"The energy transition is driving demand for batteries; funding from the Inflation Reduction Act and other federal programs is helping to fill it."
"Add lithium to water in a chemistry lab, and you’ll get an incendiary reaction. The same might be said of opening new lithium mines: The prospect can spark conflicts when it comes to water.
Mining companies and the U.S. government are investing in increased extraction for lithium, which is a critical component in some renewable energy technology, especially electric vehicle batteries and large grid-scale storage batteries.
The IRA injected the Department of Energy (DOE) Loan Programs Office with about $11.7 billion to support new loans for energy projects, including mines for needed metals like lithium. This builds on earlier Bipartisan Infrastructure Law (BIL) grants for battery material supply chains. The IRA also offers tax credits of up to $7,500 on eligible electric vehicles, creating additional demand for lithium by the auto industry.
With funding from the IRA, DOE and BIL, lithium miners have gained new financial vigor and governmental votes of confidence. Yet some worry what impact this newfound funding will have on the environment."
Elyse Hauser reports for Floodlight, co-published by Energy News Network, July 18, 2024.
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