A Blog for Browsing Mining, Mineral Processing, and Metals Info

The global trade war will shift from fossil fuels to metals and raw materials. Russia’s invasion of Ukraine highlighted the risk of relying on autocratic states for energy. Even if Europe’s gas crisis eases, Western manufacturers’ focus will switch to reducing China’s dominance in materials key to a cleaner economy.

Europe needs to cumulatively spend $5.3 trillion on clean energy projects by 2050. That requires a sixfold increase in the global production of copper, lithium, graphite, nickel and some rare earths by 2040, International Energy Agency estimates show. Yet China dominates the processing, and to a lesser extent the extraction, of many critical industrial ingredients. It refines 58% of lithium produced globally, 65% of cobalt and over one-third of nickel and copper. Ostracised Russia is also big in nickel, palladium and cobalt. Europe, which imports between 75% and 100% of most metals, looks particularly vulnerable.

In response, Western companies can strike deals with suppliers in friendly countries, open mines at home, or boost recycling. The first approach is the fastest and is underway. In 2022 carmakers have ramped up partnerships with mines and invested directly in mining projects. General Motors took a stake in Australia’s Queensland Pacific Metals to secure nickel and cobalt for green SUVs.

Read more at: https://www.reuters.com/breakingviews/east-west-battleground-will-shift-metals-2022-12-23/

China’s dominance over the supply of rare-earth minerals and other materials—which are critical for energy transition and defense technologies—should spur U.S. policymakers to bolster raw materials supply chains, according to a new report from Rice University’s Baker Institute for Public Policy.

The China Rare Earth Group, a merger of three of China’s state-owned enterprises into one mega-conglomerate, controls of up to a quarter of global mineral-bearing rare-earth elements (REE). Combined with China’s overall dominance in rare-earth minerals and materials—roughly 60% of world production—the merger grants Chinese central planners significant pricing power and influence over world supply, explain co-authors Michelle Michot Foss and Jacob Koelsch.

The authors argue that the U.S. and its allies must divorce strategic industries from Chinese REE.

Read more at: https://phys.org/news/2022-12-disconnect-strategic-chains-china-experts.html

The tycoon at the center of this year’s nickel crisis is building a new plant for metal that can be delivered on the London Metal Exchange — a move that signals his intention to keep trading on the embattled LME while seeking to avoid being caught out by short squeezes in the future.

Tsingshan Holding Group Co., the giant metals company owned by billionaire Xiang Guangda, is the world’s largest nickel producer. However, the intermediate forms of nickel it produces for the stainless-steel and battery industries can’t be delivered against contracts on the LME, which only accepts refined metal.

Read more at: https://www.bloomberg.com/news/articles/2022-12-19/nickel-tycoon-plans-new-plant-to-avoid-future-lme-short-squeezes?leadSource=uverify%20wall

This memorandum of understanding that we’re about to sign signals the support by the U.S. Government for what is a very important project between these two countries.  Different government agencies, USAID, Commerce, the Trade and Development Agency, are exploring technical assistance for the EV supply chain.  Our EXIM Bank, the Development Finance Corporation, will be exploring financing and support mechanisms for investment in African electric vehicle value chains.

So this is I think an important moment to take note of a truly important initiative for the future not only of the DRC and Zambia, not only for Africa, but potentially for the world, as more than anything we’re together in combating the climate crisis, together in developing new renewable sources of energy, together also in building out economies for the future.  This is a part of it.

Read more at: https://www.state.gov/secretary-blinken-at-an-mou-signing-with-democratic-republic-of-the-congo-vice-prime-minister-and-foreign-minister-christophe-lutundula-and-zambian-foreign-minister-stanley-kakubo/

GODI India, the first Indian company to get BIS certification to sell lithium-ion cells developed and produced locally, today announced beginning production of India’s first-ever 5.2 Ah 21700 cylindrical lithium-ion cells with an energy density of 275 Wh/kg based on silicon anode technology. The electrode composition has been indigenously developed as per the market requirement.
The company claims that with the use of silicon in the anode, an electric vehicle could achieve a greater range, up by 15-20% compared to graphite, on a single charge due to the increased energy density.
With a lithium-ion cell market size of USD 5 billion projected for electric two-wheelers by 2030, GODI believes that silicon is the future of energy storage as it can store nearly 10 times the energy compared to the traditional graphite anode.

