From lithium salt to electric vehicle batteries

Imagine that the energy that powers your electric car comes from salt. Put like that, it might sound like a creative idea from a science fiction plot or a pipe dream from an eccentric alchemist. However, the connection between batteries and salt is now a very tangible reality: technological and industrial advances, driven especially by the chemical sector, are effectively enabling a sustainable solution for the decarbonization of mobility – obtaining lithium from brine is creating a new production model to this essential material for electric vehicle (EV) batteries. And Portugal has a key role to play in this process.

How do you get from salt to EV batteries? The answer lies in an electrochemical process: electrolysis. In Portugal, Lifthium Energy is developing its electrochemical lithium refining project, which represents one of its greatest innovation milestones.

Lifthium is using Bondalti’s (one of its shareholders) extensive know-how in salt purification and 40 years of electrolysis and chlor-alkali experience to develop a refining process with a lower environmental footprint. While in the chlor-alkali value chain, electrolysis is applied to sodium chloride (brine), it will now be used on lithium chloride to produce lithium hydroxide. With this process, Lifthium estimates emissions to be 50% below the industry average.

Electrolysis is the centerpiece of a new, green approach to the lithium value chain. Unlike traditional, more resource-intensive methods, electrolysis can be powered by renewable energy sources such as solar or wind, significantly reducing the environmental impact. It is therefore a key technology to ensure that lithium production responsibly keeps pace with growing global demand.

Why is lithium so important?

Lithium is at the heart of the global energy transition. As the world moves towards a decarbonized economy, electrification of sectors such as transportation is crucial to achieving climate goals.

Electric vehicles, powered by lithium-ion batteries, are seen as one of the most promising solutions for reducing carbon emissions.

Shrinking margins, volatile battery metal prices, high inflation and the phasing out of purchase incentives in some countries have raised concerns about the pace of growth in the EV industry, but global sales figures remain solid.

According to the International Energy Agency Global EV Outlook 2024, global EV sales in 2024 are expected to reach around 17 million units, representing more than 20% of all cars sold worldwide. This expectation is based on the consistent growth in EV sales , which in 2023 already represented 18% of global sales.

The IEA also says demand for lithium and other critical minerals needed for batteries is set to grow significantly, with global EV battery capacity expected to increase 40-fold by 2040 to meet electrification and decarbonization goals. However, both the IEA and the World Economic Forum say current lithium supply may be insufficient unless new projects are accelerated along the value chain.

In addition to EVs , lithium batteries are essential for storing renewable energy, a cornerstone of the energy transition. The ability to store energy from sources such as the sun and wind is vital to ensuring a continuous and stable supply of clean electricity, directly contributing to reducing dependence on fossil fuels. The combination of energy storage and EVs can significantly reduce global carbon emissions, helping to keep global warming within the limits set by the Paris Agreement .

By supporting the energy transition, and doing so with a sustainable approach, Lifthium Energy shows that there is a path to clean energy without environmental tradeoffs . The use of electrolysis, with priority given to renewable energy sources to reduce the carbon footprint throughout the production chain, demonstrates that innovation can be an ally of sustainability, as we respond to the growing needs of the global market.

So the next time you see an electric car gliding silently down the street, remember: it’s not just consuming energy. It’s moving the world towards a greener, more sustainable future, thanks to lithium — the metal of the future, innovatively refined from salt. Companies like Lifthium Energy are showing that the transition to a low-carbon economy is not only necessary, but also feasible and full of potential.