Truck & Off-Highway Engineering - December 2023 - 7

TECHNICAL INNOVATIONS
SUPPLY CHAIN
Leaders optimistic North America lithium supply
gap can be eliminated
North American lithium supply chain moderator James Frith (left) and panelists (from left) Mujeeb
Ijaz, Robert Privette, Rakesh Nahta, Hideki Ozawa and Kevin Rhodes.
At the Battery Show North America in
Novi, Michigan, in September, a panel of
leaders addressed North America's lithium
supply challenges and how aggressive
movement from companies and
governments will attempt to address
the problem.
Moderator James Frith, a principal
with Volta Energy Technologies,
opened by laying out the extreme challenges,
including the fact that a decade
ago, 75% of the world's lithium supply
came from China, Chile and Australia.
" By 2030, " he said, those countries'
share of all supply will be less than 50%.
Frith laid out an even starker number:
That next year, in 2024, there will be
roughly 850 GWh of demand in the
North American lithium market, but
only 350 GWh of supply.
Given the importance, from both
geopolitical and supply-efficiency perspectives,
of securing more North
American-based lithium supply for the
rapidly advancing EV market, it may be
surprising that companies think the
challenge can be met.
Mujeeb Ijaz, founder and CEO of battery
manufacturer Our Next Energy
(ONE), expressed optimism. " We're in a
rapidly evolving story, " he said. " I think
TRUCK & OFF-HIGHWAY ENGINEERING
we're going to cure the gap in a matter
of years. In just one year, we've seen 15
factories announced and $70 billion in
investments. I think next year [will only
see that number grow]. "
Ijaz also said that managing just the
lithium supply provides only a partial
solution. As more companies like his
bring non-lithium-based batteries to
market, demand should drop. " Demand
management must be part of the solution, "
he said.
Robert Privette, the business development
manager for cathode supplier
Umicore, said he didn't think all this need
would cause an unsustainable increase in
lithium prices. " We just can't afford to
have more expensive lithium, " he said.
" We just can't afford the margins. " That
means firms will rush in to help meet demand
and keep prices down.
Privette was also one of the majority
of panelists who said maintaining a diverse
supplier list was key. One clear
drawback of relying on a single supplier
is figuring out what happens if the supplier
can't deliver the correct purity of
lithium for batteries? There must be
other suppliers to draw from.
Frith added that, as OEMs begin to
contract directly with second-tier mining
December 2023 7
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Truck & Off-Highway Engineering - December 2023

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