However, it comes with close to 400% of volume expansion during its charge and discharge process making it difficult to stabilise. GODI India states that it has a water-based electrode manufacturing process to stabilise the silicon, which has been successfully utilised in the manufacturing of the 5.2 Ah lithium-ion cells.
“We are delighted to announce the manufacturing of 5.2 Ah lithium-ion cells at our Hyderabad facility. We have already delivered 5.0Ah cells to top six OEMs in India and planning to deliver 5.2Ah cells in the near future,” Mahesh Godi, Founder and CEO of GODI India, said.

Read more at: https://timesofindia.indiatimes.com/auto/policy-and-industry/ev-battery-cell-manufacturing-in-india-godi-begins-production-of-5-2-ah-lithium-ion-cells/articleshow/96173913.cms

LONDON, Dec 1 (Reuters) – Activity in Chicago based CME Group’s cobalt futures has this year soared far above London Metal Exchange volumes, with sources citing major firms including top producer Glencore as users covering their exposure to the battery metal.

Consumers, producers, commodity traders, brokers and banks are backing the CME’s cash-settled contract as they want a liquid instrument to hedge cobalt, which has grown in importance due to its use in electric-vehicle batteries, which are crucial for meeting targets for cutting emissions.

Growing volumes for CME cobalt are expected to help the U.S. exchange win market share in contracts for other materials used in electric vehicles such as lithium and aluminium.

Read more at: https://www.yahoo.com/now/cme-cobalt-contract-soars-above-104023846.html

The US and Europe can cut their dependence on China for electric vehicle batteries through more than $160bn in new capital expenditure by 2030, Goldman Sachs has forecast. EV batteries are one of the core technologies giving rise to concern across western capitals over dependence on China.

Following years of deep state support and a desire by Beijing to cut its own reliance on oil imports, China produces three quarters of the world’s batteries and also dominates production of their materials and components. However, according to a report to clients, seen by the Financial Times, the investment bank’s analysts believe a stark pivot to protectionism in Washington and Brussels, combined with an unprecedented spending spree by non-Chinese companies, have the potential to extricate the west from its reliance on Beijing over the next seven years.

To obtain a self-sufficient supply chain, countries competing with China would need to spend $78.2bn for batteries, $60.4bn in components and $13.5bn in mining of lithium, nickel and cobalt, as well as $12.1bn in refining of those materials, the report calculated. The bank’s analysts believe demand for finished batteries could be met without China within the next three to five years, largely thanks to big investments in the US by South Korean conglomerates LG and SK, who have been attracted by massive subsidies from US taxpayers. LG Chem said on Tuesday it would invest more than $3bn to build a battery cathode factory in Tennessee, the biggest of its kind in the US. Goldman forecasts that the market share of the Korean battery makers in the US will soar to around 55 per cent in three years, from 11 per cent in 2021.

The passage of the Inflation Reduction Act in August means huge tax benefits and other subsidies for localising battery supply chains and fuelling the uptake of EVs. Goldman expects the “average eligible EV in the US” will receive more than $10,000 in benefits from the IRA.

Read more at: https://www.ft.com/content/458ebaf3-c1ee-499c-b7f3-2e5d7f1bb6df

The US and the Philippines will open talks on a deal for the Asian nation to build nuclear power plants with American technology, Vice President Kamala Harris announced.

In a bid to boost the supply chain for critical minerals, the US also will support development of a nickel and cobalt processing facility in the Philippines.

The facility will expand the Philippines’ production of refined nickel and cobalt by 20,000 metric tons per year and enhance sustainable development of those critical minerals, the White House said.

Read more at: https://finance.yahoo.com/news/us-philippines-negotiate-nuclear-power-220000147.html