Electric-car race could strain lithium battery supply

Posted by Martin LaMonica

The headlong rush to create electric cars for green-minded consumers may come with a significant economic and environmental cost.

Lithium ion batteries--the same used in electronic gadgets and laptops--have become the preferred battery type for plug-in hybrids and electric cars now starting to come to market.

That swelling demand has some industry observers concerned that there will be a shortage of the metal lithium, the material used to make the batteries.

"You can solve the transportation problem but end up creating an equally vexing commodity problem," said Matthew Nordan, president of emerging technology consulting firm Lux Research. "It's a big concern."

In the short term, auto companies will be able to bring plug-in hybrid cars to market as planned in the next few years. Production of lithium has increased since the 1990s to meet the demand for batteries in power tools and consumer electronics, said Brian Jaskula, the lithium mineral commodity specialist at the U.S. Geological Survey. Prices over the past few years have increased steadily as well, he said.

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