Executives of the U.S. auto industry – flanked by their cadre of lobbyists – are now busy begging lawmakers for handouts. So far, GM, Ford and Chrysler have failed to present a strong case for using taxpa
yer money in their resuscitation. We know that Wagoner (GM), Mulally (Ford) and Nardelli (on behalf of Cerberus Capital, owner of Chrysler ) will get one more chance to prove their case once Obama takes office, if not sooner. And regardless of whether the “big 3″ automakers end up filling their golden chalices with federal money, a mandate stipulating an increase in the production of plug-in electric cars will emerge. This much is sure.
So it seems that this is an opportune time to consider what the next era of America’s auto industry might usher in. Let’s start by taking a quick trip back to high school chemistry class since the future of the auto industry and the new fleet of next generation cars starts with the letters “Li” on the periodic table.
The element lithium is one of nature’s more flexible atoms. Lithium salts were used during the 19th century to treat various ailments and millions of people around the world today rely on it to treat psychosis and manic-depression. Lithium is also used as an industrial agent to kill algae and to filter carbon dioxide from the air in spaceships.
Lithium is the lightest metal and the least dense solid element and because of this it is very effective in heat transfer applications used in rechargeable and primary batteries because of its high electrochemical potential, light weight, and high current density. A lithium-ion battery is the “engine” (non-combustion of course) of today’s electric cars and will likely remain so in the foreseeable future.
Last Friday, NPR’s Morning Edition ran a story cautioning that the rush to build electric cars could also translate into a dependency on minerals that are mined in unstable parts of the world. Many of these countries are even less reliable trading partners than the Persian Gulf states we now rely on for our current energy needs. If plug-in electric vehicles are to become widespread around the world – as they can and should be – a stable source of battery technology will be necessary to power this new fleet. For better or worse, lithium is it at the moment. But is there enough of it around to power tomorrow’s fleet? And where will it come from?
In an article titled “Electric Vehicles and World Lithium Supply” (October 13, 2006), one expert concluded there was insufficient lithium to produce an equivalent of 500 million cars worldwide. However, as it was acknowledged in the article, the total amount of lithium in the world is a matter of debate and some analysts think there is much more of it available than previously thought.
The U.S. has substantial lithium reserves – mainly in Nevada – but like oil most of the world’s reserves lie elsewhere. The majority of the easily extractable lithium right now comes from the high altitude plains along the Andes mountains. Chile is currently the leading lithium metal producer in the world and Argentina and Bolivia are the next largest. Russia and Serbia also have significant supplies. And China may emerge as a significant producer in a couple years with untapped reserves residing in Qinghai province and the Tibetan plateau. There are also substantial supplies coming out of war-torn Democratic Republic of Congo.
Many of these countries pose serious geopolitical risk for companies and their investors due to the potential for labor and human rights controversies. Since the origin of many of the world’s lithium reserves are in countries where the rights of workers are not protected and whose governments regularly propagate (or overlook) human rights abuses, consumers of i-phones, watches and yes, cars, should expect companies to enforce rigorous global responsible supplier standards along all points in their production cycle.
Given their tremendous purchasing power, the major automakers in the U.S., Japan and Korea can have an important role in improving the lithium mining operations in countries like the DRC, Bolivia, China, Russia and Serbia. My hope is that Pelosi, Reid and other lawmakers on Capital Hill will consider this point in forming a bailout package for the auto industry. Congress has great leverage with the industry right now and should make the most of it to improve the conditions of working people in these developing countries. Doing so would protect the long-term interests of shareholders of companies operating in these politically sensitive countries and help restore America’s image abroad.
We need to shift away from gas guzzlers to electric cars, and fast. There is no doubt about this. But amidst this necessity, it is important to understand that there will always be challenges, even among the best options available. There are no easy solutions in our energy future.
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Uncle B 02.23.09 at 1:14 pm
The astounding Chinese have epoched the great GM, of U.S.A. in producing an Electric/gas/plug-in car! They are driving them in the streets of China as we speak, they will be retailed in the U.S.A. by 2011, they will cost half the price of a “Volt” and they are “On Order” for Israel! GM take a deep breath, your naughty parts have just been cut off by a Chinese high-tech competitor, and the “Volt” is still “Vapor-ware”! Hope to see the Chinese car in Canada soon, may be we could assemble it here for China and share in the wealth! We build motors for Honda in Ontario, Canada and can make Chinese manufacturers a very good offer! See:http://www.cleantech.com/news/3983/chinas-byd-sells-first-mass-produced-plug-cars