Germany Could Meet Its Lithium Needs From Domestic Sources, Study Says

A new study said Germany could have enough lithium to meet its long-term domestic needs. Sourcing domestic commodities would help its weakened automotive industry reduce reliance on imports – a welcome development in a deglobalized environment.

The study by the Federal Institute for Geosciences and Natural Resources and the Fraunhofer IEG Institute notes the potential of lithium extraction from deep underground waters.

Germany's reliance on lithium imports is notable. In 2023, the country imported €23.7 billion ($25.72 billion) worth of batteries, of which lithium-ion batteries accounted for 86%, according to the trade group ZVEI. Meanwhile, the German Raw Materials Agency estimates that, by 2030, the domestic demand will reach 170,000 metric tons of lithium annually.

According to Reuters, the study estimates that Germany holds up to 26.51 million metric tons of lithium, particularly in the North German Basin and the Central Thuringian Basin.

Much of this lithium could be extracted as a byproduct of geothermal energy production, offering a dual benefit of sustainable energy and critical mineral supply. Major corporations, including ExxonMobil XOM, have shown interest, with Exxon's subsidiary Esso Deutschland securing four exploration licenses in Lower Saxony.

Katharina Alms, the research leader at Fraunhofer IEG, told Reuters the development shows that surprisingly high lithium resources might be dormant underground.

Still, she acknowledged that variations in concentration levels and technical difficulties associated with extraction with low-permeability rock formations pose difficulties.

However, lithium dissolved in brine allows for direct lithium extraction (DLE). This method is more environmentally friendly than traditional evaporation ponds in places like Chile and Argentina, which require vast water and land.

Those necessities put one of the largest global greenfield lithium projects on hold, as Serbia's Jadar project contains lithium in mineral form. Rio Tinto's plans for pursuing traditional extraction methods faced protests over fears of ecological damage despite assurances of compliance with environmental regulations.

Yet, the DLE process reduces waste and speeds up lithium extraction, making it a more viable long-term solution that is more likely to pass Germany's regulatory hurdles, which, according to the OECD's analysis, rank among the most stringent in the developed world.

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