Excerpt from cnbctv18.com
Lithium is one of the most expensive metals in the world. The lightest metal in the universe is a critical component of the ubiquitous lithium-ion batteries. These batteries are found everywhere, from mobile appliances to smartphones and even in electric vehicles. It is estimated that the demand for lithium is going to grow exponentially in the next few years as the world increases the rate of adoption of electric mobility.
According to S&P Global Market Intelligence, the demand for lithium will increase to 6,41,000 tonnes in 2022 from an estimated 5,04,000 tonnes in 2021, reported Bloomberg NEF. At the same time, supply will be only increasing to 6,36,000 tonnes.
But the process of extracting lithium is environmentally fraught. Usually mined from salt flats or quarries, lithium mining can lead to water pollution, air pollution, soil erosion and excessive water consumption.