Demand for lithium, a key element for electrical car batteries, is anticipated to surge, from 500,000 metric tons of lithium carbonate in 2021 to 3 to 4 million metric tons in lower than a decade, in keeping with McKinsey & Firm.
Albemarle, the world’s prime producer of this vital metallic and the operator of mines in Australia, Chile and the U.S., says it plans to deliver one other home lithium mine on-line by 2027 — Kings Mountain in North Carolina. It already operates Silver Peak in Nevada.
Albemarle can also be constructing a $1.3 billion processing facility in South Carolina, the place it’ll course of battery-grade lithium hydroxide. The plant will help the manufacturing of two.4 million electrical automobiles yearly and be capable of course of lithium from recycled batteries.
Regardless of that development, Albemarle faces numerous potential headwinds together with a attainable financial downturn that might sluggish the demand for EVs, new battery chemistries that might scale back the necessity for lithium, battery recycling and extra rivals. Tesla started development of a lithium refinery in Texas in 2023.
To higher perceive how lithium, referred to as “White Gold,” is extracted, the challenges concerned and the place manufacturing is transferring to subsequent, CNBC received a behind-the-scenes take a look at Albemarle’s operations in Chile and the U.S.
Watch the video to be taught extra.