Lithium’s wild ride

57 snips

Jan 2, 2025

Ernest Scheyder, author of "The War Below" and senior correspondent at Reuters, dives into the tumultuous world of lithium. He explains why the majority of lithium now comes from hard rock sources rather than salt brines. The conversation covers the dramatic price swings of lithium—with skyrocketing values in 2022 followed by a crash—and how this affects the EV market. Scheyder also discusses Chile's nationalization efforts and the challenges surrounding direct lithium extraction technologies, highlighting the geopolitical influences shaping the industry's future.

Ask episode

AI Snips

Chapters

Books

Transcript

Episode notes

INSIGHT

Lithium Sources

Lithium comes from two main sources: brine (salty water) and hard rock.
Brine is extracted via evaporation ponds, while hard rock involves traditional mining.

INSIGHT

Hard Rock vs. Brine Production

Hard rock lithium production currently exceeds brine production due to faster processing times.
Lithium hydroxide is easier to make from hard rock lithium.

INSIGHT

Lithium Chemicals and Use Cases

Lithium carbonate and hydroxide have different use cases depending on battery performance needs.
Lithium hydroxide, better for high-performance batteries, is typically more expensive.

Get the Snipd Podcast app to discover more snips from this episode

Get the app

If you’ve followed global lithium prices over the past few years, you know what a wild ride it’s been. Chinese spot prices shot to record highs in 2022 and then came crashing back down by 2024 — with big consequences for batteries and EVs that depend on the mineral.

So what happened? And what could happen next, especially as EV sales have been slower than expected?

In this episode, Shayle talks to Ernest Scheyder, author of “The War Below: Lithium, Copper, and the Global Battle to Power Our Lives” and senior correspondent at Reuters. They walk through the basics of lithium production and the recent timeline of key events affecting the industry, covering topics like:

Why more of the world’s lithium comes from hard rock spodumene than salt brines
How lithium is not one commodity at one price, but actually a variety of forms of the mineral at different prices
Lithium’s shift from a niche industry serving nuclear and pharmaceutical supply chains to a global force supplying the battery transition
The current oversupply, driven by Chinese producers that operate at a loss, and the western companies that are trying to challenge them
Chile’s efforts to nationalize its lithium industry and shift to direct lithium extraction, which has not worked at commercial scale

Recommended resources

Simon & Schuster: The War Below: Lithium, Copper, and the Global Battle to Power Our Lives

Latitude Media: Are things about to turn around for the U.S. battery sector?

Catalyst: The EV market’s awkward teenage years

Catalyst is brought to you by EnergyHub. EnergyHub helps utilities build next-generation virtual power plants that unlock reliable flexibility at every level of the grid. See how EnergyHub helps unlock the power of flexibility at scale, and deliver more value through cross-DER dispatch with their leading Edge DERMS platform, by visiting energyhub.com.

Catalyst is brought to you by Antenna Group, the public relations and strategic marketing agency of choice for climate and energy leaders. If you're a startup, investor, or global corporation that's looking to tell your climate story, demonstrate your impact, or accelerate your growth, Antenna Group's team of industry insiders is ready to help. Learn more at antennagroup.com.