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Europe’s Lithium Challenge on the Road to Electrification

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The following content is sponsored by Rock Tech Lithium.

The Road to Electrification

The world is moving towards a cleaner future, one where we will likely see electric vehicles (EVs) dominating our highways and city roads.

In turn, increasing EV adoption will inevitably increase the demand for battery metals, the critical ingredients of lithium-ion batteries. With governments tightening emission standards and some planning to ban gas-powered vehicles completely, securing the supply of these minerals is becoming increasingly important.

Europe—the largest market for EVs—is well on the way to electrification, but it faces one big speedbump: lithium supply. The above infographic from Rock Tech Lithium outlines the lithium supply chain and Europe’s lithium challenge on the road to large-scale EV adoption.

The Lithium Supply Chain

Before lithium makes it into EVs, miners extract it from the ground and downstream companies convert it from its raw form into lithium chemicals for batteries.

According to the USGS, there are 86 million tonnes of lithium resources worldwide, but the majority of production comes from a few regions.

Country2020E Production (tonnes)Resources (tonnes)
Australia40,0006,400,000
Chile18,0009,600,000
China14,0005,100,000
Argentina6,20019,300,000
Brazil1,900470,000

Australia, Chile, and China collectively accounted for 88% of lithium supply in 2020. Australia, the largest producer, produces the majority of its lithium from hard-rock spodumene mines. In the Western Hemisphere, Chile is known for lithium evaporation ponds in the Salar de Atacama, its largest salt flat.

Refining lithium into battery-grade chemicals is just as important as resources in the ground. China, the third-largest lithium producer, also dominates the production of downstream chemicals—lithium carbonates and hydroxides—with over 80% of global refining capacity.

Due to concentrated mine production and China’s dominance in the supply chain, the rest of the world is dependent on imports from a few nations. Import reliance and the resulting lack of supply chain security are a cause for concern, especially as lithium demand rises.

Europe’s Rising Need for Lithium

The European Union (EU) aims to have at least 30 million electric cars on its roads by 2030. In addition, European countries have rolled out various incentives for EV adoption—from subsidies for manufacturers to tax benefits for buyers. Consequently, Europe is becoming a hub for EV and battery manufacturers.

In fact, the EU is expected to account for 18% of global battery manufacturing capacity by 2029, up from 6% in 2019. And this doesn’t account for the six new plants that Volkswagen is planning to build by 2030.

With a growing demand for EVs comes a rising need for lithium. According to the European Commission, relative to current supply levels, the EU will need 18 times more lithium by 2030 and 60 times more by 2050.

Without any large-scale domestic production, the EU is heavily reliant on lithium imports. This puts its supply security and sustainability at risk for the long term.

Tackling Europe’s Lithium Supply Challenge

In a bid to develop a domestic lithium-ion battery supply chain, the EU has taken up initiatives to support every stage, from sourcing raw materials to producing finished battery packs.

  • The European Raw Materials Alliance (ERMA)
    The ERMA aims to develop a resilient supply chain for critical minerals by strengthening domestic raw material production.
  • Financial support
    The EU is offering EUR6.1 billion (roughly $7.5 billion) in subsidies to develop the battery production supply chain.
  • The European Battery Alliance
    A network of more than 600 participants from the battery value chain, aiming to build a strong and competitive European battery industry.

EVs are a key part of Europe’s push towards decarbonization, and mainstream EV adoption requires a sustainable supply of critical minerals like lithium.

Alongside these initiatives, developing new sources of both raw materials and refined products will play a key role in solving Europe’s lithium supply challenge.

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Charted: The End-of-Life Recycling Rates of Select Metals

End-of-life recycling rates measure the percentage of a material that is recovered at the end of its useful life, rather than being disposed of or incinerated.

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A chart ranking the end-of-life recycling rates (EOL-RR) of commonly used metals in the economy, per 2021 data from the International Energy Agency.

Charted: The End-of-Life Recycling Rates of Select Metals

This was originally posted on our Voronoi app. Download the app for free on Apple or Android and discover incredible data-driven charts from a variety of trusted sources.

We visualize the end-of-life recycling rates (EOL-RR) of commonly used metals in the economy. Data is sourced from the International Energy Agency, last updated in 2021.

