Lithium Resources Ample for the Next Big Thing.

April 9, 2008 – Vol.13 No. 3

LITHIUM RESOURCES AMPLE FOR THE NEXT BIG THING.

The US economy goes from one big thing to the next, often punctuated by presidential elections. Terrorism, high energy prices, a war for oil and awareness of global warming have highlighted the current administration’s term. The next administration, regardless of party affiliation, will be focused on those issues while it deals with a slow economy.

Often, the direction the world’s largest economy goes is followed by much of the rest of the world: “Follow the money” as the quip says.

The rest of the world, as with the US, likes its gadgets. Gadgets provide instant gratification from the point of purchase onwards. If there was an iPod for energy - an iEnergy - a handheld device holding enough green power to energize a car or a house - it would fly off the shelves, well, like iPods.

There isn’t of course and won’t be any time soon.

But brewing out there are gadgets that could become the next big things that will help pull the US, and the world, out of its rut: pure electric and plug-in hybrid electric vehicles.

Purchased like electronic gadgets, cars and trucks provide the same kind of instant gratification. But unlike personal electronics clean and highly efficient cars and trucks can help tackle at least three of the above mentioned highlights of the past 7 1/2 years: high energy prices, a war for oil, awareness of global warming.

Like most portable electronic gadgets nowadays these vehicular gadgets will have a lithium battery under the hood. As the lightest solid element, and by the luck of nature able to be used for battery making, lithium is the only game in town in which to make light, powerful energy storage devices needed for electric and plug-in hybrid vehicles.

While the cost of lithium batteries is still high, at least to one expert there are fewer supply constraints to lithium than once thought, including by the person typing in these words. There are abundant global supplies of lithium. Large lithium resources along with improvements in manufacturing processes and the availability of large format batteries, should help bring the cost of lithium batteries for vehicles down to affordable levels.

As lithium expert Keith Evans notes in his report – Lithium Abundance - World Lithium Reserve, “Concerns regarding lithium availability for hybrid or electric vehicle batteries or other foreseeable applications are unfounded.”

The report was prepared by Evans because of the potential and growing demand for lithium batteries for electric and plug-in hybrid electric vehicles.

Evans notes in the Reserve and Resource Summary that “The report lists a total of 28.5 million tons of lithium, equivalent to nearly 150.0 million tons of lithium carbonate – equal to 1775 years of supply at the current rate of demand (approximately 16,000 tpa (tons per annum) Li). Demand, of course, would be substantially higher with a large-scale adoption of electric vehicles and plug-in hybrids.

The report discusses lithium resources in the US, Canada, Zimbabwe, Zaire, Australia, Europe, Russia, Brazil, Bolivia, Argentina, Chile, and China.

Geologist Keith Evans became involved in the lithium business in the early 1970’s at Selection Trust Ltd. where he evaluated the future potential of Bikita Minerals in what, at that time, was Southern Rhodesia (now Zimbabwe). He later joined the Lithium Corporation of America, then moved to Amax Exploration. Amax was acquired by Sociedad Quimica y Minera (SQM) of Chile, now the world’s largest lithium chemicals producer.

Throughout his career in the lithium industry Evan’s responsibility was to monitor industry developments particularly in respect of new resources and he has continued as a consultant in a number of industrial minerals.

Electric vehicles and plug-in hybrids may not be the only next big thing. But, because of the appreciation of energy storage devices that make these vehicles possible there could be a spill over effect into other technologies. Solar energy is dramatically improving and growing, as is wind energy. Both need energy storage devices to be fully utilized. A boom in lithium batteries could lead to a boom in other energy storage technologies and carriers of energy including hydrogen.

The current administration seems fully aware of the economic potential of this “next big thing.” Unfortunately they’ve caught on about 7 years too late.

Links:

Lithium Abundance - World Lithium Reserve
A report on the world's Lithium resources and reserves
by R. Keith Evans.

http://lithiumabundance.blogspot.com

Lithium: The Pinnacle of Battery Technology?

Tibet’s Lithium