Abstract
This article explores the multidimensional implications of lithium sustainability as a crucial raw material for achieving the transition to a post-carbon society. It emphasizes the need for a comprehensive strategy that integrates economic, environmental, and social dimensions to address the challenges associated with increasing lithium demand along the entire supply chain. Reflecting on the political implications, the article argues that intensified green policies in the Global North have detrimental consequences for communities in the Global South. This article further argues that ensuring a just transition requires a careful balance between economic benefits and environmental and social considerations along the entire lithium supply chain. Paramount for enhancing sustainability is the establishment of a robust connection between policy and the private sector. Furthermore, the article views the circular economy as a potential solution to reverse the current trend of worsening inequalities resulting from the impact of lithium on local and global sustainability.
Author: Karin Michalikova (Junior Researcher G.E.O. Environment)
Introduction
Although the terms "sustainable" and "green" are often used interchangeably, they carry distinct meanings. While, "green" primarily focuses on environmental aspects, "sustainability" refers to a more holistic approach that goes beyond environmental considerations, involving social and economic factors. It aims to maintain and support the long-term environmental, societal and economic well-being while safeguarding the needs of the future generations (Muralikrishna and Manickam , 2017). In the past few years, there has been a growing attention towards sustainability issues, specifically related to the sustainable management of raw materials essential for a successful transition to a green economy. An example of this recognition is the inclusion of sustainable development goal 12 in the sustainable development agenda, which highlights the importance of responsible production and consumption. With the significance of this subject in mind, this article aims to delve into the sustainability of lithium, a critical raw material for grid-scale energy storage and rechargeable batteries. Considering the projected 40-fold increase in demand for lithium by 2040 compared to the 2020 levels (IEA, 2021), it is important to shed light onto the challenges and advantages associated with the substantial surge in lithium demand. Hence, the primary objective of this article is to explore the various dimensions of lithium sustainability, with a specific focus on its local and global perspectives. By examining the interconnections between lithium sustainability and its potential implications for the future of politics and global (in)equality, the aim of this article is to present an understanding of this complex issue of lithium sustainability.
Accessing the impact of lithium on local sustainability
To assess the impact of the lithium supply chain on a local level, it is crucial to focus on the mining process. As the beginning of the supply chain, mining entails significant environmental, societal, and economic implications that adversely affect the local indigenous population. This too is a case of the communities from the ‘lithium triangle’, a shared territory by Chile, Argentina and Bolivia, that stores the biggest lithium reserves in the world. The evidence from the area demonstrates that the impacts of lithium mining in this region extend far beyond the emissions attributed to the fossil fuels utilized during the extraction process. While it has been found that mining a single tonne of lithium results in the release of approximately 15 tonnes of CO2 into the atmosphere (MIT Climate Portal, 2022), it is the local communities that endure even further environmental, social and economic costs of the lithium extraction.
From the environmental perspective, the process of lithium mining comes with major challenges such as water and air contamination, consequent to the usage of toxic chemicals that pose threats to the local ecosystem and biodiversity (Swain, 2021). However, the most significant impact of mining activities is the depletion of water resources caused by the excessive water consumption during the mining process. This is particularly impactful as the availability of freshwater in the communities is already scarce. These challenges are closely linked to social (un)sustainability, giving rise to various social challenges. As this already dry region becomes even drier, the communities and the local fauna and flora lose their supply of water, having to rely on the portable water delivered in tankers.
Additionally, concerns have been raised regarding the disregard for indigenous voices and the potential negative effects on their cultural heritage and local development. In the case of Chile, the government provided little support to the affected communities, therefore, the local people have been looking to the mining companies to facilitate their economic development (Messad, 2023). Yet, oftentimes the mining companies fall short of meeting local development expectations, resulting in community dissatisfaction and social tensions (Boddenberg, 2020).
In theory, lithium mining is expected to provide direct income and employment opportunities for local populations. It should further incorporate local industries through diverse economic linkages and boost the overall economic conditions within the region. Nevertheless, in practice, it often falls short of meeting local employment expectations, thereby generating economic disparities within the community. To demonstrate this, it is noteworthy that in the case of indigenous communities in the Atacama region of Chile, despite a significant overall increase of approximately 250% in mining employment, the total employment within the area actually decreased by 16% between the years 2012 and 2017. Moreover, the proportion of local labor engaged in mining decreased from 52% to 18% given the same time frame due to the domination of long-distance workers (Liu & Agusdinata, 2020). In contrast, agriculture was the primarily local labor in both periods, providing local employment to 78% - 85% of the local population (Liu & Agusdinata, 2020). However, a significant transformation has occurred in the local agricultural sector due to the scarcity of water caused by lithium mining activities. The local farmers have been facing a shortage of water resources, leading to increased economic hardships and a decline in the number of viable farming operations. As a consequence, only a handful of local farmers are able to sustain their livelihoods (Boddenberg, 2020).
