Lithium—The White Gold of the Energy Transition As the world races toward electrification, one element has emerged as the cornerstone of the...
Lithium—The White Gold of the Energy Transition
As the world races toward electrification, one element has emerged as the cornerstone of the green revolution: lithium. Often dubbed “white gold,” lithium powers the batteries inside electric vehicles (EVs), smartphones, laptops, and renewable energy storage systems. Demand is skyrocketing, and countries are scrambling to secure supply chains.
In a surprising twist, Indonesia—long known for its nickel and coal—has discovered lithium deposits in one of its most infamous disaster zones: the Lapindo mudflow in Sidoarjo, East Java. This revelation could reshape Indonesia’s role in the global battery ecosystem and offer a second chance for a region once devastated by industrial failure.
What Is Lithium and Why Is It So Valuable?
Lithium is a soft, silvery-white metal that belongs to the alkali group. It’s highly reactive and has excellent electrochemical properties, making it ideal for rechargeable batteries.
Key applications include:
EV batteries (lithium-ion cells)
Energy storage systems for solar and wind power
Consumer electronics (phones, laptops, tablets)
Medical devices and aerospace components
Global lithium demand is projected to quadruple by 2030, driven by EV adoption and renewable energy expansion. Countries like China, Australia, and Chile dominate production—but new players are emerging.
Lapindo’s Lithium: A Hidden Resource Beneath the Mud
Between 2020 and 2022, Indonesia’s Geological Agency conducted sampling in the Lapindo mudflow area. The results were unexpected:
Lithium concentrations ranged from 86 to 280 ppm (parts per million)
The mud also contained strontium and rare earth elements (REE)
The site remains active, with ongoing mud emissions and methane gas release
While the lithium content is modest compared to major deposits in Chile or Australia, the fact that it exists in a waste stream—rather than a traditional mine—opens up new possibilities for sustainable extraction.
How Does Lithium Extraction Work?
Lithium is typically extracted in two ways:
Hard Rock Mining (e.g., spodumene in Australia)
Involves crushing rock and chemical processing
High energy and water usage
Brine Extraction (e.g., salt flats in Chile)
Pumps lithium-rich brine to surface
Evaporation separates lithium salts
Lapindo’s mudflow presents a third pathway:
“Waste-based recovery,” where lithium is extracted from industrial byproducts or contaminated zones.
This method could be more environmentally friendly, especially if paired with closed-loop processing and minimal land disruption.
Indonesia’s Strategic Position in the EV Supply Chain
Indonesia already holds the world’s largest reserves of nickel, another key component in EV batteries. The government has banned raw nickel exports to encourage domestic processing and battery manufacturing.
Now, with lithium entering the picture, Indonesia could become a one-stop shop for battery materials.
| Material | Global Rank | Use in EVs |
|---|---|---|
| Nickel | #1 | Cathode material |
| Cobalt | #6 | Stability in batteries |
| Lithium | Emerging | Anode material |
| Tin | #2 | Soldering electronics |
During his presidency in 2024, Joko Widodo initiated discussions with Australia to explore joint ventures that would combine Indonesia’s abundant nickel reserves with Australia’s lithium resources for electric vehicle (EV) battery production. This proposal laid the foundation for Indonesia’s strategic push into the global battery supply chain. Under the current administration of President Prabowo Subianto, the momentum continues, with increased focus on domestic mineral processing and technological innovation. If the lithium discovered in Lapindo’s mudflow proves economically viable, it could significantly reduce Indonesia’s reliance on imported materials and strengthen local value creation across the EV and green tech sectors.
Environmental and Social Considerations
Lapindo is still a sensitive site. The mudflow displaced over 60,000 people and submerged 12 villages. Methane gas continues to leak, and the area remains geologically unstable.
Any lithium extraction must prioritize:
Environmental safety
Community engagement
Transparent governance
Benefit-sharing with affected residents
Experts suggest that pilot projects and academic partnerships could help test sustainable recovery methods before scaling up.
Global Lithium Market: A Race for Control
The lithium market is highly competitive and geopolitically charged. China controls over 60% of global lithium processing. The U.S., EU, and Australia are investing heavily in diversifying supply chains.
Indonesia’s entry could:
Attract foreign investment in green tech
Strengthen ASEAN’s role in battery production
Create export opportunities for processed lithium and EV components
Challenges and Next Steps
While the discovery is promising, several steps are needed:
Feasibility Studies: Determine economic viability of lithium extraction
Technology Transfer: Partner with countries experienced in lithium processing
Policy Framework: Create clear regulations for sustainable mining
Community Inclusion: Ensure local voices are part of the development process
Indonesia must avoid the pitfalls of past resource booms—exporting raw materials without building domestic capacity. Lapindo offers a chance to do things differently.
Conclusion: From Mud to Momentum
The discovery of lithium in Lapindo’s mudflow is more than a geological curiosity—it’s a symbol of transformation. What was once a site of destruction could become a pillar of Indonesia’s green tech future.
With strategic planning, ethical extraction, and global collaboration, Indonesia has the potential to become a regional leader in EV battery production. And for Sidoarjo, this could be the beginning of a new chapter—where innovation rises from the mud.
