I recently came across an article from Nikkei Asia that documented a particularly embarrassing moment for the Thai government. It got me thinking about how easy it could be in our industry to similarly jump the gun on innovation, particularly with electrification.

On Jan. 18, a Thai government official announced a large deposit of lithium had been discovered in the country, billing it as the third-largest in the world. If true, this would represent a significant opportunity for the country’s EV industry, as demand for lithium has been on the rise. In fact, according to this report, global lithium production expanded 21% in 2022 to 130,000 metric tons.

However, the report says that just a few days later, “The deputy government spokesperson toned down the claim, saying that the ore contained only 0.45% lithium. The deputy spokesperson said this would still be enough to produce 1 million batteries with a capacity of 50 kilowatt-hours.” For context, New Holland’s electric T4 tractor introduced last year has a maximum energy storage capacity of 110 kilowatt-hours. 

This must have been a serious letdown to those involved with Thailand’s EV market, which — for a few days —would have seemed poised for explosive growth. 

For the record, the U.S. is in a similar situation, though we haven’t gotten a disappointing correction yet. A recent geological study from Science Advances indicated the U.S. may be sitting on one of the world’s largest natural deposits of lithium near the Oregon/Nevada border. The find, if estimates are correct, could boost the U.S. to first place from fourth in global estimated national lithium reserves and could notably lower the cost of electric equipment.

So what can we learn from this situation in Thailand? I believe our industry may be facing its own “Thailand lithium mine” situation when it comes to electric equipment, specifically compact tractors. Manufacturers are jumping into the mix, showing off prototypes and investing in research & development when the actual potential of this market doesn’t seem to have materialized yet. 

One indication the market may not be all that it seems are the tough times electric tractor manufacturer Solectrac is facing. Rural Lifestyle Dealer reported a few months ago on the company’s financial troubles and current search for a new investor. As one of the first on the scene with an electric tractor (founded in 2012), the company’s problems don’t bode well for those just taking their first steps into this arena. Monarch Tractor, another electric tractor manufacturer, also seems to also be in financial straits.

I’ve heard from many dealers in the meantime who see no demand for electric tractors among their customers and are skeptical about the real demand out there.

Time will tell if the market will see enough demand to handle over multiple electric compact tractor brands, and the development of this potential lithium deposit in the U.S. could play a significant role in that a few years down the road. But at the moment, it’s too early to tell if all this will materialize into a revolution in equipment propulsion.

So let’s learn from what happened in Thailand. Be careful jumping feet first into the “next big thing” and wait for those follow up reports that may save you from getting burned. 

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