreebogenpark, Berlin, supporting the demonstrators in their activism against the opening of the lithium mine.
Figure four: Serbian Parliament’s decision to reject the ban on lithium mining
With the nature of lithium mining being scrutinized, many have looked for alternatives. The most apparent of these would be the recycling of current lithium batteries in circulation. This leads to another series of problems as it is estimated that only 5% of all lithium-ion batteries can even be recycled. This is due to the way that the lithium cathodes degrade over time. In fact, it is believed that the recycling of a lithium-ion battery actually requires more energy and resources than to create a new battery all together, and in that, a larger negative environmental footprint. Another alternative would be to use Sodium-Ion batteries; however, this too has its limitations. Although sodium is more plentiful and therefore cost effective, they struggle in terms of their efficiency and weight. As such, a large, heavy number of Sodium-Ion batteries would be required to perform the task. Despite this, their practicality in larger quantities is hard to ignore. In the use of grid storage, industrial application or backup power systems, all of which would require a large quantity of expensive Lithium-Ion batteries, Sodium-Ion batteries could be used as an alternative. This would reduce demand for lithium and would allow Lithium-Ion batteries to perform lightweight tasks such as portable electronics and batteries that require long-life cycles. China has even been experimenting with a lightweight Sodium-Ion battery for electric vehicles too with the company CATL, showing success.
Lithium mining is heavily scrutinized due to its status as a pillar of green energy as countries across the world reckon with the impact of climate change. As production ramps up to meet rising demand, the likelihood of protesters demonstrating against its ecological impact and its impact on local populations will also increase, while producers will have to reckon with reputational and legislative risks throughout their supply chains. Despite this, demand continues to increase, with the value of the lithium-ion battery expected to reach USD$194 billion in 2030. Navigating negative sentiment while meeting this demand will be crucial. As demand grows, so too will supply, and with that the risk of disruption as activists attempt to prevent or interrupt the status of the mines.
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