New Delhi
The shift to renewables is happening at a record pace and Lithium is at the core of this shift. The way the lithium industry is developing looks very similar to the beginning of the oil boom.
Lithium involves complicated extraction, just like oil. Lithium is shaping geopolitics, just like oil. It will be driving cars, just like oil.
So is this metal poised to be the new oil? And will it end the world's dependence on oil?
Lithium was discovered in 1817...By Swedish chemist Johann Arfvedson. The most important use of Lithium today is in rechargeable batteries for electronics and even electric vehicles. Lithium is also used in non-rechargeable batteries for heart pacemakers, clocks and even toys.
Lithium Oxide is used in special glasses. Lithium Stearate is used as a temperature lubricant. Lithium Hydride is used as fuel and Lithium Chloride is used in drugs to treat depression.
Over 50 per cent of the world's Lithium reserves are found in the 'Lithium Triangle' of South America.
1/3rd of the reserves in this triangle are in Bolivia, close to 21 million tonnes. Argentina has the world's second-largest reserves at 17 million tonnes. Chile comes third with 9 million tonnes.
Three other countries too have considerable amounts of Lithium. US has 6.8 million tonnes. Australia has 6.3 million tonnes. And China has 4.5 million tonnes.
Fossil fuel demand will diminish as years go by and so will the demand. The solution to this situation is battery driven and for now, batteries need Lithium.
Apple, is planning an electric self-driving car that will run on Lithium-Ion Phosphate batteries. China's Baidu is developing similar cars that too will run on similar batteries.
Most recent estimates say that the demand for Lithium will hit 1.3 million tonnes in this decade, this is 5 times the current demand.
Lithium-rich nations are expected to reap a bounty.
In 2018, Chile earned a revenue of nearly 1 billion dollars only by selling Lithium. In 2021 the figure is set to increase.
Lithium is indeed a new oil and the countries where it is found have the potential to create a body similar to Organisation of Petroleum Exporting Countries (OPEC).