dexterbland

Lithium Batteries: Nothing But Illusion

To reach higher levels of lithium production requires investment - that is all. There is no shortage of sources of lithium, just that as yet the demand has failed to materialize (in fact there is currently excess capacity). Should that demand occur in sufficient volume as to lead to price rises then there a multitude of new sources that can be brought on-line. AS you say the Salar de Uyuni is (at current prices) unlikely to be viable, at higher prices it would be. As would lower grade spodumenes and hectorite clays from Canada and Australia, low grade brines (including from the US), geothermal brines, even potentially seawater. Not only that but the existing (and vast) known reserves of the Salars can be pumped at a much higher rate - and yes mechanical evaporation is feasible - at the right price. Currently we are exploiting only the highest grade tip of the iceberg because that's all that we need to do to meet present demand.

The key is price and lets not forget that lithium was once produced exclusively from spodumene at much higher price. There is plenty of room to raise prices without effecting the economics of batteries . Raw lithium carbonate currently accounts for 1% of the cost of the battery. So, should they get the right price signal - all the junior explorers warming up on the sidelines will be ready to jump. They are waiting for the moment that they can convince investors that their projects are feasible.