Lithium battery take-up 'faces future challenges'

Date: 18/8/2011

While electric cars are expected to become an increasingly popular mode of transport in the future due to their green credentials and the rising cost of fossil fuels, the sector could face some challenges.

Aswin Kumar, Industry Analyst at Frost & Sullivan's Automotive and Transportation Division, writes in Waste Management World that the issue lies with the availability of the lithium used in the batteries that power such vehicles.

Although there is enough to meet demand, he notes that the majority of the substance is concentrated in Chile, Bolivia and Argentina in South America.

Mr Kumar claims that issues of "unrest" within these nations can have an effect on supply - and therefore the price of the finished battery.

He adds that pressure on lithium providers will increase as it is expected that there are likely to be one million electric vehicles (EVs) on the roads by 2015.

"Vehicle manufacturers and the national governments are treating lithium as the future energy source and have started forging alliances to safeguard their needs," Mr Kumar states.

Jonathan Visscher, spokesperson for the Society of Motor Manufacturers and Traders, recently claimed that demand for EVs is proving strong within emerging markets, such as China.

He adds that these countries could play an important role in the automobile supply chain as a result.

Posted by Nick Anderson