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American Resources Policy Network
Promoting the development of American mineral resources.
  • 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 is also jockeying for “Pole Position,” as Robert Blain writes for China Daily Asia Weekly in what may well be one of the hottest commodity fields of our time: EV battery technology and the electric car industry as a whole – from “vehicle manufacturing and sales to battery technology.” 

    Demand for EV technology is surging in China, as electric and hybrid car sales are growing at a rapid pace. A recent survey cited in the article found that while Germany took the top spot for EV technology, China is emerging as an industry leader: “In industry, China has confirmed its pole position. The reason for this is the continuing rapid growth of the market, more than 90 percent of which is supplied with lithium- ion cells produced locally. This high local share is partly due to the fact that subsidies only apply where there is local value creation.”

     The article heavily quotes our friend and member of the ARPN panel of experts, Simon Moores of Benchmark Minerals. Moores believes that “there is no doubt China is the global hub for the electric vehicle revolution.” 

    He is quoted as saying: 

    “China is producing its own electric vehicles, but the export vehicles are first likely to be Western-branded ones. For example, [US electric-car maker] Tesla is looking to make batteries in a new Gigafactory near Shanghai. This is the first step in making Tesla EVs in China for the domestic and export market. VW [Volkswagen] has similar grand plan.”

    Ultimately, according to Moores, “for foreign car manufacturers to have power in the EV market, ‘they need to be in China.’”

    The article continues: 

    “China is also very well positioned in the production and export of lithium-ion batteries typically used to power electric cars. ‘China already produces the bulk of lithium-ion battery cathode material,’ said Moores. ‘It is locking up the lithium supply chain through Ganfeng Lithium and to a lesser extent Tianqi Lithium. It controls cobalt supply and battery grade refining and produces the vast majority of the world’s graphite anode material.’ Nearly 70 percent of all new lithium-ion battery capacity being built in new megafactory structures will be based in China, he said.”

    In a recent commentary for Investor’s Business Daily, our very own Dan McGroarty pointed out China’s prominent role as a lead supplier of the world’s mineral resources :

    “As noted by the U.S. Geological Survey, we are 100% import-dependent for 20 metals and minerals, and 50% or more dependent for another 50. As for where the U.S. obtains these metals and minerals it needs but does not mine, China is a leading supplier of 28 of the 50 — up from 21 just a year ago.”

    Time for policy makers to take note. We may not always be able to significantly reduce our reliance on foreign mineral resources, but where possible, we should work towards that goal – particularly when our lead suppliers are not the most reliable trading partners. We have several opportunities to do so – some of which McGroarty outlined in his commentary.  

    China will certainly remain a force to be reckoned with in the mineral resource realm, but Lithium and Lithium-ion technology represent a great case in point for comprehensive mining policy reform in the United States.

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  • EVENT: Experts to Discuss Critical Mineral Supply Chains and Energy Storage Revolution

    Our friends at Benchmark Minerals are back in town and they’ve done it again: The team led by Benchmark Minerals Managing Director and ARPN expert panel member Simon Moores has once more put together a great lineup for a half-day event in Washington, DC this Wednesday.

    Speakers like David Abraham, Director of the Technology, Rare and Electronics Materials Center, House Mountain Partners, LLC President and ARPN expert panel member Chris Berry, and USGS Material Flow Analyst Erin McCullough will be discussing the role of critical mineral supply chains in the 21st century industrial evolution, with a special emphasis on the energy storage revolution.

    If you’re in town on Wednesday, April 26, be sure to RSVP here.

    What:                   Benchmark World Tour 2017 Washington DC Event

    Who:                     David Abraham, Director, Technology, Rare and Electronics Materials Center
    Chris Berry, President, House Mountain Partners, LLC
    Erin McCullough, Material Flow Analyst, USGS
    Simon Moores, Managing Director, Benchmark Minerals
    Andrew Miller, Analyst, Benchmark Minerals
    Caspar Rawles, Analyst, Benchmark Minerals
     
    When:                   Wednesday, April 26
    12:30pm – roughly 4:00pm

    Where:                 Sasakawa Peace Foundation, USA
    1819 L Street, NW, #600
    Washington, DC 20036

    If you need any more convincing or would like to get a sense of what to expect, check out Simon Moores’s presentation from last year’s event.

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  • Cobalt – First Steps Towards Reducing Mineral Resource Dependencies?

    A recent piece for InvestorIntel zeroes in on a metal which, due to its growing use in battery technology, coupled with a challenging supply scenario is increasingly afforded “critical mineral” status – Cobalt. A co-product of Nickel and Copper, the metal’s recent history, as author Lara Smith argues, has been “chaotic.” ARPN agrees that about sums it up. Criticism regarding the [...]
  • Event: Benchmark Minerals World Tour Comes to Washington DC

    If you are based out of Washington, DC or happen to be in town on October 21, here’s an event you should not miss: Our friends at Benchmark Minerals, a U.K.-based price data collection and assessment company specializing in the lithium ion battery supply chain, are taking their Benchmark World Tour to Washington, DC.   ARPN expert and Benchmark [...]
  • Is Lithium the New Black?

    At a time when mineral commodities have been slumping, one material is proving to be the exception to the rule, leading many to hail lithium as “a rare bright spot for miners, amid cratering prices of raw materials tied to heavy industry such as iron ore to coal.”  Via our friend Simon Moores, managing director [...]
  • The “Electronification of Everything” Raises Specter of “War Over the Periodic Table”

    Via our friend and ARPN expert Simon Moores’ Twitter feed, we came across a three-part must-read series for Bloomberg View, in which author and policy expert David S. Abraham discusses the role of rare earths in today’s increasingly high-tech world.   Perhaps most interestingly, Abraham clarifies a common misconception in part two of the series: “Although [...]
  • Does Elon Musk Know Where His Giga-Metals Will Come From?

    ARPN followers are well-versed on the dangers of foreign resource dependency – a concern highlighted by Tesla Motors’ announcement earlier this year that the EV manufacturer will build a massive Giga-Factory in the American Southwest, with the goal of doubling global EV battery output by 2020. As ARPN’ers know, the next question is: Where will [...]
  • Tesla Motors’ Gigafactory to Drive Critical Mineral Demand

    The graphite, lithium and cobalt industries are set for major demand surges as Tesla Motors prepares to break ground on its super-battery plant, the Gigafactory, next month. The high-end EV manufacturer is looking to double the world’s battery output as it seeks to bring the production cost of battery packs down in a bid to [...]
  • What are China’s intentions for its graphite production?

    The following is a guest post by American Resources expert Simon Moores. Wide-reaching controls on China’s natural resources continue to be at the forefront of its shift to a high value economy. Already industries like rare earths and phosphate fertilizer are tightly controlled by government-forced regulation. The question remains whether graphite – the 9th most [...]
  • Lithium Supply & Markets Conference held this week

    Industrial Minerals, the London-based intellectual home of one of our experts, Simon Moores, is hosting a conference on Lithium Supply & Markets in Las Vegas this week. Over the past few years, Lithium has seen increased attention due to its relevance in battery technology. Lithium Carbonate is a key component in the manufacture of Lithium-Ion [...]

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