This could seriously affect the UK government’s attempts to electrify the nation. The government has already promised to ban sales of new gasoline and diesel vehicles by 2030, with a ban on sales of new hybrid vehicles in 2035.
However, these plans are heavily dependent on a boom in the electric car industry and the corresponding infrastructure.
Due to the increased demand for electric cars, the demand for lithium could triple to one million tons per year by 2025.
Experts fear that this dramatic change could come too soon, as it takes a lithium mine between five and seven years to discover, develop and operate the mine.
Chris Berry, president of strategic metals consultancy House Mountain Partners, warned that global electrification efforts could slow down without major investment.
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He said: “The dramatic growth in electric vehicle sales in the UK is in danger of slowing without a clear path to additional supplies of lithium and its associated battery metals.
“In addition to the sales, UK automakers risk being left behind by their Chinese, US, German and Japanese car counterparts, who are in a race to ensure their electrical supply chain is in place for the rest of the decade.
“The horse is clearly out of the stable and the UK auto industry has recognized that its future lies in successfully electrifying its vehicle fleets.
“The success of this transformation lies in ensuring a secure supply of battery raw materials, including lithium.”
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A typical lithium mine produces around 30,000 tons per year, which means four new mines would have to be created every year to keep up with demand.
The UK is currently one of the fastest growing electric vehicle markets in Europe, with plug-in vehicles accounting for 11 percent of the UK market.
Sales of battery electric vehicles (BEV) rose by 186 percent to 108,000 vehicles.
Even so, the Competition and Market Inspectorate (CMA) has asked the government to ensure that electric vehicle charging stations are modernized.
Ana Cabral-Gardner, co-chair of lithium producer Sigma Lithium, said: “The race is on to meet the growing demand for high quality lithium that is environmentally friendly and inexpensive to produce before a potential deficit for the mineral arises.
“The world is accelerating efforts to become greener than the mining industry is able to sustainably produce battery grade lithium.
“UK consumers want their products to be environmentally friendly from extraction to production to distribution – neither are many mining companies currently able to supply this.”
It is estimated that expanding the lithium producing industry could require tens of billions of pounds to expand.
This could lead to a massive rise in the price of both lithium and a subsequent rise in the price of electric vehicles.
