Lithium: the new gold rush

clock • 1 min read

Initiatives to render our world greener and its air less polluted, are multiplying across countries. Major cities such as Paris have decided to ban diesel-powered vehicles by 2025 to tackle global climate change and CO2 emissions issues.

One solution to curbing CO2 emissions can be found in the use of electric vehicles. Like many devices on which we already depend, electric vehicles run on lithium-ion batteries, and their use will only increase in future according to RobecoSAM, who for 20 years has been a leader in sustainability research and investments.

Mass production of lithium-ion batteries remains the ultimate path to achieving higher penetration of electric vehicles, benefiting the lithium value chain, RobecoSAM argues.

So strong is RobecoSAM Pieter Busscher’s conviction for lithium, he’s allocated 15% of the RobecoSAM Smart Materials Strategy’s assets towards companies along the entire lithium value chain–from mining to batteries.

RobecoSAM’s Smart Materials theme focuses on innovative materials that improve the efficiency of production processes and usage. Lithium is increasingly used in electrical storage, a key technological area supporting management of renewable energies, vehicle electrification and off-grid power.

Stricter regulations regarding global climate change and CO2 emissions are among the critical drivers for energy-efficient vehicles and the lithium that power them—regulations that are expected to increase with time.

As with most mining processes, Lithium extraction has raised environmental and social concerns. To address this, RobecoSAM has established an internal lithium policy framework to ensure environmental compliance and corporate governance in countries where lithium mining firms operate.

To read more about the RobecoSAM Smart Materials Strategy’s lithium play, download the content below.