The International Lithium Association (ILiA) has said it is "gravely concerned" about proposals made by the European Chemicals Agency (ECHA) regarding the potential classification of lithium products as toxic.
ILiA has lobbied against the proposals privately for two years, but has now made its concerns public to ensure awareness of a potential problem for the development of a European lithium industry. ECHA's proposals would classify lithium carbonate, hydroxide and chloride as Toxic for Reproduction, Category 1a. Any resulting impact on the market could take up to two years to appear, leading to uncertainty for the nascent battery industry, ILiA told Argus.
"In Europe, an incorrect classification which is too high would risk making EU member states less attractive compared to other countries for lithium mining and refining projects," an ILiA representative wrote in an article for the organisation's membership newsletter. "Opening a lithium mine, a lithium refinery or a battery production plant in the EU would be more burdensome, with additional safety measures and uncertainties on permitting."
EU regulation is sometimes seen as the benchmark standard for the rest of the world, which means classification could impact other countries. But some countries disagree with the ECHA proposals, highlighted by a series of assessments and letters from Chile, Argentina, Australia, Canada and the UK, which ILiA provided to ECHA.
"These opinions demonstrate that there is no global scientific agreement on the classification and that other countries might reach different conclusions… with possible repercussions on trade relations and access to lithium in Europe," an ILiA representative said.
ILiA highlighted that some lithium projects in Europe have already been shelved for other reasons, with the US Inflation Reduction Act attracting investment away from the region and public protests halting lithium mines, as happened to UK-Australian firm Rio Tinto's Jadar project in Serbia.
Having the capacity to refine lithium is "crucial" for recycling lithium and providing the materials needed to grow the European battery industry, ILiA said.
