TopSupply Chains for Electric Vehicles
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How the lithium supply chain works
Lithium Extraction
Lithium occurs in: hard rock, including spodumene; and in brines with different extraction methods:
Brine extraction involves pumping out brine and concentrating by solar evaporation
Hard rock (such as Spodumene) extraction involves digging out hard rock and concentrating it
The largest lithium producer is AUS, followed by CHL. CHN and ARG also produce while countries such as the USA, BRA and ZWE have reserves but production is currently low.
Lithium Processing
Lithium is processed into: lithium carbonate usually from brine or lithium hydroxide usually from spodumene. Both are used to make li-ion batteries.
Brine is processed into lithium carbonate with the addition of other chemicals; it can further be processed into lithium hydroxide
Processing of hard rock involves roasting and mixing with chemicals and can be transformed into lithium carbonate or hydroxide in one stage
Most processing takes place in CHN, with almost all spodumene processed through this route, although AUS is building processing capacity. CHL’s brine is mostly processed in country
Battery Manufacturing
Cathodes for li-on batteries are generally a mix of lithium and other minerals including nickel (N), manganese (M), cobalt (C) or iron (Fe). Ex: NMC111 batteries use lithium and an equal mix N, M, C.
Some batteries generally rely on lithium carbonate to make their cathodes (NMC111, NMC622, LMO) while others use lithium hydroxide (NMC811, NCA, LFP)
Battery manufacturing includes making the cathode, anode and electrolyte, as well as assembling the components to form a battery cell. Battery cells are then incorporated into battery packs composed of modules and protection systems that form the final battery.
Battery manufacturing today mainly occurs in Asia, especially in CHN, KOR and JPN, with growing production starting to occur in other regions, such as the EU and USA.
Vehicle Assembly
Vehicle assembly involves a range of different processes beyond the battery that are energy intensive to bring together different minerals found in an EV (e.g., chassis). The largest assembly locations are currently in CHN, EU and the USA.
After vehicle assembly is completed, a critical aspect of EVs is the source of energy used to power these vehicles. This aspect is not currently captured in the dashboard.
Shipping
Shipping is a key component of lithium supply chains for EVs. Minerals need to be trucked around mine sites, moved to ports, and shipped between countries.
Transporting millions of tons of minerals and EVs across the world has a large carbon footprint in total, but is only a small percentage of the emissions of any one EV.