{"id":340811,"date":"2010-02-19T15:03:00","date_gmt":"2010-02-19T20:03:00","guid":{"rendered":"http:\/\/www.businessinsider.com\/supplying-elecrtric-cars-2010-2"},"modified":"2010-02-19T15:03:00","modified_gmt":"2010-02-19T20:03:00","slug":"wanna-supply-energy-for-those-electric-cars-weve-got-a-huge-bolivia-problem","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/340811","title":{"rendered":"Wanna Supply Energy For Those Electric Cars? We&#8217;ve Got A Huge Bolivia Problem"},"content":{"rendered":"<div class=\"content\">\n<p><em>(This is a guest post by David Summers, known as <a href=\"http:\/\/www.theoildrum.com\/user\/Heading%20Out\">Heading Out<\/a> on   The Oil Drum.&nbsp; He is a professor at Missouri University of Science and Technology. This post  appears under a <\/em><a href=\"http:\/\/creativecommons.org\/licenses\/by-sa\/3.0\/us\/\">Creative  Commons Attribution-Share Alike 3.0 United States License) <\/a><\/p>\n<p>Just over a year ago, and spurred by an article in <a href=\"http:\/\/www.time.com\/time\/world\/article\/0,8599,1872561,00.html\">Time<\/a>,    I wrote a post on the possible global <a href=\"http:\/\/bittooth.blogspot.com\/2009\/01\/more-on-lithium-production.html\">supply  of lithium<\/a>, which is used in renewable batteries, and a major  choice for use in the batteries of electric vehicles, such as the <a href=\"http:\/\/engineeringtv.com\/blogs\/etv\/archive\/2009\/02\/04\/chevy-volt-s-lithium-ion-battery.aspx\">Chevy  Volt<\/a>. Since the story has acquired more recent interest<a href=\"http:\/\/www.boston.com\/business\/technology\/articles\/2010\/02\/15\/massive_lithium_reserves_could_make_bolivia_a_key_energy_supplier\/\"> this week<\/a>, and with <a href=\"http:\/\/seekingalpha.com\/article\/188489-the-future-of-the-lithium-market-part-i\">new  information<\/a>, it is worth re-visiting the topic.<\/p>\n<\/div>\n<p><!-- close content div --> <!-- close summary div --><\/p>\n<p>I began the original post by noting that our first introduction to  these batteries was in our role as an Explosives Lab when we found out &#8211;  in a series of experiments a long time ago &#8211; that they can blow up if  handled wrongly.   And it turns out that such a risk is still around,  though <a href=\"http:\/\/www.computerworld.com\/s\/article\/9155658\/Exploding_batteries_on_planes_Rare_and_small_risk_\">not  that common<\/a>.   But to put the event in context:<\/p>\n<blockquote>\n<p>Fifteen incidents in the last two decades were serious  enough to warrant a decision to re-route a plane or perform an emergency  landing, according to FAA data.<\/p>\n<p>For instance, in 2008, there were nine battery accidents resulting in  two minor injuries. To put that figure in perspective, that year <a href=\"http:\/\/www.prba.org\/Default.aspx\">3.3 billion lithium batteries  were transported<\/a> on <a href=\"http:\/\/www.aci.aero\/cda\/aci_common\/display\/main\/aci_content07_c.jsp?zn=aci&amp;cp=1-5-54_666_2__\">77  million flights<\/a>, including 56 million passenger and combination  passenger\/cargo flights.<\/p>\n<p>Based on that data, one&#8217;s chances of being on the same flight with  someone who suffers a minor injury because of a malfunctioning battery  was about 1 in 28 million in 2008. In comparison, the one-year odds of  dying from a car accident in the U.S. are 1 in 6,584, according to the <a href=\"http:\/\/www.nsc.org\/news_resources\/injury_and_death_statistics\/Documents\/Odds%20of%20Dying.pdf\">National  Safety Council<\/a>.<\/p>\n<\/blockquote>\n<p>Since we also look at processing, I became curious about where and  how the lithium is mined. Recently, however, h\/t to JoulesBurn, there  was an article by<a href=\"http:\/\/seekingalpha.com\/article\/131614-lithium-batteries-nothing-but-illusion\"> Jack Lifton<\/a> explaining some additional production issues.  