Lithium v ESG

[Haamsaaveni (Hamsi) Kumar]

In today’s daily, it was mentioned that former chairman of Polymetal has been hired by lithium mining start-up Cornish Lithium as well as another story on Britain’s battle to become a lithium powerhouse as the world moves towards electric cars. Will lithium take off as expected or will ESG-conscious investors press the break on this enthusiasm?

Let us know what you think!

[Andrew Spencer]

Interesting question! I saw that last month British Lithium produced Lithium Carbonate from granite, marking this first time that this has been done commercially. This method of extraction is considered sustainable, so perhaps a balance can be found with ESG. Moreover, this is apparently the only lithium production facility in the world that will be quarrying and refining on the same site, which is great from an ESG standpoint.

Also, as Lithium Carbonate is a key component of Lithium batteries, and all UK car manufacturing will convert to electric vehicles, I think even less sustainable Lithium production will need to increase to meet targets.

[Haamsaaveni (Hamsi) Kumar]

Thanks, Andrew for highlighting the fact that it could work with ESG-conscious investors as well as the fact that less-sustainable production of lithium may increase due to demand. I think it highlights how there’s so much grey area within ESG in itself, whether its between the letters or whether it is for the benefit of current or future consumers.

[Author]

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