Lithium News

Tesla is considering building a lithium refinery in Texas as it continues trying to localise and secure the supply of critical components and materials. If the application just filed is successful, construction could begin this year. Yet, that depends.

Tesla touted the potential battery-grade lithium hydroxide refining facility as the first of its kind in North America. It will process “raw ore material into a usable state for battery production”, the company said in an application filed with the Texas Comptroller’s Office.

If approved, construction could begin in Q4 of this year with commercial production targeted by the end of 2024.

Then, Tesla will ship the final product from the refinery by trucks and rail to various Tesla battery manufacturing sites.

However, the possible refinery in Texas will probably not be built directly next to Giga Texas in Austin. The planned location is Robstown near Corpus Christi on the Gulf coast because Tesla expects to the receive lithium ore by ship before processing it into battery-grade lithium hydroxide. The site could also refine other materials in future. In addition, Tesla mentions “innovative processes” requiring fewer hazardous substances on the one hand and producing more usable by-products on the other, compared to “conventional processes”.

According to the application, Tesla is ready to invest 365 million dollars (€359 m) this year if the decision is made in favour of Robstown.

However, the decision to invest in Texas will also depend on whether the state will offer tax relief, Tesla said in the news published by Reuters.

As alternatives, Tesla is also considering Louisiana. To increase the pressure, the company said that, in principle, any site with access to the Gulf Coast would be suitable.

Tesla set localisation of supply on the map for some time

Tesla has entertained plans of going deeper into lithium mining for some time. The carmaker on the Battery Day event in 2020 said they were buying lithium claims on 10,000 acres in Nevada – yet this never materialised.

Instead, CEO Elon Musk appears to be looking to encourage others to take up the shovel. During the last earnings call, the Tesla boss said it was a license to print money.

“So it is basically like minting money right now. There’s like software margins in lithium processing right now. So I would like to encourage, once again, entrepreneurs to enter the lithium refining business. You can’t lose. It’s a license to print money.”

Tesla buys lithium for its batteries directly from mines. In spring 2022, the company reportedly signed two significant contracts with Australian mining operators; specifically, the lithium-spodumene concentrate comes from Core and Liontown Resources. In addition, Tesla purchases lithium hydroxide from Ganfeng. As reported, a contract with Piedmont Lithium in the US is still on hold.

Meanwhile, leadership is changing at the Tesla Gigafactory in Nevada. According to CNBC, the previous head of the factory, Chris Lister, left the company in the summer. His successor is Hrushikesh Sagar, who, in addition to the Gigafactory in Nevada, will also head Tesla’s car plant in Fremont, California.

A research team at the Korea Institute of Science and Technology has succeeded in the real-time observation of the expansion and deterioration of the anode material within batteries due to the movement of lithium ions.

In a paper published in the journal ACS Energy Letters, the scientists explain that the performance and lifespan of lithium-ion batteries are generally known to be affected by various changes that occur in the internal electrode materials during the charging and discharging processes. However, it is, difficult to monitor such changes during operation because major battery materials, such as electrodes and electrolytes, are instantly contaminated when exposed to the air.

In a lithium-ion battery, the lithium ions move to the anode during charging and move to the cathode during discharge. The KIST team succeeded in real-time observation of a silicon–graphite composite anode, which is being studied for its commercial use as a high-capacity battery. Theoretically, the charging capacity of silicon is 10 times higher than that of graphite, a conventional anode material. But the volume of silicon nanopowders quadruples during the charging process, making it difficult to ensure performance and safety.

It has been hypothesized that the nanopores formed during the mixing of the constituents of silicon–graphite composites can accommodate the volume expansion of silicon during battery charging, thereby changing the battery volume. However, the role of these nanopores has never been confirmed by direct observation with electrochemical voltage curves.

Using a self-designed battery analysis platform, the Korean researchers directly observed the migration of lithium ions into the silicon–graphite composite anode during charging and identified the practical role of the nanopores. It was found that lithium ions migrate sequentially into the carbon, nanopores, and silicon in the silicon–graphite composite.

