Scaling the Lithium Supply Chain: The Key to EV Battery Innovation and Collaboration
“Collaboration is the magic sauce,” Norris said. “This is how we all have to operate. That’s the call to action.”
Innovation and Collaboration for Scaling the Lithium Supply Chain
DETROIT — Eric Norris, president of the lithium business unit at Albemarle Corp., emphasizes the importance of innovation and collaboration in scaling the lithium supply chain in North America. Albemarle, a leading global lithium producer, anticipates a more than double increase in lithium demand worldwide from 2025 to 2030, with the majority of sales being for batteries. Norris highlights the transformative impact of this shift and the potential for lithium to play a greater role in various parts of EV battery cells, including the anode, to boost range and energy density.
Challenges in Expanding Lithium Use and Permit Approval
While the lithium industry explores new opportunities, Nathan Niese, global lead for EVs and energy storage at Boston Consulting Group, points out the challenges of slow permit approval for lithium mines. The process of opening a new mine can take over a decade, which doesn’t align with the Biden administration’s goal of achieving 50% zero-emission vehicle sales by 2030. Meeting the growing demand for EVs will require over 300 new mines globally for lithium, graphite, nickel, and cobalt by 2035.
Localization of the Lithium Supply Chain in North America
Albemarle expects North America to account for 20% of global lithium demand by 2030, leading to increased local production. Battery cell manufacturers and automakers are investing billions to localize the EV supply chain. Albemarle, utilizing the Inflation Reduction Act, has expanded its business in the U.S. to take advantage of lithium resources in North America, including a new mine in Kings Mountain, N.C. However, the processing of battery materials in North America lags behind, with most processing currently done in China.
Collaboration and Community Engagement for Successful Lithium Extraction
Norris emphasizes the importance of collaboration with industry and local communities for scaling lithium extraction in North America. Albemarle consults with communities and seeks their support before applying for permits or developing mine plans. Norris believes that innovation, from mine to manufacturing to market, can only be achieved through collaboration and engagement with the communities in which companies operate.
