By Anand Sheth, Founding Chairman
Lithium is widely recognised as an essential enabler of the low-carbon transition through its applications in electric vehicles (EVs) and energy storage systems (ESS). Emissions are reduced by switching to renewable energy, using less carbon intensive fuels and through process efficiency improvements. However, to achieve the full potential of the energy transition a considerable investment in mining lithium and other raw materials will be necessary and the extraction, refining and conversion are energy-intensive, often electricity-dependent, and increasingly scrutinised for their life-cycle greenhouse gas (GHG) footprint. How, then, do we square this circle?
The International Lithium Association (ILiA) has been an advocate of the energy transition and responsible mining since it was founded in 2021. In line with this, and as a member of the International Council on Metals and Mining (ICMM), ILiA’s vision is supportive of market mechanisms that drive sustainability, reduction of greenhouse gas emissions and that incentivise innovation. This includes carbon pricing, a key market-based policy mechanism to reduce these emissions cost-effectively and to steer capital towards lower-carbon technologies.
While many mining companies are already reducing their carbon emissions, whether they operate in carbon pricing jurisdictions or not, to work more effectively and fairly, carbon pricing would need to be applied more widely to create a more level playing field. Policy frameworks should be predominantly market-based (e.g. emissions trading systems or carbon taxes), technology-neutral and focused on outcomes rather than prescribing specific technologies, allowing innovation to determine least-cost pathways.
Together we can achieve the energy transition for a greener future.