Furthermore, they noted that the nano-sized pores tend to store lithium ions (fore-filling lithiation) before the lithium-silicon particles (Si lithiation), while the micro-sized pores accommodate the volume expansion of silicon as previously believed. Therefore, the research team suggests that a novel approach that appropriately distributes micro and nano-sized pores to alleviate the volume expansion of silicon, thereby improving the safety of the material, is necessary for the design of high-capacity anode materials for lithium-ion batteries.

“Just as the James Webb Space Telescope heralds a new era in space exploration, the KIST battery analysis platform opens new horizons in material research by enabling the observation of structural changes in electric batteries,” Jae-Pyoung Ahn, head of KIST Research Resources Division, said in a media statement.

“We plan to continue the additional research necessary for driving innovations in battery material design, by observing structural changes in battery materials that are not affected by atmospheric exposure.”

The number of newly registered electric vehicles (EVs) in Korea surpassed 100,000 units last year alone. Norway is the only other country to match such numbers. The core materials that determine the battery life and charging speed of now commonly seen EVs are anode materials. Korea’s domestic battery industry has been committed to finding revolutionary ways to increase the battery capacity by introducing new technologies or other anode materials. But what if we get rid of anode materials altogether?

A POSTECH research team led by Professor Soojin Park and Ph.D. candidate Sungjin Cho (Department of Chemistry) in collaboration with Professor Dong-Hwa Seo and Dr. Dong Yeon Kim (School of Energy and Chemical Engineering) at Ulsan Institute of Science and Technology (UNIST) have developed anode-free lithium batteries with performance of long battery life on a single charge.

The newly developed anode-free battery has a volumetric energy density of 977 Wh/L which is 40% higher than the conventional batteries (700 Wh/L). This means that the battery can run for 630 km on a single charge.

Batteries usually change the structure of anode materials as lithium ions flow to and from the electrode during repetitive charging and discharging. This is why the battery capacity decreases over time.

It was thought that if it was possible to charge and discharge only with a bare anode current collector without anode materials, the energy density—which determines the battery capacity—would increase. However, this method had a critical weakness which causes significant swelling of the anode volume and reduces the battery lifecycle. It swelled because there was no stable storage for lithium in the anode.

To overcome this issue, the research team succeeded in developing an anode-free battery in a commonly-used carbonate-based liquid electrolyte by adding an ion conductive substrate. The substrate not only forms an anode protective layer but also helps minimize the bulk expansion of the anode.

The study shows that the battery maintained high capacity of 4.2 mAh cm-2 and high current density of 2.1 mA cm-2 for a long period in the carbonate-based liquid electrolyte. It was also proven both in theory and through experiments that substrates can store lithium.

Further, what’s drawing even more attention is that the team successfully demonstrated the solid- state half-cells by using Argyrodite-based sulfide-based solid electrolyte. It is anticipated that this battery will accelerate the commercialization of non-explosive batteries since it maintains high capacity for longer periods.

The study was recently published in Advanced Functional Materials.

