Lithium production in Chile
Lithium production – Albemarle Corp. opened an additional factory at its lithium production site in Antofagasta, Chile, as part of a strategy to help meet growing global demand for electric vehicles and high-tech devices.
The Charlotte, North Carolina-based company indicated that the project cost more than $100 million. The company did not disclose the capacity of the new plant, but said it would double the site’s lithium carbonate production.
Lithium production directly impacts grease market
Lithium derivatives are used as a thickener in approximately three-quarters of the world’s industrial greases, but competing demand for electric vehicle batteries has increased rapidly in recent years due to strong growth in electric vehicle sales. Lithium prices were strongly boosted up, prompting some grease suppliers to consider other thickener chemicals.
Electric vehicle (EV) batteries are now one of the biggest applications for lithium, and demand is expected to continue to increase rapidly in the coming years.
Consequently, companies across the world are struggling to increase production. Chile was previously the world’s largest supplier of the mineral, but has been overtaken in recent years by Australia and China. The South American nation still has by far the largest known reserves, and last year it announced an initiative to regain the top spot by opening bids aimed at increasing its production severalfold.
Water consumption raises concern
The plan generated some controversy, however, mainly around the issue of water consumption. In Chile, lithium is harvested from salt pans in the desert by making brines and then allowing the water to evaporate, leaving the raw mineral to be processed. Area residents, many of them indigenous, have complained that lithium operations consume too much water, leaving too little of the precious resource for them.
Albemarle officials said the new plant will reduce the impact on water resources. Among the equipment installed was a US$ 100 million thermal evaporator that recycles water, reducing its consumption by 30%.
“With this expansion, Albemarle is supporting the global energy transition and, at the same time, we are working together with local communities to support the economy, people and environment of the areas in which we operate”, said Ignacio Mehech, deputy -President President of Foreign Affairs and National Manager of Albemarle Chile, in a press release.
Albemarle is one of Chile’s two main lithium producers, along with SQM, a national company. Last year, neighboring residents tried to revoke the SQM license based on allegations that the company was extracting more water than it allowed. The company subsequently came up with a proposal to reduce its use.
