Lithium - Treasure or Threat
EU and others are working on expanding battery production. It requires lots of resources, including the elusive element Lithium.
Lithium is the third element in the periodic table, just above Sodium with which is shares some properties. Lithium is found in small concentrations in the Earth’s crust and oceans, ranking as the 31st most abundant element, but rarely in pure form because of its high reactivity. When exposed to air, it quickly degrades or even burns with a silvery or red flame. It can be extracted from many different sources, but at different cost and not easily in in the desired purity for production purposes.
Until the first commercialization of the Lithium battery in 1991, the main uses of the element was for high-temperature lubricants in aircraft and other applications, in nuclear weapons production such as priming fusion H-bombs with the desired amount of Tritium, and a number of other different specialties. A very minor but important one being certain Lithium salts as medication for bipolar disease.
Lithium-ion batteries were introduced by Sony for its electronic products and became the most successful type of rechargeable battery. Other types of batteries were attractive because they had a higher energy density, but were not rechargeable and/or were too unsafe because of the risk of overheating when short-circuited. Thus, Lithium-ion became the most common type of car batteries, even if they are quite heavy for the amount of energy carried, but they are more reliable and safe, at least when controlled by well-engineered electronics and software. China is the largest car battery producer.
With the enormous growth in electric vehicle (EV) production, especially in China, EU and USA has become aware that it is of strategic interest to safeguard domestic production of not only the cars, but the necessary components, as well. Certain components and raw materials that are essential for EV production and much less important for traditional fossil-fuel driven vehicles. Lithium is one, others are actually also elements, so-called rare-earth elements used to produce extra strong magnets for the engines of EVs. Actually, the extra strong permanent magnets for modern, efficient wind turbines are also using rare-earth elements.
In order to enhance and strengthen Lithium production in Europe, the EU has long shown interest in developing a field in Serbia, that has been thoroughly investigated to convince commercial mining companies that it is viable in terms of volume, quality and economy. Serbia is not a member of the EU but has a application process running, with a few stones in the road still to be removed, for full membership. But the matter is of so high interest, that the EU has entered into a strategic partnership with Serbia to develop the Lithium production.
EU strategic partnership signed on 24 July 2024
EU and the Republic of Serbia have signed a Memorandum of Understanding (MoU) launching a Strategic Partnership on sustainable raw materials, battery value chains and electric vehicles. The Partnership aims to support the development of new local industries and high-quality jobs along the electric vehicle value chain in full respect of high environmental and social standards while addressing the concerns of local communities with full transparency.
The Partnership builds on the Stabilisation and Association Agreement ('SAA') entered into force on 1 September 2013 and is in line with EU's New Growth plan for the Western Balkans. It represents a building bloc in advancing Serbia's integration within the EU's single market, and further boosting its economic, social and environmental convergence with the EU.
In other words, the EU considers this a development plan for Serbia towards more integration in preparation for the eventual full membership of EU. We can add that there are other strategic purposes. First, that Serbia should be convinced to leave the Russia-influenced sphere that it is currently part of. It is about weakening Russian influence on the neighboring countries, and about including Serbia in the EU economy while barring Russia of any economic or industrial ties. Second, it is also a way of strengthening self-sufficiency in important industries, of which car production has been very important for the largest EU countries for decades.
Protests and unrest in Serbia
It was not a surprise, but inconvenient that the Serbian government temporarily stopped the mining project before the domestic elections. But now these are over, the project was thought to reopen. Until new protests erupted, and yesterday a large demonstration came to the national broadcaster’s headquarters to protest against the project because of the loss of fertile land (of their ancestors), environmental damage inflicted and lack of information of what will be done about it.
Environment: Lithium mining plans deepen divisions within Serbia (Balkan greeen energy news) Environmentalist group Eko straža held a protest in front of the building of Serbia’s public broadcaster RTS to highlight the arrests and the criminal charges against several dozen activists campaigning to ban the exploration and mining of lithium and boron ores. On the other hand, the country’s Ministry of Mining and Energy said it received an anonymous threat related to Rio Tinto’s Jadar project.
Photo: Eko straža / X
Rio Tinto has paired the project with their new extraction process that is expected to double the yield compared with similar operations elsewhere. They have also promised to find more environmentally friendly ways, to relieve the concerns of the local population. It is not going to be easy, though, and the government will - in light of the new, invigorated, protests yesterday, most like demand more assurances from both Rio Tinto and the EU Commission. And btw from the German Chancellor who paid a separate visit to Serbia earlier.
The chairman af Rio Tinto, Jacob Stausholm is used to clashes with local population and governments and is confident that a solution will be reached, and patient enough to find his way. He has served as chief finance officer for many years in multinational corporations, first in Danish services giant ISS and latest in the huge container shipping line Maersk. When he was hired for Rio Tinto, the intention was originally that he should also serve this company, even larger than the two others, as their finance officer. But by coincidence, Rio Tinto ran into severe problems with their Australian iron mining operation. The mining giant had blasted away two ancient rock caves at Juukan Gorge in northwestern Australia. But the caves were of inestimable importance to the area's native Aboriginal population and even contained 46,000-year-old traces of human habitation. The authorities had given permission, but the outrage forced the leadership of the company to resign in disgrace.
Stausholm was quickly moved in place to replace the chairman and was charged with solving the situation. His first move after arriving and the then two-weeks long quarantine because of Covid raging at that time, was to go meet the locals on site.
"They were incredibly nice to me," says Stausholm. They met him at the airport, he had dinner with them, and the next morning they set off in a group towards the gorge.
"Let's stand here in pain for a moment," Stausholm recalls the natives saying to him, as a blazing sun beat down on Juukan Gorge's iron-red earth and blasted rock caves.
"I think we stood there for a good half an hour," says Stausholm.
The case made it clear to Stausholm that local communities must be included in all parts of the mining operation. In other words, Rio Tinto's extraction must be a gain for the area's residents.
"Mining is not just a private investment. It is a societal choice. I expect my managers to talk to the local community in the areas where we mine. I represent the company, and therefore I often participate in ceremonies and meetings,' he explains.
Quote from Berlingske, conservative Danish newspaper
Predictions
This will end with Serbia accepting the mining operation. It is after all very profitable and points to a new future in the good company of EU. Some protests by the Russo-file old-schoolers in the country may give some further unrest, though.
A more long term concern is - that many batteries may not even be the future of the automotive industry, as the technology needs some further progress if it wants to satisfy the needs of other car owners than affluent Westerners that often buy EVs as their second car and with heavy government subsidies. Other, more energy-dense fuels are already on the way. Germany has been looking at Hydrogen as an alternative, though with mixed results. And big operations are built built to convert excess green electricity into fuels for traditional piston engines, jet turbines and other purposes such as heating. We will bring a post soon about the Power-to-X plants in Denmark and other places, producing fuel for the Methanol powered container ships and in principle also for cars with combustion engines.