A University of Toronto researcher has developed a new technique to help recycle the metals in lithium-ion batteries, which are in high demand amid surging global sales of electric vehicles. Gisele Azimi, a professor in the departments of materials science and engineering and chemical engineering and applied chemistry in the Faculty of Applied Science & Engineering, and her team have proposed a new, more sustainable method to mine valuable metals—including lithium, but also cobalt, nickel and manganese—from lithium-ion batteries that have reached the end of their useful lifespan. “Getting these metals from raw ore takes a lot of energy,” says Jiakai (Kevin) Zhang, a Ph.D. candidate in chemical engineering and applied chemistry who is lead author on a new paper recently published in Resources, Conservation and Recycling. “If we recycle existing batteries, we can sustain the constrained supply chain and help bring down the cost of EV batteries, making the vehicles more affordable.” Part of Canada’s commitment to reach net-zero emissions by 2050 includes a mandatory target requiring 100 percent of new light-duty cars and passenger trucks sold in the country to be electric by 2035. Achieving this target will require an increase in the supply of critical metals, the price of which is already very high. For example, cobalt, a key ingredient in the cathode production of lithium-nickel-manganese-cobalt-oxide (commonly abbreviated as NMC) batteries widely used in EVs, is also one of the most expensive components of lithium-ion batteries due to its limited reserve. “We are about to reach a point where many lithium-ion batteries are reaching their end of life,” says Azimi. ”These batteries are still very rich in elements of interest and can provide a crucial resource for recovery.” Not only can recycling provide these materials at a lower cost, but it also reduces the need to mine raw ore that comes with environmental and ethical costs. The life expectancy of EV batteries is from 10 to 20 years, but most car manufacturers only provide a guarantee for eight years or 160,000 kilometers—whichever comes first. When EV batteries reach end of life, they can be refurbished for second-life uses or recycled to recover metals. But today, many batteries are discarded improperly and end up in landfills. “If we keep mining lithium, cobalt and nickel for batteries and then just landfill them at end-of-life, there will be a negative environmental impact, especially if corrosive electrolyte leaching occurs and contaminates underground water systems,” says Zhang. Conventional processes for recycling lithium-ion batteries are based on pyrometallurgy, which uses extremely high temperature, or hydrometallurgy, which uses acids and reducing agents for extraction. These two processes are both energy intensive: pyrometallurgy produces greenhouse gas emissions, while hydrometallurgy creates wastewater that needs to be processed and handled. In contrast, Azimi’s lab group is using supercritical fluid extraction to recover metals from end-of-life lithium-ion batteries. This process separates one component from another by using an extracting solvent at a temperature and pressure above its critical point, where it adopts the properties of both a liquid and a gas. To recover the metals, Zhang used carbon dioxide as a solvent, which was brought to a supercritical phase by increasing the temperature above 31ºC, and the pressure up to 7 megapascals. In the paper, the team showed that this process matched the extraction efficiency of lithium, nickel, cobalt and manganese to 90% when compared to the conventional leaching processes, while also using fewer chemicals and generating significantly less secondary waste. In fact, the main source of energy expended during the supercritical fluid extraction process was due to the compression of CO2. “The advantage of our method is that we are using carbon dioxide from the air as the solvent instead of highly hazardous acids or bases,” she says. “Carbon dioxide is abundant, cheap and inert, and it’s also easy to handle, vent and recycle.” Supercritical fluid extraction is not a new process. It has been used in the food and pharmaceutical industries to extract caffeine from coffee beans since the 1970s. Azimi and her team’s work builds on previous research in the Laboratory for Strategic Materials to recover rare earth elements from nickel-metal-hydride batteries. However, this is the first time that this process has been used to recover metals from lithium-ion batteries, she says. “We really believe in the success and the benefits of this process,” says Azimi. “We are now moving towards commercialization of this method to increase its technology readiness level. Our next step is to finalize partnerships to build industrial-scale recycling facilities for secondary resources. If it’s enabled, it would be a big game changer.”

Australia is poised to grab a fifth of the world’s lithium hydroxide refining capacity within five years as demand grows for battery metals that bypass China, Canberra said in a report.

China produces more than 80% of the world’s lithium hydroxide, a processed form of the in-demand metal, according to the International Energy Agency. However, several companies are building refineries in Australia that would turn locally-mined lithium ore into battery-grade chemicals.

If these plans progress on time Australia could have 10% of the refining market by 2024 from a negligible amount currently, and 20% by 2027, the government said in a report released Tuesday. But delays and technical issues could derail the timeline, it warned.

Chinese company Tianqi Lithium Corp. has already opened a refinery near Perth in Western Australia, in a joint venture with Australia’s IGO Ltd. US group Albemarle Corp. is close to opening a plant nearby in a joint venture with Mineral Resources Ltd. Both projects have been beset with technical problems and cost blowouts, however.

Australian groups Wesfarmers Ltd, Mineral Resources and Liontown Resources Ltd. are also planning to open new lithium refineries.

Australia is the world’s biggest producer of the raw form of the metal that’s vital to the electric vehicle industry, supplying just under half of global demand. Most of that is sent to China as hard rock ore, where it’s refined into battery-grade lithium hydroxide.

Asia remains the biggest market for Australian lithium, but demand is growing in Europe and the US as carmakers there accelerate the switch to EVs, the government said in the report. It cited President Joe Biden’s landmark climate legislation, the Inflation Reduction Act, as a driver of refining in Australia. The IRA grants tax credits on EVs, but requires 50% of materials to be produced either in the US or from a country with a US free trade agreement.

