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American Resources Policy Network
Promoting the development of American mineral resources.
  • European Commission Expands Critical Raw Materials List (U.S. Government, Are You Listening?)

    Earlier last month, the European Commission released an updated list of critical raw materials in the context of the European Union’s “Raw Materials Initiative” – a project put forward in 2008 to tackle challenges associated with raw material access. 
    The 2017 list is an update and expansion of the Commission’s 2014 list, identifying 27 raw materials “with a high supply-risk and a high economic importance to which reliable and unhindered access is a concern for European industry and value chains.”

    According to the Commission’s official communication,

    “The list should help incentivise the European production of critical raw materials through enhancing recycling activities and when necessary to facilitate the launching of new mining activities. It also allows to better understand how the security of supply of raw materials can be achieved through supply diversification, from different geographical sources via extraction, recycling or substitution.” 

    The list, which was expanded by nine over the 2014 iteration, can be viewed here

    Followers of ARPN will recognize many listed materials as ones we have treated on our blog. Many – among them Indium, Gallium, Cobalt, Germanium, Vanadium, Scandium and the Rare Earths — are what we have dubbed Co-Products accessed largely by way of Gateway Metal production.   

    Meanwhile, in the United States, individual agencies have begun to take their own steps to measure mineral resource criticality and to address associated issues, but on the whole, our nation – in spite of the fact that our mineral resource dependencies have deepened over time and constitute a “clear and present danger” – is still a far cry from formulating a comprehensive mineral resource strategy. 

    The EU appears to have realized that “[r]aw materials, even if not classed as critical, are important for the (…) economy as they are at the beginning of manufacturing value chains. Their availability may quickly change in line with trade flows or trade policy developments underlining the general need of diversification of supply and the increase of recycling rates of all raw materials….” Europe seems to have made the connection between metals and minerals access and modern manufacturing. U.S. Government, are you listening?

     

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  • Moores’ Law: The Rise of Lithium Ion Battery Megafactories and What it Means for Critical Mineral Resource Supply

    Earlier this month, Simon Moores, Managing Director of Benchmark Mineral Intelligence and member of the ARPN panel of experts testified before the full U.S. Senate Energy Committee on opportunities and risks in the energy storage supply chain.  

    We’re titling his observations as Moores’ Law — which is his for the taking, given the placement of the apostrophe. If he hasn’t used it yet, he should.
     While we already featured Moores’ top line points regarding the rise of Lithium Ion megafactories (also see the chart), we would be remiss if we didn’t share some of his takeaways on the implications for the main critical raw material inputs for this technology – namely Lithium, Graphite, Cobalt, and Nickel — and add some additional thoughts. 

    Lithium

    • For Lithium carbonate and Lithium hydroxide, the “base chemicals that the battery industry seeks,” Benchmark Mineral Intelligence sees a 10-fold increase in the industry’s demand profile over a ten-year timeframe. Lithium is largely sourced from Chile, Argentina and Australia, and is processed into battery grade in the U.S. and China. 

    • Meanwhile, in a recent op-ed for the Reno Gazette Journal, professor emeritus of mining engineering at the University of Nevada, Jaak Daemen, citing an even higher demand profile increase for Lithium, argued that with only one Lithium mine in the U.S., the United States is unprepared to meet demand with the main problem not being the lack of resources, but “a regulatory approach that endlessly delays bringing mines in production.” 

    Graphite

    • Lithium Ion technology uses both naturally mined flake Graphite as well as synthetic Graphite, in which the former accounts for roughly 60% of inputs, and the latter for roughly 40%. According to Moores’s testimony, China dominates natural flake mining at 62% of global production in 2016, followed by Brazil at 23%.  A similar scenario unfolds for refining, most of which also takes place in China. 

    • According to Moores, “[w]hile large flake graphite mines are being developed outside of China in Mozambique, Canada and the US, processing capacity to make anode material is still lagging.”

    • As we previously highlighted, the U.S. currently produces zero Graphite, with the last American Graphite mine having closed 25 years ago. 

    • As Moores points out, however, two Graphite companies are currently seeking to mine and process flake graphite for battery grade material in the U.S., so there is hope the supply picture will change domestically.

    Cobalt

    • According to Moores, 64% of the Cobalt consumed globally in 2016 was mined in the Democratic Republic of the Congo (DRC), with China dominating the “refining step in the supply chain with 57% of global capacity.”