So what I  thought I&rsquo;d do is to integrate some of this additional information into  a more up-to-date post.<\/p>\n<p>It turns out that most lithium comes from <a href=\"http:\/\/www.planetark.com\/dailynewsstory.cfm\/newsid\/50782\/story.htm\">salt  lake deposits<\/a> such as those in <a href=\"http:\/\/news.bbc.co.uk\/2\/hi\/business\/7707847.stm\">Chile and Bolivia<\/a>.<\/p>\n<p>The biggest deposit in the world lies in the Salar de Uyini,  Bolivia, which is also the world&rsquo;s largest salt flat. A quick look  through Google Earth gives the location, with the white in the picture  being the salt flat, and not snow.  La Paz, the capital of Bolivia is at  the top.<\/p>\n<p><img decoding=\"async\" class=\"center\" src=\"http:\/\/static.businessinsider.com\/image\/4b7ee14f0000000000ea2e95\/bolivia.jpg\" border=\"0\" alt=\"bolivia\" \/><\/p>\n<p><em>The world&rsquo;s largest lithium deposit is at Salar di Uyuni  (Google Earth)<\/em><\/p>\n<p>The lithium is found in the crystallized salt, and in the brine that  underlies the crust. As the world gears up to demand more, Bolivia is  determined to keep as much of the &ldquo;value added&rdquo; part of the processing <a href=\"http:\/\/www.nytimes.com\/2009\/02\/03\/world\/americas\/03lithium.html\">to  itself<\/a>. Thus the intent has been that the state would initially act  alone in <a href=\"http:\/\/paguntaka.org\/2009\/10\/20\/bolivia-foreign-company-to-develop-lithium-mining-resources\/\">industrializing  their deposits<\/a>, and not look for foreign partners until 2013.   Unfortunately its attitude has not drawn a lot of excitement from the  world press, since there appears to be more than enough for current  demands available <a href=\"http:\/\/www.icis.com\/Articles\/2009\/11\/02\/9258538\/bolivias-lithium-is-not-as-important-as-the-country-wants-you-to-think.html\">from  elsewhere<\/a>.<\/p>\n<blockquote>\n<p>Chile provides 61% of lithium exports to the US, with  Argentina providing 36%, says the US Geological Survey (USGS), with  Chile having estimated reserves of 3m tonnes, and Argentina about  400,000 tonnes. . . . . . Lithium production via the brine method is  much less expensive than mining, says John McNulty, analyst at global  bank Credit Suisse. Lithium from minerals or ores costs about  $4,200-4,500\/tonne (&euro;2,800-3,000\/tonne) to produce, while brine-based  lithium costs around $1,500-2,300\/tonne to produce.<\/p>\n<p>Melting snow from the Andes Mountains runs about 130 feet (39.6  meters) underground, into lithium deposits, then gathering into pools of  salt water, or brine. The brine is pumped out from under salt flats  such as Chile&#8217;s Salar de Atacama, and spread among networks of ponds  where the desert sun and high altitude provide a beneficial environment  for evaporation.<\/p>\n<p>It takes about a year for the brine to reach a lithium concentration  of 6%, when it is shipped to a plant to be purified, dried and  crystallized into lithium carbonate, which then is granulated into a  fine powder for battery makers. Lithium stores a very large amount of  energy for its volume, which makes it perfect for electronics.<\/p>\n<\/blockquote>\n<p>Unfortunately for those who are expecting electric cars to spring out  of the woodwork in the next few years (remembering that the President&rsquo;s  plan calls for 1 million plug-in hybrids by 2015) Mitsubishi estimates  that the world will need 500,000 tons per year at full ramp up. The  Salar di Uyuni deposit in Bolivia holds at least 9 million tons,  although the country has, in total, perhaps as much as 73 million tons.   The only progress to date is a pilot plant that was intended to produce  some 40 tons by the end of last year, as it geared up to full  production, with the product coming from <a href=\"http:\/\/www.stockhouse.com\/Bullboards\/MessageDetail.aspx?s=ADE&amp;t=LIST&amp;m=23871226&amp;l=0&amp;pd=0&amp;r=0\">brine  processing<\/a>.   