Accessing the impact of lithium on global sustainability
In evaluating the influence of lithium on global sustainability, it is crucial to examine the stage of the lithium supply chain with the widest global implications. This entails analyzing its end product. If we look at the data regarding the supply chain from the area of the “lithium triangle”, we observe that as of 2017, the majority of lithium mined, accounting for 59%, was utilized in battery manufacturing, while 38% was used in electric vehicles (Sticco, 2021).
When considering the implications of lithium on global sustainability, particularly in relation to lithium-ion batteries as a critical component enabling the widespread adoption of renewable energy, it becomes evident that there are significant positive effects.
From an environmental perspective, the implementation of renewable energy for electricity generation results in a significant reduction of greenhouse gas emissions, with a decrease of 90-99% compared to coal-fired plants, and a substantial decrease in pollution by 70-90% (Scandrett, 2017).
In terms of social sustainability, the widespread adoption of renewable energy has a profound impact on public health. The World Health Organization (WHO) reports that approximately 99 percent of the global population breathes air that exceeds quality limits, posing health risks. Additionally, more than 13 million deaths annually are attributed to avoidable environmental factors, including air pollution (UN website). It is important to emphasize the link between health and overall well-being, as research indicates a significant negative correlation between poor health and emotional, social, and psychological well-being (Stegeman, 2014).
The economic aspect of global sustainability is exemplified by the creation of numerous green energy jobs, with a particular focus on local employment. The transition to locally or county-based construction of sustainable energy infrastructure not only generates employment opportunities but also stimulates economic growth. This approach redirects financial resources from fossil fuel imports to the materials and labor required for the maintenance of sustainable energy facilities. Renewable energy has the potential to bring about significant long-term benefits in terms of electricity and energy costs for both residential and commercial sectors. Not only are these energy sources readily available at low to no cost, but they also prove to be more economically efficient compared to traditional energy resources like power plants. For instance, each dollar invested in renewables creates three times more jobs than in the fossil fuel industry (UN website). According to the International Energy Agency (IEA), the transition to net-zero emissions is projected to result in a net gain of 9 million jobs, as approximately 5 million jobs in fossil fuel production may be lost by 2030, but around 14 million new jobs would be created in the clean energy sector (UN website).
The implications of the interplay between local and global sustainability tensions of lithium
Recognizing the constraints of the aforementioned analysis (such as the environmental concerns associated with the deployment of renewable energy, including the effects of wind turbines on wildlife fatalities, as well as social resistance to renewable energy infrastructure), it is evident that a distinct dichotomy exists in terms of the impact of lithium at the local and global scales. This distinction aligns with the production and consumption aspects of the lithium supply chain. When examining lithium production, specifically in the context of mining, there are significant challenges in achieving local sustainability. However, in terms of consumption, the advantages outweigh the obstacles, enabling us to globally perceive the use of lithium-ion batteries for renewable energy storage as a sustainable endeavor.
The significant difference between local and global sustainability trends of lithium has implications for power distribution and influences international politics. This stems from the territorial division between production and consumption sides of the lithium supply chain. The territorial dimension specifically involves countries like Australia and Chile, known for their significant lithium exports, and countries like the United States, Europe, and Japan that are the biggest importers of lithium-ion batteries (manufactured in China) (Garside, 2023). However, it is projected that the countries within the "lithium triangle," which possess large reserves (67% of global lithium reserves) while increasing their exports, will emerge as the leading lithium exporters in the future.
The territorial divide underlines the persisting and expanding division between the global South that bears the cost of the unsustainable practices of lithium mining and the Global North which enjoys the environmental, social and economic benefits of the consumption side of green energy. This perspective highlights the potential for an increased global North/South gap in the future, prompting us to consider the power dynamics within the lithium market when examining the sustainability of lithium across its supply chain. Specifically, the unequal development over time and space among those involved in lithium production versus consumption raises important questions. It is argued that the current inclination towards green politics, primarily in the global North, may already have and could further amplify imperialist tendencies in the pursuit of sustainability (Brand and Wissen, 2021).
