Biden's EV Goals Are Under Threat By Nature

It's been just over a year since the Biden administration declared its goal for half of all vehicle sales in the USto be electric models by 2030, but it appears that the obstacles to achieving this feat may not be what we thought they were. Range anxiety, long charging times, and higher prices are common EV hurdles that have prevented many from taking the electric plunge, but a new report suggests that a shortage of the critical mineral lithium could stop that 2030 goal from happening. Besides lithium, there is also a potential shortage of copper which is used in EVs as a conductor.

"We'll [eventually] have enough [lithium], but not by that time," said Keith Phillips, CEO of Piedmont Lithium, in an interview withYahoo Finance Live. Phillips was referring to the industry's goals for electrification from 2030 and beyond. "There's going to be a real crunch to get the material. We don't have enough in the world to turn that much [lithium] production [...] by 2035."

A critical mineral that hasbecome far more expensive in recent times, lithium is required for EV production. Lithium and its compounds are also used for the manufacturing of lithium-ion batteries, still the most common battery type used in EVs and plug-in hybrids like the new Dodge Hornet PHEV,Chevrolet Bolt, and Nissan Leaf.

The average EV battery requires around 17 to 22 pounds of metal, and as EV adoption rates climb, production of these batteries has been placed under increasing pressure. Currently, Australia and Chile are the largest lithium producers globally, but the US is lagging in its ability to approve local production sites quickly enough.

Piedmont Lithium is one of a few companies that is looking to benefit from high lithium demand with plans to open a lithium processing operation in Tennessee with construction beginning in 2023. Also joining the race to secure North American-sourced lithium, Snow Lake Lithium has just announced a plan to produce enough lithium to power five million EVs as it develops the world's first all-electric lithium mine.