Critical for a green future

Countries and companies around the world are scrambling to secure supplies of the metal that is fuelling the energy revolution

- MAX RIAZ

As the world seeks to reduce its carbon footprint and mitigate the impacts of climate change, the demand for renewable A energy sources and electric vehicles has skyrocketed.

At the heart of this transition lies lithium, a soft, silvery-white metal that is essential for the production of lithium-ion batteries, which power everything from smartphones to electric cars.

The transition to clean energy and transportation is essential for reducing greenhouse gas emissions and mitigating the impacts of climate change. Lithiumion batteries are a key component of this transition.

First, vehicles can use the stored energy in lithium batteries to operate instead of burning petrol that causes CO2 emissions. Secondly, the stored energy in the lithium batteries themselves has to come from somewhere, and that somewhere can be solar panels installed on your roof top to recharge your electric vehicle or household battery.

In future, there will also be grid-level, large lithium batteries installed next to solar and wind farms that charge these batteries to supply renewable energy to the electricity grid at night. The chart (page 69) from the Australian government's latest budget papers speaks for itself. The purple and black bars show that both solar energy and lithium battery storage in Australia are set to grow significantly in the years ahead. Moreover, it is safe to infer similar growth for other major economies.

The International Energy Agency estimates that electric vehicles could save up to 1.5 million barrels of oil per day by 2030, while renewable energy sources could provide up to 70% of the world's electricity by 2050. These figures demonstrate the potential for lithium-ion batteries to play a crucial role in reducing greenhouse gas emissions.

Global race intensifies