The world supply of lithium itself is considered to  be 28.4 million tons, equivalent to <a href=\"http:\/\/lithiumabundance.blogspot.com\/\">150 million tons<\/a> of  lithium carbonate.    The  USGS has estimated that the deposit can  produce about 5.4 million tons of lithium, relative to a total US  reserve base of 410,000 tons.  With the slump in the world economy last  year demand dropped, and so lithium producer SQM SA has recently <a href=\"http:\/\/www.mineralnet.co.uk\/Article\/2384883\/Channel\/19555\/SQM-on-lithium-price-cuts.html\">dropped  the price 20%<\/a> since there is more than enough to go around.<\/p>\n<p><img decoding=\"async\" src=\"http:\/\/static.businessinsider.com\/image\/4b7ee17c000000000015f14b\/lithium-stats.jpg\" border=\"0\" alt=\"lithium stats\" \/><\/p>\n<p><em>Source <a href=\"http:\/\/minerals.usgs.gov\/minerals\/pubs\/commodity\/lithium\/lithimcs07.pdf\">USGS<\/a><\/em><\/p>\n<p>Of course that all depends on how Chinese demand changes in the next  short while.<\/p>\n<p><img decoding=\"async\" src=\"http:\/\/static.businessinsider.com\/image\/4b7ee1b5000000000015dc8b\/lithium-demand.gif\" border=\"0\" alt=\"lithium demand\" \/><\/p>\n<p><em>Source <a href=\"http:\/\/www.researchinchina.com\/Htmls\/Report\/2009\/5659.html\">Research  in China<\/a><br \/><\/em><\/p>\n<p>In terms of how much lithium goes into a battery, it is about 20 lb  for an EV, and about 0.1 oz for your cell phone. However there are other  industrial uses for lithium, so that at present only about 25% of world  production ends up in a battery.<\/p>\n<p>Part of the problem with the Bolivian deposit, as Jack Lifton noted  is that the deposit is contaminated with magnesium, which is also true  at the Atacama deposit in Chile, except that while the Mg\/Li ratio there  is 6.4 to 1, the deposit is 0.15% Lithium.  At Hombre Muerto the  Argentinean deposit,  the Mg\/Li ratio is down to 1.37 to 1, making it  easier to produce, even though the grade is lower, at only 0.062% Li.    Unfortunately the Bolivian deposit has only a 0.028% lithium, while an  Mg\/Li ratio of 19.9:1 so that it has both a poorer grade, and a higher  Mg content.  To add to these disadvantages, being high in the Andes  means that evaporation is not as fast, and so processing costs go even  further. This is especially true since the lake apparently floods every  year, slowing evaporation even further.<\/p>\n<p>So put it all together, and, for the moment, the production of much  lithium from Bolivia might be a bit further in the future than they  currently expect.  Which is perhaps why the plant gets being pushed  further and further into the future.  By November last it had been <a href=\"http:\/\/www.thefreelibrary.com\/Bolivia:+Bolivia+says+lithium+plant+on+track+for+2014.-a0211130473\">put  back to 2014<\/a>.  (And the claim that the technology will all be  homegrown is a little more suspect.)<\/p>\n<blockquote>\n<p>.  .  . companies like Japan&#8217;s Sumitomo and Mitsubishi,  and South Korea&#8217;s state-run Kores &#8212; Korea Resources Corporation, are  helping the government find the best way to extract lithium from Uyuni  &#8220;free of charge,&#8221; but will be the preferential buyers of Bolivia&#8217;s  lithium carbonate.<\/p>\n<\/blockquote>\n<p>Lithium is also produced from coarse grained igneous rocks called  pegmatites, with spodumene being the most common.  American mines were  in the Carolinas, but closed since brine processing is cheaper than the  mining and processing of the hard rock.<\/p>\n<p>Geothermal power plants draw hot brine from underground as a power  source, and these brines can contain dissolved minerals.  Thus, for  example the seven Geothermal plants at the <a href=\"http:\/\/ludb.clui.org\/ex\/i\/CA9189\/\">Salton Sea<\/a> are <a href=\"http:\/\/lithiumabundance.blogspot.com\/\"> reported<\/a> to be able to  produce up to 16,000 tons of lithium per year.   