Electric car growth sparks environmental concerns

Lithium is currently extracted from brines beneath the deserts of South America and evaporated using the energy of the sun. But an increasing proportion is coming from crushing rock in Australia and processing the mineral in China, which is more energy intensive. Goldman Sachs expects capacity addition by hard rock to be equal to brine by 2020 in order to meet demand from electric vehicles. In addition, most of the new supply is coming from smaller mining companies rather than established players, according to Francis Condon, an energy and mining analyst at fund manager RobecoSAM. “We’re starting to see new sources being found and smaller mining companies and also nonmining companies getting involved,” says Mr Condon. “Some of these opportunities are arising where environmental codes are not as strong and social settings not as protective or inclusive. It’s a combination of risks.”