ā„¹ļø EOL-RR is the percentage of a material or product that is recycled or recovered at the end of its useful life, rather than being disposed of in landfills or incinerated.

Tracking recycling rates helps manage resources better and make smarter policies, guiding efforts to cut down on waste.

Ranked: The End of Life Recycling Rates of Select Metals

Gold has an 86% recycling rate according to the latest available data. Per the Boston Consulting Group, one-third of total gold supply was met through recycling between 1995–2014.

MetalEnd-of-life recycling
rate (2021)
šŸ” Used In
Gold86%šŸ’ Jewelry / Electronics
Platinum/Palladium60%šŸ”¬ Optical fibers / Dental fillings
Nickel60%šŸ”‹ Batteries / Turbine blades
Silver50%šŸ’ Jewelry / Mirrors
Copper46%šŸ”Œ Electrical wiring / Industrial equipment
Aluminum42%āœˆļø Aeroplane parts / Cans
Chromium34%šŸ½ļø Stainless steel / Leather tanning
Zinc33%šŸ”— Galvanizing metal / Making rubber
Cobalt32%šŸ”‹ Batteries / Turbine engines
Lithium0.5%šŸ”‹ Batteries / Pacemakers
REEs0.2%šŸ“± Mobile phones / Hard drives

Note: Figures are rounded.

Several factors can influence metal recycling rates. According to this International Resource Panel report, metals that are used in large quantities (steel) or have a high value (gold) tend to have higher recycling rates.

However, for materials used in small quantities in complex products (rare earth elements in electronics), recycling becomes far more challenging.

Finally, a metal’s EOL-RR is strongly influenced by the least efficient link in the recycling chain, which is typically how it’s initially collected.

Learn More on the Voronoi App

If you enjoyed this post, check out Critical Materials: Where China, the EU, and the U.S. Overlap which shows how critical materials are classified within different jurisdictions.

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Technology Metals

Mapped: Ukraine’s Mineral Resources

Ukraine claims to hold nearly $15 trillion worth of mineral resources.

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This map shows Ukraine's mineral resources according to data from the Ukrainian Geologic Survey.

Mapped: Ukraine’s Mineral Resources

This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.

An anticipated minerals deal between the United States and Ukraine was not signed today after a contentious Oval Office meeting between President Donald Trump and Ukrainian President Volodymyr Zelensky at the White House.

The proposed Reconstruction Investment Fund references “deposits of minerals, hydrocarbons, oil, and gas”. Most notably, the Trump administration has shown interest in rare earth reserves—a group of 17 chemically similar elements critical to manufacturing high-tech products, including loudspeakers and computer hard drives.

The data for this graphic comes from the Ukrainian Geologic Survey.

Ukraine’s Untapped Resource Potential

Ukraine claims to hold nearly $15 trillion worth of mineral resources, making it one of the most resource-rich nations in Europe. The country is home to the continent’s largest reserves of lithium, titanium, and uranium.

  • Titanium – Used in aerospace and military applications
  • Graphite – Essential for battery production
  • Lithium – A key component of lithium-ion batteries
  • Beryllium – Vital for defense and telecommunications
  • Rare Earth Elements – Crucial for electronics, renewable energy, and defense industries

According to data from the Ukrainian geologic survey, Ukraine possesses 5% of the world’s mineral resources, including 23 of the 50 materials deemed critical by the U.S. government. These include:

ElementReserves (tonnes)Global Production (%)Reserves Global/Europe
Carbon18,600,000 t4%#5
Manganese140,000,000 t1.6%#4
Iron6,500,000,000 t1.5%#8
Beryllium13,900 t--
LithiumClassified-#1 (Europe)
TitaniumClassified7%#9
UraniumClassified2%#1 (Europe)

Geopolitical and Economic Implications

Access to Ukraine’s resource wealth could strengthen U.S. supply chains and reduce reliance on China, which dominates rare earth processing. However, securing investment and ensuring stable extraction remains a challenge amid the ongoing conflict with Russia.

Learn More on the Voronoi AppĀ 

If you enjoyed this topic, check out thisĀ graphicĀ that visualizes the top 10 donors to Ukraine between Jan 24, 2022, and July 31, 2023.

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