Categories: Sustainability , Battery
Published 13 Sep 2022

The global energy crisis has strengthened the case for adopting electric heating technology in lithium refining, especially over the long term. You have a choice: continue using traditional natural gas, which is vulnerable to market fluctuations, or switch to electric heating systems that offer a more stable, future-ready solution.

Could the right decision come down to geopolitics and energy security?

Before the war in Ukraine, the arguments advocating electric heating in lithium refining centred on decarbonizing the supply chain, improving working environments, reducing NOx pollution, and gaining better control through automated electric heating.

But things have changed. What once seemed like marginal concerns are now top priorities for regulators and investors. Plant owners and operators worldwide are reassessing their options after an energy market shock not seen since the 1970s.

Energy security is now a priority

European benchmark gas prices surged to historic highs in 2022 and remained volatile into 2024. Although prices have cooled from their peak, they are still 2–3 times higher than pre-crisis levels. As of mid-2025, long-term futures indicate elevated pricing and persistent market uncertainty through 2026.

The Ukraine war has impacted the entire energy sector.

“In the 1970s, it was the oil crisis,” said Fatih Birol, Executive Director of the International Energy Agency, at the 2022 Davos meeting. “Now we have an oil crisis, a natural gas crisis, a coal crisis, prices are skyrocketing, and energy security is a priority for many governments.”

Since natural gas plays a major role in electricity generation, the crisis has also driven up electricity prices.

The rising cost of gas 

If you’re commissioning a lithium hydroxide or lithium carbonate plant, especially in regions affected by carbon markets or tariffs, you’ll need to consider the increasing cost of emitting CO₂, which raises the operational costs of natural gas.

Additionally, the U.S. Inflation Reduction Act of 2022, a USD 400 billion law designed to accelerate renewable energy adoption, promotes renewable infrastructure but also discourages new fossil fuel investments. This will likely keep gas prices high for the foreseeable future.

Electric heating offers long-term stability

Even if we put environmental considerations to one side, the long-term arguments favor electric heating in lithium processing.

CaptionSachin Pimpalnerkar, Global Product Manager, Kanthal.“These kinds of considerations are up for discussion now,” says Sachin Pimpalnerkar, Global Product Manager at Kanthal.

“Even with today’s high prices, the economics of transitioning to electrically powered drying can be marginal. But refiners under carbon market pressure, or those responding to customer demands for a decarbonized supply chain, will pay close attention.”

“Even if we put environmental considerations to one side, the long-term arguments favor electric heating in lithium processing”, he adds.

Easier permitting and siting flexibility

Another key factor is permitting. Electric kilns eliminate NOx emissions, making it easier to site plants in or near urban areas.

In jurisdictions with strict environmental standards, authorities are unlikely to approve new gas-fired kilns near population centers, where emissions would add to existing pollution from traffic or ports. Many cities already exceed allowed NOx levels.

Meanwhile, the CO₂ emissions from battery manufacturing, particularly cathode and anode production, which can account for up to 40 percent, support the case for siting plants in countries with low-carbon electricity grids. These are often the same countries leading in electric vehicle adoption and green tax incentives.

Electricity powers nearly all aspects of battery manufacturing, but the carbon intensity of electricity varies. In 2017, Chinese power generation produced 20 times more CO₂ than Sweden’s, and three times more than Brazil’s. This disparity affects total emissions: a plant in Sweden could reduce battery manufacturing emissions by 60 percent, while a facility in China, Poland, or India might increase them by 30 to 70 percent.

For manufacturers looking to integrate processes, these differences strengthen the cumulative case for electrically heated lithium refining.

“Environmental considerations tend to support siting plants where electricity is low-carbon,” notes Pimpalnerkar. “Interestingly, these are also places where new mineral deposits are being found and where the electric vehicle industry is growing, thanks to tax cuts and stronger environmental awareness.”

Good can always be better!

Efficient and sustainable heating processes are critical as the lithium-ion battery industry scales to meet surging demand. Kanthal’s electric heating technology boosts energy efficiency and productivity while reducing CO₂ and NOx emissions.

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