Contrary to popular belief, lithium is not as easily obtainable as some industry leaders claim.

Myth 1: Lithium is abundant and easily accessible.
Lithium is abundant in geological terms, as it is found in low quantities all over the world, including in ocean water with a content of 0.14-0.25 ppm. However, this abundance should not be confused with the ease of economically extracting high-purity lithium for battery production. To produce batteries, high-purity lithium carbonate or hydroxide is needed, and the higher the grade of ore, the lower the extraction cost. For example, cut-off grades for lithium resources in production or development range from 400 ppm to 69,000 ppm.

Myth 2: When demand for lithium increases, production can easily increase.
This notion is also false. Increasing production is not as simple as turning a tap. The following issues contribute to this:

• New mines take time to build, with a lead time of over a decade to complete necessary stages and permits.
• Each lithium resource is unique, requiring individual flowsheets to be configured and verified.
• The lithium market is different from other commodities and is sold through individual contracts between suppliers and end users, tailored to specific customer requirements and extensive end-user testing before any deals are made. This makes OEMs reluctant to switch suppliers or new players in the lithium market.
• The gap between current production capacity and forecasted demand for lithium by 2030 is significant.