The IRA is likely to boost Australia’s lithium sector, BloombergNEF said in a report on Tuesday, pointing to recent announcements by South Korean battery maker SK On Co. and Japan’s Prime Planet Energy & Solutions Inc. that they planned to increase investment in the country.

Lithium is on track to become the Australia’s fifth-most valuable export commodity, surpassing beef and wheat, and on par with copper and crude oil, the government said. Exports of the battery metal are forecast to reach A$13.8 billion ($8.9 billion) this financial year, a more than tenfold rise over two years.

Most of the growth in export revenue is due to surging prices, which have doubled since the beginning of the year as carmakers around the world scramble to secure enough to meet ambitious EV targets, the government said. Lithium ore prices are projected to more than quadruple this year, it said.

Increased output will also drive the sector’s earnings, with Australian lithium production expected to more than double over the next five years. Still, it remains a small export industry next to the three biggest export sectors: iron ore, coal, and liquefied natural gas will together earn A$329 billion in revenue this year, the government forecast.

A key lithium producer in Australia, the world’s top supplier, is urging electric car manufacturers and battery makers to become its partners in new refinery projects, arguing their direct financial backing is vital to avoid shortfalls of the material that’s crucial to the clean energy transition.

Pilbara Minerals Ltd. is seizing on a current rush by automakers to secure future supplies of battery materials by seeking new deals with customers to jointly develop refineries, Chief Executive Officer Dale Henderson said in an interview.

“There’s certainly a level of desperation from some groups” who are end-users of lithium and seeking more access to output, he said. “If you believe the supply-demand outlook, there’s going to be a shortage, and the car companies who haven’t secured the supply chain are going to have a problem.”

Lithium demand is forecast to almost triple by mid-decade from last year’s level, BloombergNEF said in a July report. Prices hit a new record in China last month on increasing consumption, with automakers including BMW AG and General Motors Co. among companies adding new supply agreements in recent weeks.

Pilbara Minerals — which has a market valuation of about $8.5 billion — is planning a major expansion of its mine in Western Australia in the next two years that will nearly double output of lithium-bearing raw materials. At the same time, the company will aim to leverage current strong demand to move away from long-term supply deals and win more pricing power.

Previously, lithium miners had rushed to strike agreements with refiners, battery companies and car manufacturers to show investors the strength of the market for their product, and to help secure funding to develop projects. With analysts now predicting prices will stay elevated after more than doubling this year, according to a key index, producers are in a stronger position to demand better deals.

“Two years ago, no one wanted to be in lithium, and the phone would not ring,” Henderson said. “Now, the phone won’t stop ringing.”

Another Australian lithium miner, Liontown Resources Ltd., demonstrated the sector’s growing bargaining power in June, when it sealed a deal with Ford Motor Co. The supply pact was notable because it included a A$300 million ($195 million) loan from the car giant at a comparatively low interest rate of 1.5% above the bank bill swap rate, a common benchmark in Australia.

Whereas Liontown sought funding for its Kathleen Valley mine project in western Australia, Pilbara Minerals sees the chance to add to its foothold in downstream chemical processing, a strategy designed to help the producer diversify away from the volatility of raw commodities.

Pilbara Minerals has an 18% stake in a joint venture with South Korea’s POSCO Holdings Inc. and expects their plant to begin producing battery-grade lithium hydroxide late next year. The Australian miner is now actively seeking other similar deals, potentially with carmakers, Henderson said in Perth last week.

China-based Tianqi Lithium Corp. has begun producing lithium hydroxide at a refinery in western Australia — the first new major hub outside its home country — and Albemarle is developing a separate operation nearby. It’s unlikely Pilbara would add a similar facility in Australia, though, it’s in the early stages of planning a refinery that would turn lithium-bearing ore — known as spodumene — into an intermediary salt product.

That would be easier to produce than lithium hydroxide, and also more valuable and cheaper to transport than spodumene concentrate, Henderson said.

Pilbara’s mine expansion will add an extra 400,000 tons a year of hard rock lithium ore — which equates to around 50,000 tons of battery grade lithium — within the next two years, Henderson said. Last year, Australia exported 247,000 tons of lithium, accounting for around 50% of global supply.