The United States is undergoing a significant transformation in its energy and transportation sectors, driven by the push towards sustainability and the reduction of carbon emissions. Central to this transformation is the role of lithium, a key component in electric vehicle (EV) batteries and charging infrastructure. As the demand for EVs and renewable energy sources grows, so does the need for a robust infrastructure to support these technologies, including efficient EV charging networks.
Lithium-ion batteries are at the heart of the renewable energy industry. They are essential for storing energy generated from renewable sources, such as solar and wind, and for powering electric vehicles. Lithium batteries are light weight and can hold high voltage, making them an efficient, dense form of energy storage.
Global demand for lithium is growing rapidly. In the U.S. alone, the demand for lithium is expected to increase five-fold over the next several years, to around $55 billion annually by 2030.[i] And advancements in battery technology are enhancing energy density, reducing costs, and extending the lifespan of lithium-ion batteries.
The expansion of the EV market requires a robust and widespread charging infrastructure. Among the challenges of achieving the widespread adoption of EVs is the lack of charging stations. Public and private sector efforts are underway to address this deficit. The Biden Administration is focused on increasing domestic mining of critical minerals and plans to install 500,000 public charging stations by 2030.
Auto makers and energy companies are working to build an efficient charging network and companies such as Tesla, ChargePoint, and Electrify America are developing extensive networks of fast-charging stations. As supply catches up with demand, the need for lithium batteries—including newer technologies such as high-capacity lithium-ion batteries and portable lithium batteries—creates exceptional market opportunities.
Up until the 1970s, the U.S. was a major producer of lithium, but as foreign production surged, domestic production waned. Today the top-three lithium producers are Australia, Chile, and China. The U.S. has some of the largest lithium deposits, but less than 1% of the world’s lithium is mined here.[ii]
Ensuring a steady supply of lithium is crucial. Geopolitical factors and market fluctuations affect the availability and price of lithium. Sourcing lithium within the U.S. would significantly impact the ability of manufacturers to ramp up production of EV batteries and infrastructure. The most significant lithium deposits are located in Nevada, California, and North Carolina. Thacker Pass project in Nevada—estimated to contain 179 million tons of lithium ore—has the potential to become one of the largest lithium mines in the world. Other areas include Clayton Valley, Nevada, known for its rich lithium brine resources, and Salton Sea, California, a potential source of lithium from geothermal brines.
In Newry, Maine a very large deposit of spodumene (crystals that contain the lithium) was discovered that has the potential to supply $1.5 billion worth of lithium.[iii] Environmental concerns and the potential impact on the local community are being examined as the state decides whether to allow extraction of the lithium crystals.
The use of lithium as an energy source helps to transition the U.S. away from fossil fuels and towards cleaner energy sources. While the growth of lithium mining in the U.S. presents significant opportunities—job creation, infrastructure development, and manufacturing growth—it also comes with challenges. Mining for lithium can have detrimental effects on local ecosystems and water resources.
Sustainable mining practices and advances in battery technology will help to mitigate environmental impacts and improve efficiency. Ultimately, the transition to electric vehicles and renewable energy sources will reduce the use of fossil and greenhouse gas emissions. The ability to source lithium domestically will help to ensure a continuous supply of lithium, reduce dependency on other countries, and fuel a growing EV market.
The U.S. is well-positioned to become a leader in the EV industry, with significant natural resources and a growing commitment to sustainable energy. Backer Hotwatt partners with industrial users and OEMs to design dynamic heating solutions for the rapidly advancing green energy market. In addition to custom heaters for lithium batteries, we are well versed in hydrogen fuel cell technology—including the development of heaters for heavy duty, fuel cell powered vehicles that operate in extreme cold weather environments.
We can help you solve difficult engineering and performance challenges, custom designing and building the best heater for your EV battery and other green energy applications. Contact an engineer today to set up an exploration consultation. We look forward to helping you soon.
[i] https://www.reuters.com/markets/commodities/global-demand-lithium-batteries-leap-five-fold-by-2030-li-bridge-2023-02-15/
[ii] https://earthobservatory.nasa.gov/images/150730/racing-to-mine-lithium
[iii] https://time.com/6294818/lithium-mining-us-maine/