Transformative Shifts in EV Infrastructure and Lithium Exploration: A Tale of US Investment and Ireland's Lithium Potential

Abstract:

In a bid to reshape the transportation landscape, the United States government has committed $623 million to propel the growth of electric vehicles (EVs). This significant investment, under the 2021 Bipartisan Infrastructure Law, aims to enhance the accessibility, reliability, and convenience of EV charging networks across the country. Meanwhile, Ireland is emerging as a key player in Europe’s battery supply chain with promising lithium discoveries. These developments are poised to impact the future of sustainable mobility profoundly. This report delves into the specifics of the US EV infrastructure grants, the current state and future projections of EV sales, and Ireland’s lithium exploration efforts. It also highlights the potential global impact of these initiatives on the EV market and the broader quest for sustainable energy solutions.

Empowering EVs in the US

The Biden administration grants, available through the 2021 Bipartisan Infrastructure Law, are geared towards supporting the increasing deployment of EVs.

Currently, there are over 4 million electric vehicles on American roads, according to the U.S. Transportation Department. However, progress on the EV charging network has been slow, with only New York and Ohio having operational charging stations. Meanwhile, Pennsylvania and Maine are expected to open EV charging stations early in 2024.

EV Unit Sales 2016-2028

According to Statista, around 11 million EV units were sold globally last year. This year, the EV market, including both battery and plug-in hybrids, is projected to reach a staggering $623 billion in sales worldwide. Such massive growth will lead to a market volume of $906 billion by 2028, with 17 million vehicle units sold.

With the grant, the U.S. aims to make EV chargers more accessible, reliable, and convenient for American drivers. This initiative is also expected to generate jobs in charger manufacturing, installation, and maintenance.

Of the total amount, $311 million from the Federal Highway Administration will support 36 community projects, including EV charging and hydrogen fueling infrastructure. The remaining $312 million will go to 11 recipients for projects along designated alternative fuel corridors. In total, the grants will fund 47 EV charging and alternative-fueling infrastructure projects across 22 states and Puerto Rico, leading to the construction of approximately 7,500 EV charging ports.

The recipients include the North Central Texas Council of Governments, the New Jersey Department of Environmental Protection, and the Maryland Clean Energy Center. These funds are part of the $2.5 billion Charging and Fueling Infrastructure Discretionary Grant Program under the infrastructure law, which has a broader goal of installing 500,000 EV charging stations in the U.S. by 2030.

Since January 2021, EV sales have quadrupled, and publicly available charging ports have increased by 70%, according to the Transportation Department. This figure represents only a third of the way to the current administration’s goal, with six years left.

Lithium Requirements for EVs

These bullish projections indicate an increased requirement for lithium, prompting Europe to ramp up its lithium exploration. By 2040, the projected lithium requirements for EVs are nearly 25 million metric tonnes.

Ireland’s Lithium Odyssey

Back in 1972, Irish Base Metals Ltd. identified traces of lithium in local granites during base metals exploration. However, the potential significance was overlooked at the time, as lithium was deemed “not of interest” and “not really a commercial mineral,” according to John Teeling, a former key adviser to Irish Base Metals.

The EU, heavily dependent on Australia for 87% of its raw lithium imports, is now keen on expanding exploration. The bloc’s Critical Raw Materials Act supports this move, with the EU-backed GreenPeg project considering southeast Ireland as one of three locations to study pegmatite ore deposits. Pegmatite lithium deposits, also known as hard-rock lithium deposits, contain extractable amounts of several elements, including lithium.

Ireland, historically significant as Russia’s third-largest alumina supplier in 2022 and home to Europe’s largest zinc-producing mine, has focused recent mineral exploration on other resources like copper, lead, zinc, and gold. S&P Global Market Intelligence data indicates only two established lithium projects in the country, Avalonia (Carlow) and Leinster (Wicklow).

John Harrop, senior project geologist at Canadian consultancy Coast Mountain Geological Group, which works on the Avalonia project, highlighted that, “If exploration is successful in Ireland, it is more likely to contribute a number of small- to medium-size lithium bodies similar to the clusters that are being explored and discovered elsewhere in Europe.” Harrop envisions Ireland becoming a contributor to lithium supply feeds for upcoming lithium processing plants in Europe. He further emphasized the potential for more discoveries in the Irish lithium belt.

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Arkle Resources, in a new lithium exploration effort, discovered pegmatites in its Mine River gold project in November 2022. This area is west of the Avalonia project, a joint venture established in 2014 by Canada’s International Lithium Corp. and China’s Ganfeng Lithium Group.

These developments come as Ireland faces challenges in building a lithium sector, including a shortage of skilled professionals experienced in recognizing hard rock lithium. One of the companies best prepared to take advantage of the looming lithium shortage is Li-FT Power (LIFT; LIFFF), the fastest developing North American lithium junior, with five different projects across Canada.

Conclusion

As the wheels of innovation turn, the convergence of substantial investments in EV infrastructure and Ireland’s lithium exploration signals a transformative era. The electrification of transport and the pursuit of sustainable energy solutions will shape the global landscape in unprecedented ways. The road ahead is charged with potential, both electric and lithium-powered.