The U.S. is in crisis. Without secure domestic lithium supplies, Americans may be forced to rely even more heavily on lithium from foreign jurisdictions, primarily South America, Australia and possibly China. Current estimates indicate the U.S. ranks ninth in the world in annual lithium production. Industry is working hard to catch up, but we're behind schedule.
The supply chain problem threatens to get in the way of Americans' daily lives in ways we haven't considered. All the numbers suggest the U.S. will need greater access to domestic lithium resources sooner than some may have thought.
As important, having a domestic lithium supply enables us to better manage lithium production in an environmentally sensitive way, while creating local jobs and contributing to the local, regional and national economies. ACME Lithium is among a handful of North American companies trying to solve this crisis.
Demand for lithium is suddenly increasing dramatically
Lithium batteries are entrenched in our daily lives. They run our cell phones, laptops, cordless power tools and many other household necessities as well as numerous life-saving medical devices. They also play an important role in our power grid and alternative energy sources.
And even more impacted, now with the growing number of EVs and hybrids on our roads and in our garages, demand shows no sign of slowing.
By 2027, the global lithium-ion battery market is expected to reach $87.54 billion, up from $32.9 billion in 2019, at a compounded annual growth rate of 13%. Globally, it is forecasted that 10% of passenger vehicles will be powered by lithium-ion batteries by 2025; by 2030, that number is expected to increase to 27% of all passenger vehicles. If this growth trend continues, more than half of all vehicles around the world will be powered by lithium-ion batteries by 2050.
"While some people point to emerging lithium battery alternatives, it's clear that lithium batteries will continue driving our global economy for at least the next decade," says ACME Lithium CEO and President Steve Hanson.
Energy storage also depends on lithium
Batteries are the preferred component for energy storage systems because they're flexible, have a short lead time for construction, and respond quickly when the grid needs to tap into storage. And with a longer life cycle and highly efficient operation, lithium-ion batteries are the choice battery metal that most producers turn to when it comes to powering an energy storage system.
At the federal level, the Inflation Reduction Act (IRA) released in 2022 details the Biden Administration's vision for a clean energy future and includes tax credits related to investment in energy storage. "We're starting to see a significant shift and it's not only the numbers that are impressive - the rapid pace of growth is staggering and energy storage capacity in the US has been booming. The numbers were negligible up until 2020, but now the US Energy Information Association reports that battery storage capacity is expected to increase significantly by 2025 in
the US, adding 20.8 GW of battery storage capacity over the next two years up from 7.8 GW in 2022," Hanson observes.
American Clean Power's Clean Energy Impact Report released in April 2023 states that $150 billion in clean energy investments and 10 battery storage manufacturing facilities were already announced within eight short months after the IRA was passed.
Demand in the lithium industry has seen a bit of a domino effect since the announcement of the IRA. At the consumer level, new incentives to purchase EVs are further driving supply demand for battery metals. The legislation also introduced domestic battery and critical mineral standards as well as incentives for US automakers to grow a domestic supply chain that eliminates reliance on foreign markets. Emerging clean energy industries are growing quickly, with American Clean Power reporting an unprecedented number of plans for new solar and wind manufacturing plants, along with battery storage systems - which rely heavily on lithium-ion batteries.
Everyone's view is that the U.S. is behind schedule
Most major companies, such as automakers, already know where they'll get their lithium in the next three to four years. "Our concern," says Hanson, "is where will we get it in the next five to 10 years? If they forecast selling a million trucks in 2029, where will the batteries come from? That's where we may fall short. The U.S. needs to put on its running shoes."
It takes five to seven years to locate lithium deposits, conduct the feasibility studies, go through the permitting, then begin construction.
Industry and government are working on solutions
In January 2023, The Department of Energy issued a conditional commitment to loan up to $700 million to finance the construction of Ioneer Ltd's Rhyolite Ridge Lithium-Boron Project in Nevada, an area that is at the epicenter of U.S. lithium exploration and development. This project would be the second to receive federal support as the U.S. seeks to create its own supply chain of critical minerals vital for clean energy.
ACME Lithium has projects strategically located adjacent to the Ioneer's Rhyolite Ridge project, with the company's approximately 2,975 acre Fish Lake Valley project claims neighboring Ioneer directly to the west. To the east, ACME's Clayton Valley project totals 2,440 acres and is contiguous to the Silver Peak lithium mine owned by one of the largest lithium producers in the world, Albemarle Corporation. Silver Peak is the only current lithium production in the U.S. where lithium has been produced continuously from brines since 1966.
ACME also hopes to become a major domestic lithium player in central Canada, with mineral holdings in southeastern Manitoba comprising approximately 17,000 acres or 70 square kilometers. These projects are located strategically and contiguous to the world-renowned Tanco Mine, a lithium, cesium and tantalum producer since 1969. The Company has also entered into option and purchase agreements to acquire interest in prospective lithium mineral claims totaling approximately 41,694 hectares or 417 square kilometers in northeastern Saskatchewan.
Hanson explains that ACME"s project locations being adjacent to or nearby current lithium projects is significant because the best place to find a mine is next to an existing one. However it
does not guarantee exploration success or that mineral resources or reserves will be defined on the properties.
In two years, ACME's team has assembled what some consider one of the most promising portfolios of lithium projects in North America backed by leading lithium investors. The Company works steadily to advance its multiple projects with a long-term view to help secure North America's domestic supply of lithium.
The significance of lithium brine
Lithium deposits can be found in aqueous brine, as well as in trace amounts in hard rock and clay. ACME has found lithium brine in Clayton Valley. Should this project come to full fruition, the company intends to use a technology called direct lithium extraction (DLE) because of its potential for environmental and economic advantages.
New technology is enabling companies to extract resources in a more sustainable and environmental way. With DLE, lithium brine is brought up from aquifers underground, and piped through a plant where the lithium is extracted. This method has a smaller footprint than traditional evaporation ponds and potentially the lowest environmental impact.
The U.S. should exert a leadership position
Hanson stresses: "Based on what we see happening right now, the timeline for developing a domestic lithium supply needs to be shortened. The extraction of critical minerals needs to be done without bottlenecks. The only way that can happen is if government and regulatory bodies invest in key human resources and move at a faster pace while ensuring the proper environmental, safety and interests by key shareholders are met."
He concludes, "The benefits to advancing these projects are huge. The industry has very good technical people and strong standards for ensuring adherence to environmental and human best practices. Lithium has strong potential to benefit communities by creating jobs and providing the funding for our roads, schools and overall infrastructure."
Find out more about the status of North American lithium exploration at ACMELithium.com.
