lithium
Lithium

Key to Digitization and Electromobility

Lithium - one of the most important raw materials in our digital and mobile age. Most of the mobile devices that are important to us today would be unthinkable without lithium: smartphones, tablets and laptops, cordless screwdrivers and other handy tools , electric cars and hybrid cars, e-bikes and electric scooters. A single lithium battery - for example a CATL battery - for an electric car requires 10 to 20 kg of lithium, for some battery models up to 50 kg. Between 2016 and 2019 alone, annual global lithium consumption has already doubled.

The demand for lithium is enormous, but it is difficult to obtain. Currently, about two thirds of the lithium produced in the world comes from mining, one third is extracted in so-called lithium brines. With lithium brines are huge salt lakes in which lithium occurs naturally.

Lithium: coveted but rare and extremely reactive

Because lithium is extremely reactive, it does not occur in elemental form in either resource, but mostly as lithium carbonate in mining and mostly as lithium chloride in brines. Elemental lithium ignites at room temperature and reacts to form lithium oxide It is also highly corrosive to humans, as normal skin moisture is sufficient for it to react to form lithium hydroxide, generating intense heat. Attempting to extinguish a lithium fire with water or other common means will only generate more heat and intensify the damage. Lithium fires can only be extinguished with salt or inert gases.

These facts show that the production and trading of the coveted lithium comes with considerable hurdles for newcomers, but also for experienced industry experts - technically, organizationally and economically. Mining is an extremely capital-intensive undertaking - In addition, the lithium reserves in mining, like so many other raw material reserves, are slowly running out. It is estimated that around 17 million tons of lithium are still available in mines worldwide of work and private life, as well as the switch to electromobility that is just beginning, these will soon be exhausted.

lithium

Lithium: Promotion

The extraction of lithium from mining involves some uncertainties. The exploration phase will require diamond drill testing. The geographical characteristics of regions with rock deposits of lithium are extremely variable: some are densely populated or particularly vulnerable from a biodiversity point of view. This can be politically challenging and often make projects completely impossible. Taking samples from salt lakes, on the other hand, is much less invasive, faster and cheaper.

lithium

The development towards an economically usable stage is possible for Solen with significantly less time and capital expenditure and is politically and bureaucratically leaner.

lithium

Lithium Market

Conventional lithium stocks have already risen sharply when Elon Musk recently dubbed lithium a „license to print money“ and „the new oil.“ The Tesla boss and pioneer of the energy transition emphasized that in geopolitically uncertain times lithium is essential to ensure energy independence. In private conversations, he had already warned the EU Commission that the EU and the USA would become increasingly dependent on China when it came to lithium. China also has significant lithium deposits in salt lakes - but not comparable to the salt lakes of South America, which contain an estimated 70% of the world's deposits.

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ELON MUSK

BUSINESS MAGNAT AND INVESTOR

Lithium is license to print money.