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A potential European Commission (EC) act to classify lithium as a Category 1A reproductive toxin in this year’s fourth quarter could undermine the European Union (EU)’s attempt to create and support a domestic battery materials supply chain.

The EU currently relies heavily on imports of lithium to supply its nascent electric vehicle (EV) production sector and the classification may increase its reliance on other regions, at a time when the union is focused on energy security and reducing emissions. Europe has announced plans to expand lithium battery-grade Li Carbonate production from nothing today to 8.3% of global production by 2025, according to Rystad Energy research.

Europe has similar ambitions for lithium hydroxide, which is crucial for long-range EV batteries. Even without the potential decision by the EC, it will still fall well short of closing the estimated 218% deficit gap in lithium hydroxide processing that Europe is facing by the end of 2030, according to Rystad Energy research. The European Chemicals Agency (ECHA)’s Risk Assessment Committee (RAC) at the end of 2021 published its opinion that it agreed with French proposals to classify three lithium salts as Category 1A reproductive toxicants. It determined that lithium carbonate, lithium hydroxide and lithium chloride should be classified under the Classification, Labelling & Packaging (CLP) Regulation as substances that may damage fertility and unborn children. It also agreed that the substances may harm breastfed children.

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