U.S. Lithium Industry Set for Massive Growth

dgfd_AdobeCreativeCloudExpress-1

The US has been slow in transitioning to clean energy due to abundant cheap oil and gas and strong support for the petroleum industry, but the lithium industry is expected to grow.

dgfd_AdobeCreativeCloudExpress-1

The Biden administration is working to become a leader in renewable energy, and recent legislation passed has been recognized as the most ambitious climate bill in US history by the EPA.

dgfd_AdobeCreativeCloudExpress-1

The Build Back Better Act includes $370 billion in subsidies for solar, wind, and electric vehicle production to decrease greenhouse gas emissions by 40% below 2005 levels by 2030.

dgfd_AdobeCreativeCloudExpress-1

Obstacles to growth in the electric vehicle and renewable energy sectors include recruiting enough workers and obtaining lithium.

dgfd_AdobeCreativeCloudExpress-1

To increase production of electric vehicles and renewable energy without relying on China for lithium, it is crucial for the United States to develop more domestic lithium production, as a select few countries dominate the global supply.

dgfd_AdobeCreativeCloudExpress-1

As a result, the federal government is investing heavily in lithium producers to establish lithium supply chains that can keep pace with the rapid growth of the renewable energy sector as outlined in the Inflation Reduction Act.

dgfd_AdobeCreativeCloudExpress-1

Australian lithium company Ioneer received a conditional loan of $700 million from the U.S. Department of Energy to produce enough lithium for 400,000 electric vehicles in Nevada's Rhyolite Ridge Lithium-Boron Project, which is one of many lithium companies announcing new or expanded plants in the United States following the unveiling of the Inflation Reduction Act, including in North Carolina and Tennessee.

dgfd_AdobeCreativeCloudExpress-1

Major EV manufacturers such as Ford and Toyota have already secured offtake agreements with Australian lithium company Ioneer's Rhyolite Ridge plant in Nevada, highlighting concerns about a potential lithium shortage to sustain the growth of EVs and short-term renewable energy storage.

dgfd_AdobeCreativeCloudExpress-1

Anxiety is understandable over the potential exhaustion of lithium resources within fifty years if all gasoline-powered cars were replaced with electric cars overnight, as the global number of electric cars is expected to reach an estimated 125 million by 2030.

dgfd_AdobeCreativeCloudExpress-1

MORE STORIES

dgfd_AdobeCreativeCloudExpress-1