Lithium is, currently, essential in developing the battery technology needed to power the low-carbon future.
We say currently as we cannot say with certainty what metals and minerals will win out as the main ingredients in future battery and storage technologies.
There has been a fair amount of talk about lithium-ion alternatives, incuding sodium-ion, zinc-ion, nickel hydride, nickel-hydrogen, iron-air—and more.
Proponents of these alternatives point to some key pitfalls with lithium, including its supply-constrained market. Ironically, one of the main things buoying lithium prices could also be its undoing . . .
There are also a fair amount of accounts of exploding lithium-ion batteries, as lithium is highly reactive and flammable.
Teslas randomly igniting and burning down houses in the night, large lithium-ion batteries burning for days at plants—not good.
However, these challenges aside, many experts seem to agree that alternative batteries will complement lithium-ion batteries, not replace them.
Lithium batteries are by far the most popular battery storage option today, controlling more than 90% of the global grid battery storage market, thanks to their high energy density and lightweight characteristics. And new innovations, including replacing graphite with silicon to increase power capacity, will make lithium-ion batteries even more competitive.
Projections don’t see demand for lithium letting up any time soon. The silvery-white metal has not only proved to be one of the essential ingredients for the green future, but has also captured the attention of the masses.
2022 has had a rocky start, but unless we pump the brakes on switching over to cleaner, greener technologies, lithium will remain a solid investment.
-Dear Retail Investors Editorial Team