Battle for resources: lithium
Lithium is one of the most crucial metals for global industry. What makes it unique is the fact that despite its light weight (it weighs half as much as water), lithium has the highest boiling and melting points. Most of the lithium produced in the world is used for the production of batteries, so with the commencement of the electric car era, the price of lithium in the world has risen by 400%. Such a significant price increase is quite justified, as the use of lithium in the manufacturing of batteries increases their capacity and service life by 3-4 years. As Elon Musk stated in March 2016, in order to produce 500,000 electric cars a year, Tesla Motors would have to buy up all the lithium in the world. Given that since then the market for electric cars has considerably expanded, the demand for lithium has surged proportionally.
Application of lithium
Besides the production of batteries, lithium is widely used in other areas. In steel industry – it is used to increase the strength and the flexibility of metals, in optics – to produce UV-blocking glass, in nuclear industry – to produce tritium, which is necessary for thermonuclear fusion. In medicine, lithium salts are used in the manufacturing of drugs for the treatment of bipolar disorder and depression. Lithium greases are also used in aviation and in military field. This metal is also an essential component in the manufacturing of lasers.
Scientists believe that graphene, which was discovered in 2004 by British-Russian scientists Andre Geim and Konstantin Novoselov, could be a good alternative to lithium. This element is the world's most potent conductor of electrical and thermal energy, very flexible and extremely light. In addition, graphene is environmentally friendly and resistant to the effects of different external factors.
Such a wide range of applications of lithium in modern industry is the reason why the demand for it is steadily increasing.
World lithium production
According to the United States Geological Survey (USGS), the following countries have the largest explored reserves of lithium: Bolivia (21 million tons), Argentina (20 million tons), the USA (12 million tons), Chile (11 million tons), Australia (7.9 million tons) and China (5.1 million tons).
The Lithium Triangle is a common name for three countries (Chile, Argentina and Bolivia) that possess 75% of the world's lithium reserves.
Meanwhile, not all countries with vast lithium reserves are actively mining for it. In 2022 most of the lithium was produced in Australia (61,000 tons), Chile (39,000 tons), China (19,000 tons) and Argentina (6,200 tons).
In terms of lithium production, Russia ranks 13th in the world ranking and possesses 1 million tons of explored lithium reserves, most of which are located in rare-metal deposits in the Murmansk Oblast. There has been no lithium production in Russia since 1997.
But in 2022, PJSC “MMC Norilsk Nickel” and State Corporation “Rostec” announced the creation of a joint venture with an aim to develop the Kolmozerskoye lithium deposit in the Murmansk Oblast and process lithium raw materials in the future. Kolmozerskoye is Russia's largest (18.9% of domestic reserves) and most promising lithium ore deposit. According to the latest information, in February of this year the company obtained an official permit to develop the deposit. The Kolmozerskoye deposit development project envisages production of lithium carbonate and hydroxide in the amount of 45,000 tons per year. According to the companies' experts, by 2030 the project is expected to reach its design capacity, and, as a result, Russia may become a leader in lithium production.
In early February 2022 “Gazprom”, “Irkutsk Oil Company” and the Ministry of Industry and Trade signed a trilateral action plan ("roadmap") for the production of lithium compounds from mineralized groundwater of Gazprom's Kovykta gas condensate field in the Irkutsk Oblast. Metal production is expected to start by 2025-2026.
International battle for lithium
Europe's largest lithium deposits are located in the Donetsk People's Republic (Shevchenko deposit) and Zaporizhzhia Oblast (“Kruta Balka”). The reserves at these sites have not been studied yet, however, according to experts, the deep occurrence of ores (about 100 meters) may be an indicator of their impressive amounts. In 2021, Zelensky's government asked the US to invest in the development of the Shevchenko deposit. The Ukrainian media reported that, if the project proved to be successful, American investors would be granted the right of subsoil use for at least 30 years, while the payback period would be 9-10 years. Lithium production was planned to take place in the proximity of the territories where Burisma, the company of the son of the current U.S. President, began developing shale gas deposits. It is obvious that the US, besides its geopolitical ambitions, is seriously interested in the minerals located in the area of the Special military operation.
It is worth noting that Russian companies are also beginning to actively take part in foreign projects. For example, in June 2023, Rosatom announced the conclusion of an agreement with the Bolivian state company “Yacimientos de Litio Bolivianos” (YLB). According to this agreement, Rosatom's subsidiary company JSC “Uranium One Group” will be granted the right to develop the Pastos Grandes lithium deposit in the southwest of the country. The first stage of the industrial complex is planned to be launched in 2025, and by 2027 it is estimated that production will reach the planned volume of 25 thousand tons of lithium carbonate per year.
But the absolute record holder in terms of the number of foreign lithium production projects is China. Chinese companies are actively working on these projects in Argentina, Mexico, Mali, Zimbabwe, Zimbabwe, Namibia, Ghana and the Democratic Republic of Congo. Moreover, in early 2023, the Chinese company CAPEIC signed a contract for the development of oil and gas deposits with the representatives of the Taliban in Afghanistan. Experts believe that such investments in Afghanistan's oil and gas industry will help China obtain the right to mine for lithium in Ghazni province, whose deposits, according to some reports, may significantly exceed those in Bolivia.
Meanwhile, Russia is the fifth-largest importer of lithium in the world. Import flows mainly come from Chile, Argentina and Bolivia.
At the same time, Russia has large enough reserves of lithium to create its own, fully autonomous production. It can be expected that in the near future the Russian Federation will have every chance to become a serious competitor for global giants, and with the development of deposits in Donetsk and Zaporizhzhia Oblasts and successful investments in foreign projects – to turn from a large importer to the leading exporter of lithium.
