Some big policy issues at play with lithium development

This is the stuff used to pull lithium out of brine, known as Plix.

In its continuing series on lithium development in Saskatchewan, there’s some significant issues. The first is commercializing a process known as Direct Lithium Extraction, without which the whole idea is going nowhere. The next issue is primacy of rights when it comes to mineral development – whose rights trump whom? And then there’s the government response to the rights issue. But if we can work these things out, there’s serious potential for a multi-billion dollar industry here on the bald prairie.

19 Replies to “Some big policy issues at play with lithium development”

  1. Brine extraction can’t compete on a cost basis with mining raw ore and chemical extraction. The cost difference is an order of magnitude in scale.

    Lithium ore is very common. Nevada is built in the stuff.

    So the price might look good now but in a few years this capital will be a stranded asset.

    Capital will flow to the lowest cost technology and avoid the high risk uncertain and high cost technology.

    Watch governments invest taxpayer money into unviable brine extraction and create yet another boondoggle.

    1. I understand lithium presents an opportunity similar to Bitcoin exchanges, e.g. FTX. Many players will experience a nearly unlimited upside.

    2. Are you talking South American style brine extraction, or what is being considered for Saskatchewan? Because the are entirely different. The footprint of a Saskatchewan-style is a few holes about 9 inches across, some pipes above ground, tanks and centrifuges in something that will fit in one of those big tents. That’s it. No giant hole, no giant tailings ponds. Are you factoring that in your equations?
      And the lithium explorers are expecting prices to come down, and aiming for that price point. But they sure look nice now, don’t they?

  2. “…..there’s serious potential for a multi-billion dollar industry here on the bald prairie.”

    China licks it’s lips.

  3. By the time the mines are operational, a new technology will probably have replaced Li-ion, like Na-ion.

    1. Any new technology will have to trump the fact lithium is the lightest metal, period. There’s no getting around that. So whatever miracle science they might come up with, and it can happen, it has to beat the periodic table. And that’s a huge deal. Because the heavier the battery, the more power you need to move the entire apparatus, meaning a yet bigger battery.

      1. You are not up to speed on sodium batteries Brian.
        You can be in second place on the periodic table but substantially ahead in first place on cost per kWh.

        1. Na-ion batteries have been around since the 1980s. Why are they not the standard? Are they waiting for a technology miracle?

        2. Lithium has an atomic weight of 6.94, while sodium is 22.9, three times as heavy. So, yes, second place on the periodic table is still a long ways to catch up. Whatever benefits sodium might have, it has to make up for that difference.
          I’m not saying I know everything by a long shot. But I write about this stuff a lot, and this is very first time I’ve heard any reference, anywhere, to sodium batteries. So either I’m missing everything, or there’s really not much being said about sodium batteries. Take that for what you will.

          1. Brian, check up on CATL, the largest battery company in the world and the main supplier to Tesla. They are scaling up massive sodium battery plants right now and will start production at massive scale in a few months. The bottom line is the bottom line. Sodium is cheap and abundant. It has high energy density and charges fast. It’s great in cold weather and the electrolyte doesn’t burn.

            There will be a place for lithium but as sodium displaces most of the lithium space, the cost of lithium will drop to compete with sodium as hiho says below. The brine guys, with all due respect, and I do respect what they are trying to do, don’t have a hope in hell.

          2. Also, Brian, look up how much lithoum is used in a li-ion cell.
            It’s less than 10% of the cell weight. Na-ion cells can use aluminium instead of copper, saving a bunch of weight.

            “I’m not saying I know everything by a long shot. But I write about this stuff a lot, and this is very first time I’ve heard any reference, anywhere, to sodium batteries.”

            Gimme a break, the tech has already hit the market.

      2. Li-ion is mature, and gets about 200Wh/kg.
        Na-ion is in its infancy, and gets about 160Wh/kg.
        Na-ion costs about half as much to get to market as Li-ion.
        Na-ion batteries can use a non-volatile electrolyte, drastically reducing the fire risk.
        Sure, Li-ion will still have a place, but you can bet that the price of lithium will drop as Na-ion tech reaches maturity.

        1. Rechargeable Li-ion batteries were developed in the 1970s, Na-ion in the 1980s. I read that Tesla is testing Na-ion but nothing in production. So what is the problem with Na-ion that has taken 50 years to figure out. I was buying Li-ion batteries from Israel in the late 1980s.

          1. So what?
            It takes time for a tech to mature.
            Na-ion can use much of the same manufacturing tech that Li-ion uses.
            Now, show me your 1988 Li-ion drill battery pack that was included in every drill.
            As I remember, even into the 1990s, NiCd batteries were still used in corddless tools.
            Tech advances, deal with it.

  4. They are still shitty lithium batteries that are about ready for our carbon free future as our infrastructure is.. We need more time and a couple of breakthroughs.. 100 years on the inside.. But hey, tapping into the free money green bandwagon might work if it were in Quebec.. Those jobs and that economy matter..

    I would expect no help from Ottawa and nothing but stop and start grief from the natives.. Its the Canadian way..

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