    • With Cobalt also being a Co-Product to Gateway Minerals like Copper and Nickel, Moores argues that “the fortunes of Cobalt – now driven by battery demand – is still at the mercy of Nickel and Copper commodities which is drive by industrial demand. This is causing long term planning issues for the EV supply chain.”

    • You can read ARPN’s latest blog item on Cobalt here

    Nickel

    • With advances in battery technology and changing formulas, Moores sees battery grade Nickel demand grow “from 75,000 tpa in 2016 to anywhere between 300-400,000 tpa by 2025.” 

    • Nickel production is in the million of tons a year, and from a U.S. point of view, the supply picture recently changed with our import dependence dropping from roughly 50 percent to currently 25 percent with new domestic projects having come online.  

    • However, as Moores points out, “the battery grade chemical material is specialist with only a handful of major producers outside of China.”

    Ultimately, this is food for thought for any discussion regarding the comprehensive mineral resource strategy our nation sorely needs.

    Says Moores:

    “Where we stand today in 2017, China is not only a the center of mass market EV development and deployment but also of cathode production, battery grade raw material refining and the building of the new battery cell capacity.  Those that control raw material and chemical / cathode refining know how and capacity will control the lithium ion battery supply chain. And those that control the lithium ion battery supply chain will be the biggest influencers on the next generation auto and energy industries.”

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  • The Surge of EV Technology and Implications for Mineral Resource Supply and Demand

    You may have caught Elon Musk’s exchange with Daimler on Twitter over investment in EV technology earlier this week. Vacuum giant Dyson has also tossed its hat into the ring announcing that it will spend $2.7 billion to develop an electric car. The headlines are piling up, and it’s no longer a secret that demand [...]
  • Graphene-fed Spiders and Our Web of Resource Dependencies 

    A material long hailed as being on the cutting edge of materials science, Graphene is making headlines again. And, fitting for fall and people gearing up for Halloween, it involves everyone’s favorite creepy crawlies – arachnids.  Researchers at the University of Trento in Italy have found that spiders fed with graphene and carbon nanotubes, which [...]
  • China Jockeys for Pole Position in EV Industry

    ARPN followers know it’s the elephant in the room. China. Already vast and resource-rich, the country has demonstrated an insatiable appetite for the world’s mineral resources and has pursued an aggressive strategy to gain access to the materials needed to meet the world’s largest population’s resource needs. Thus, it comes as no surprise that China [...]
  • Lithium – A Case In Point for Mining Policy Reform

    In a recent op-ed for the Reno Gazette Journal, professor emeritus of mining engineering at the University of Nevada, Reno, Jaak Daemen makes the case for comprehensive mining policy reform.   Citing the arrival of electric vehicles in which “battery technology is catching up with the hype,” he cautions that benefits benefits associated with the [...]
  • Why Cobalt Should be High on Your Radar

    In a recent article, the Financial Times zeroes in on one of the metals followers of ARPN will know is becoming increasingly indispensable to 21st Century clean energy technology: Cobalt.  Once an obscure metal you rarely heard about, this co-product of Nickel and Copper is increasingly afforded “critical mineral status” – primarily because of its [...]
  • Africa Taking Center Stage in China’s Quest for Resources

    It is “the single largest source of mineral commodities for the United States, particularly for resources like rare earth elements, germanium, and industrial diamonds,” according to the United States Geological Survey, which notes in its most recent Mineral Commodity Summaries report that “of the 47 mineral commodities that the United States is more than 50 [...]
  • Rhenium: “Alien Technology” Underscores Importance of Gateway Metals and Co-Products

    At ARPN, we have consistently highlighted the importance of Gateway Metals, which are materials that are not only critical to manufacturing and national security in their own right, but also “unlock” tech metals increasingly important to innovation and technological development. With advancements in materials science, these co-products, many of which have unique properties lending themselves [...]
  • Urban Mining – No Panacea but Important Piece of the Resource Strategy Puzzle

    Advances in materials science continue to transform the way we use metals and minerals, and in doing so, also change the supply and demand scenarios for many materials. As we recently pointed out on the ARPN blog, demand for Cobalt has been soaring thanks to its applications in battery technology and the growing popularity of electronic [...]

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