What Is the White Gold of the Fourth Industrial Revolution?

From the smartphones we hold in our hands to laptops, fitness smartwatches, and even the growingly popular electric cars, all these seem to rely on a material in their batteries called lithium. But what is this lithium-this recently discovered material which some experts have dubbed "white gold"?

What is lithium?

Lithium, a chemical element with the atomic number 3 and symbol Li, is one of the significant elements in the periodic table, and lately it has gained significant attention in the previous decades due to the various properties it carries. In the year 1817, a Swedish chemist known as Johan August Arfwedson discovered it when studying the mineral called petalite.

Lithium is an alkali metal forming part of the first group in the periodic table of elements. This metal is the smallest which can be found in solid state at atmospheric pressure. A soft metal that oxidizes very fast with water and air; it happens in nature only in the form of salts. If it is found pure, then it is silvery metal and is soft enough to be easily cut by a knife. Lithium It is vastly used in batteries due to its light weight as well as high conductivity.

In search of lithium

In 2020 the EU labeled lithium as a "critical raw material," since it is crucial to manufacture batteries that are in need of conducting energy. Being one of the important materials for the world energy future, Lithium becomes a strategic material in the world, while different countries try to respond to the growing needs of the industry by investing in mining and production of lithium.

With a view to further reductions in greenhouse gas emissions, ambitious plans for electric battery production are foreseen in the EU by 2030, yet such ambition is seriously handicapped by the lack of raw materials. Consequently, countries and big industrial companies are searching for new and sustainable sources of lithium extraction.

Why has lithium become so crucial for the battery industry?

Most battery electrodes contain lithium, a highly electrochemical capacity element. Lithium batteries have become quite popular in embedded systems because of their high energy density on mass and volume basis. Normally, a lithium battery can store 3 to 4 times more energy than any other kind of battery.

Other uses include small electronic device batteries, such as mobile phones or rechargeable batteries.

Over the last decade, the consumption of this metal increased by over 20% due to its application in the battery of electronic devices like smartphones. That is why it is so strategic to countries, especially for battery manufacturers and electric car gigafactories.

The European Union does have several plans with regard to electric battery factories with a view to replacing thermal cars by 2035 in order to cut its greenhouse gas emissions.

Precisely, according to French Professor of Raw Materials Economics Yves Zegurel, with the ambition of carbon neutrality by 2050, demand might increase as much as 40 folds. It is what has made lithium be recognized as one of the mineral resources at the highest rate of consumption growth in the world.

How much does it cost?

According to MinéralInfo, the French portal for non-energy mineral resources, 58% of lithium was used for batteries in 2018, against 20% in 2008. Its total consumption worldwide went from 21,000 tons in 2008 to nearly 51,000 tons in 2018, an increase of 142% in one decade.

As demand went up, so did the price of lithium on world markets. In 2020, the price of a ton of lithium reached about 5,500 euros, while at the end of 2022, it had shot up to 80,000 euros. The price increase is indicative of the strategic importance that this material assumes in worldwide industry. The value of lithium is just a small percentage-around 1 to 2%-of the final price of a battery for electric vehicles.

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