MINING SITES
“ All Australia ’ s lithium goes to China , where they make batteries and cars ”
RODERICK SMITH , DIRECTOR , BRITISH LITHIUM
of the world ’ s batteries and electric vehicles .”
Such stratospherically high demand presents huge opportunities for the mining sector but also brings colossal challenges , especially in terms of sustainable production and ESG credentials .
Mining by its nature ‘ not sustainable ’ Brian stresses the importance of responsible mining practices : “ Mining by its nature is not sustainable . You ’ re exploiting a finite resource and nothing that develops a natural resource is without environmental impact . Yet it ’ s wrong to see the mining industry or lithium production as incapable of being well-governed , transparent and of low environmental impact .”
The geopolitical landscape of lithium production is shifting . While Australia currently leads global extraction , accounting for over 40 % in 2022 , other regions are seeking to establish themselves in the market .
In the UK , British Lithium is working to extract lithium from Cornwall ’ s granite . Roderick Smith , Director of British Lithium , explains the advantages of
European production : “ Australia is good at mining but not at adding value to natural resources . It ’ s the quarry of the world but it has no car industry . Its lithium is all going to China , where they make batteries and cars .”
British Lithium ’ s Cornwall operation , on the other hand , seeks to serve regional manufacturers , including a new battery factory planned by Tata Motors in Somerset , West England . The company is using innovative extraction methods , as Andrew Smith , CEO of British Lithium , explains : “ The lithium that occurs in Cornwall is unique . We use a physical separation methodology to remove the lithium mica from the rock , make a concentrate , heat it , dissolve it in pure water , change the pH , and refine it into battery-grade lithium carbonate .”
Andrew also flags the environmental benefits of its process : “ The carbon emissions are less than half the best current producing hard rock mine , and water consumption is way ahead of brine extraction .”
Lithium ‘ needs transparent pricing mechanisms ’ As lithium production increases , the need for efficient market mechanisms becomes apparent . The London Metal Exchange WATCH NOW
How the US is investing billions to compete with China ’ s lithium supply chain
64 November 2024