Will the expansion of renewable energy storage in the Global North exacerbate local sustainability challenges for communities near lithium mines in the Global South?
To explore this question, let us consider a specific case, namely the dynamics between the European Union and lithium-rich countries in South America.
The EU places primary emphasis on ensuring the sustainability of batteries introduced to the European market (EU Commission, 2022). The latest European approach specification predominantly addresses the carbon footprint associated with batteries across the entire supply chain. This data will be utilized to establish distinct performance classes and ultimately define a maximum CO2 threshold for batteries entering Europe (Transport and Environment, 2023). Consequently, the responsibility for ensuring sustainability along the supply chain, particularly in the mining sector, is placed upon the private sector, specifically mining companies themselves.
The European approach, focused on calculating CO2 emissions to determine the eligibility of lithium batteries for the European market, primarily aims at projecting an environmentally friendly image without encompassing a comprehensive sustainability perspective. This approach will fall short in addressing the broader aspects of local sustainability, including issues like water scarcity that are interconnected with all dimensions of sustainability. Although mining companies might adopt alternative methods that produce fewer CO2 emissions, such as utilizing renewable energy instead of fossil fuels in order to extract lithium, the overall impact on local sustainability remains. Moreover, mining corporations often resort to financial compensation for the environmental damage caused in environmentally compromised areas, rather than implementing substantial changes in their practices to mitigate the impacts (CNBC, 2023). Therefore, these dynamics might lead to a further deepening of the uneven development between the European countries and the countries of the “lithium triangle”.
The EU has expressed interest in ensuring the local sustainability of lithium batteries in theory. Nonetheless, its approach as a political entity tends to be more passive. The EU is formally engaged in initiatives that promote the sustainability of lithium batteries, such as the EU-Latin America partnership on Raw Materials Alliance. This partnership aims to foster cooperation and shared sustainability values in developing raw material value chains for the clean energy transition, as seen through initiatives like the Mineral Development Network Platform. Despite these efforts, the EU's formulation of environmental policies for the entry of lithium batteries into the European market primarily focuses on the sustainability of the consumption side. This means that the EU's policies mainly address the sustainability of using lithium batteries as a final product. There is only a limited emphasis on considering the overall sustainability of lithium batteries, including their production. This further highlights the growing disparity in development between the European Union and the countries comprising the "lithium triangle."
However, there is hope to reverse this trend, as the European Union is committed to achieving complete lithium independence in the future. This ambition is linked to the substantial improvement of lithium recycling by establishing recycling facilities within the EU. Not only would this contribute to European raw mineral security, but it would also mitigate the challenges faced by local communities in Latin America.
Conclusive remarks: Approaching the issue?
As this article paints the conflict between the local and global sustainability challenges connected with lithium, it aimed to highlight the broad divide between the aspect of the production sustainability and the consumption sustainability of lithium. This broader perspective underscores the dichotomous perception of 'us' as the sustainable consumers and 'them' as the local communities in the Global South, who directly bear the consequences of the intensified green policies in the Global North. A notable finding from this analysis is that aspects of the energy transition are closely intertwined with two crises: the climate emergency and the crisis of inequality, both of which are addressed within the framework of sustainability discussed in this article. Another key imperative is addressing these dual crises together.
The examination of lithium sustainability highlights the prediction that achieving a just transition necessitates a balance between economic benefits and environmental and social considerations along the entire supply chain to ensure long-term sustainability. However, this is a complex matter. It appears that if the future actions of the European Union fail to establish a robust connection between policy and the private sector to enhance sustainability, fundamental aspects of our material production, chemical processes, and manufacturing practices will remain largely unchanged. Consequently, it becomes challenging to predict whether the reliance on the private sector as the primary driver of sustainable practices, given the current state of the European lithium battery approach, will yield the optimal outcomes to combat global inequality boosted by the lithium race. Without increased emphasis and specifications of requirements about the placement of lithium-ion batteries on the European market, and further definition of sustainability, it is increasingly likely that existing inequalities may be exacerbated.
Moreover, the European initiatives should extend beyond international solidarity. To secure the future sustainability of raw minerals in general, and lithium in particular, it is crucial to expeditiously adopt the principles of the circular economy. However, within the circular economy framework, equal emphasis should be placed on all its implications, including the reduction of overconsumption, to mitigate the significant disparities along the lithium supply chain. However, given the current state of affairs, it appears that the territorial divide is likely to persist, potentially accelerating the global North/South divide.
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