© John Moore/Getty ImagesA lithium mine supervisor inspects an evaporation pond of lithium-rich brine in the Atacama Desert on August 24, 2022 in Salar de Atacama, Chile
Lithium is the essential mineral for renewable energy resources, and is gearing up to become to the 21st century what coal was to the previous two centuries.
The mineral is the key material in producing lithium-ion batteries, which power everything from mobile phones to electric cars. More importantly, it is deemed to be a "pillar for the fossil-fuel free economy" by the United Nations, seen as the primary way to store energy in the clean power grids of the future.
As such, lithium has become one of the most sought-after commodities with its price surging by over 500% in the past two years.Geopolitical currents are driving a scramble for the precious mineral by world powers.
There's a fight over who controls supply chains, started by the US, which has rejected globalization and is seeking to reassert its influence over critical global goods by forcibly re-shoring them and undermining competitors (a key aspect of its approach towards Russia and China).With its dominant position over renewable energy goods and technologies, China has become the focus of the Biden administration's efforts to regain a lead in the industry.
Washington's more competitive posture has seen the two countries at odds over who can locate and exploit lithium deposits around the planet. Whoever controls the supply chain will dominate the industry.
Comment: Turkey dismisses NATO membership bids with Sweden, Finland, as "meaningless"