The facilities are  better known as <a href=\"http:\/\/geoheat.oit.edu\/bulletin\/bull21-2\/art1.pdf\">a source of  zinc<\/a> (pdf).  However the potential as a <a href=\"http:\/\/earth2tech.com\/2008\/08\/10\/simbol-mines-first-round-to-extract-lithium-from-geothermal\/\">source  of lithium<\/a> is becoming increasingly recognized.<\/p>\n<p><a href=\"http:\/\/www.businessinsider.com\/supplying-elecrtric-cars-2010-2#comments\">Join the conversation about this story &#187;<\/a><\/p>\n<p><b>See Also:<\/b><\/p>\n<ul>\n<li><a href=\"http:\/\/www.businessinsider.com\/toyota-subsidiary-purchases-stake-in-mining-company-to-procure-vital-lithium-for-batteries-2010-1\">Toyota Just Got All The Lithium It Needs By Claiming Stake In Mining Company<\/a><\/li>\n<li><a href=\"http:\/\/www.businessinsider.com\/big-money-in-lithium-batteries-2009-9\">Companies Other Than Automakers That Cash In On Electrics<\/a><\/li>\n<li><a href=\"http:\/\/www.businessinsider.com\/video-audis-electric-etron-is-the-real-deal-2009-12\">Audi&#8217;s Electric e-Tron Is Slick!<\/a><\/li>\n<\/ul>\n<p><a href=\"http:\/\/feedads.g.doubleclick.net\/~a\/Id2iboqny7tjNqm2TidVEicjBrw\/0\/da\"><img decoding=\"async\" src=\"http:\/\/feedads.g.doubleclick.net\/~a\/Id2iboqny7tjNqm2TidVEicjBrw\/0\/di\" border=\"0\" ismap=\"true\"><\/img><\/a><br \/>\n<a href=\"http:\/\/feedads.g.doubleclick.net\/~a\/Id2iboqny7tjNqm2TidVEicjBrw\/1\/da\"><img decoding=\"async\" src=\"http:\/\/feedads.g.doubleclick.net\/~a\/Id2iboqny7tjNqm2TidVEicjBrw\/1\/di\" border=\"0\" ismap=\"true\"><\/img><\/a><\/p>\n<div class=\"feedflare\">\n<a href=\"http:\/\/feeds.feedburner.com\/~ff\/greensheet?a=xkpQLjiD8-w:8o-rCxn9NuU:yIl2AUoC8zA\"><img decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~ff\/greensheet?d=yIl2AUoC8zA\" border=\"0\"><\/img><\/a> <a href=\"http:\/\/feeds.feedburner.com\/~ff\/greensheet?a=xkpQLjiD8-w:8o-rCxn9NuU:F7zBnMyn0Lo\"><img decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~ff\/greensheet?i=xkpQLjiD8-w:8o-rCxn9NuU:F7zBnMyn0Lo\" border=\"0\"><\/img><\/a> <a href=\"http:\/\/feeds.feedburner.com\/~ff\/greensheet?a=xkpQLjiD8-w:8o-rCxn9NuU:V_sGLiPBpWU\"><img decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~ff\/greensheet?i=xkpQLjiD8-w:8o-rCxn9NuU:V_sGLiPBpWU\" border=\"0\"><\/img><\/a> <a href=\"http:\/\/feeds.feedburner.com\/~ff\/greensheet?a=xkpQLjiD8-w:8o-rCxn9NuU:qj6IDK7rITs\"><img decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~ff\/greensheet?d=qj6IDK7rITs\" border=\"0\"><\/img><\/a> <a href=\"http:\/\/feeds.feedburner.com\/~ff\/greensheet?a=xkpQLjiD8-w:8o-rCxn9NuU:gIN9vFwOqvQ\"><img decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~ff\/greensheet?i=xkpQLjiD8-w:8o-rCxn9NuU:gIN9vFwOqvQ\" border=\"0\"><\/img><\/a>\n<\/div>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~r\/greensheet\/~4\/xkpQLjiD8-w\" height=\"1\" width=\"1\"\/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(This is a guest post by David Summers, known as Heading Out on The Oil Drum.&nbsp; He is a professor at Missouri University of Science and Technology. This post appears under a Creative Commons Attribution-Share Alike 3.0 United States License) Just over a year ago, and spurred by an article in Time, I wrote a [&hellip;]<\/p>\n","protected":false},"author":3226,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-340811","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/340811","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/3226"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=340811"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/340811\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=340811"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=340811"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=340811"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}