The current generation of battery technology requires lithium, so as electric vehicle sales constantly increase and more renewable energy comes online - requiring storage - demand is only set to increase.
In 2020, the European Union added lithium to its list of critical raw materials, which is reserved for materials that are either essential to EU policy goals or which face supply shortages. In lithium’s case, it was the first criteria that secured its inclusion.
Brussels has big plans to snag a chunk of the global battery-production market, by increasing both manufacturing of the final product and the mining and refining of raw materials.
The likes of France and Germany have started to stump up billions of euros to build gigafactories as demand for vehicles in particular increases, while further efforts are underway to ramp up recycling and the reclamation of battery parts.
But lithium may soon face hurdles similar to those that materials like cobalt...