The Korea Herald reports a Korean consortium forged an agreement with Bolivia’s state-run miner Comibol over the weekend to manufacture lithium-ion battery parts, boosting Korea’s bid to tap the largest lithium deposits in the world.
A research project involving extracting lithium will begin next month at Bolivia’s Salar de Uyuni – an 11,000 square kilometers salt flat (pictured) – with plans for constructing lithium-carbonate processing facilities. The soft, silver-white metal is widely used in rechargeable batteries for mobile phones, laptops and electric cars and the price has been steadily increasing prompting talk of a Opec-style cartel to control production and prices among South American nations that together control 85% of the world’s resources.
According to the January 2011 update by the US Geological Survey lithium resources total 9 million tonnes in Bolivia and in excess of 7.5 million tons in Chile, the two top countries. Identified lithium resources for China, US and Argentina total 5.4 million, 4 million tonnes and 2.6 million tonnes respectively, while Brazil, Congo, and Serbia each contain approximately 1 million tons.
According to the Korea Herald, Korea imports all of its lithium needs, which nearly doubled to 11,000 tons last year compared with 5,200 tons in 2008. Prices reached $4,752 per ton as of July 28, up $200 compared with last month and almost 100 percent from 2003, government data show.
MINING.com reported in July Argentina is promoting the idea of an OPEC-like cartel for itself, Bolivia and Chile – which together control 85% of the world’s reserves of lithium – to manage prices and limit overproduction.
Analysts are warning that lithium poses the same supply and demand problems for the electric car market as oil does for the internal combustion engine. According to Argonne, a research company, in 2009, worldwide lithium production reached 120,000 tons. If electric cars achieve a 5% penetration rate by 2020, an additional 60,000 tons of lithium will be needed to fill the demand. However, new production coming on stream should fill demand and recycling would reduce the need for virgin materials.
