Thursday 18th July 2019

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Posts tagged ‘aluminum’

Infographic: Climate Smart Mining and minerals for climate action

March 14th, 2019

sponsored by the World Bank | posted with permission of Visual Capitalist | March 14, 2019

Climate Smart Mining Minerals for climate action

 

Countries are taking steps to decarbonize their economies by using wind, solar and battery technologies, with an end goal of reducing carbon-emitting fossil fuels from the energy mix.

But this global energy transition also has a trade-off: to cut emissions, more minerals are needed.

Therefore, in order for the transition to renewables to be meaningful and to achieve significant reductions in the Earth’s carbon footprint, mining will have to better mitigate its own environmental and social impacts.

Advocates for renewable technology are not walking blindly into a new energy paradigm without understanding these impacts. A policy and regulatory framework can help governments meet their targets, and mitigate and manage the impacts of the next wave of mineral demand to help the communities most affected by mining.

This infographic comes from the World Bank and it highlights this energy transition, how it will create demand for minerals and also the Climate Smart Mining building blocks.

Renewable power and mineral demand

In 2017, the World Bank published The Growing Role of Minerals and Metals for a Low Carbon Future, which concluded that to build a lower carbon future there will be a substantial increase in demand for several key minerals and metals to manufacture clean energy technologies.

Wind
Wind power technology has drastically improved its energy output. By 2025, a 300-metre-tall wind turbine could produce about 13 to 15 MW, enough to power a small town. With increased size and energy output comes increased material demand.

A single 3 MW turbine requires:

  • 4.7 tons of copper

  • 335 tons of steel

  • 1,200 tons of concrete

  • 2 tons of rare earth elements

  • 3 tons of aluminum

Solar
In 2017 global renewable capacity was 178 GW, of which 54.5% was solar photo-voltaic technology (PV). By 2023, it’s expected that this capacity will increase to one terawatt with PV accounting for 57.5% of the mix. PV cells require polymers, aluminum, silicon, glass, silver and tin.

Batteries
Everything from your home, your vehicle and your everyday devices will require battery technology to keep them powered and your life on the move.

Lithium, cobalt and nickel are at the centre of battery technology that will see the greatest explosion in demand in the coming energy transition.

Top five minerals for energy technologies

Add it all up, and these new sources of demand will translate into a need for more minerals:

 

  2017 production 2050 demand from energy technology Percentage change (%)
Lithium 43 KT 415 KT 965%
Cobalt 110 KT 644 KT 585%
Graphite 1200 KT 4590 KT 383%
Indium 0.72 KT 1.73 KT 241%
Vanadium 80 KT 138 KT 173%

 

Minimizing mining’s impact with Climate Smart Mining

The World Bank’s Climate Smart Mining (CSM) supports the sustainable extraction and processing of minerals and metals to secure supply for clean energy technologies, while also minimizing the environmental and climate footprints throughout the value chain.

The World Bank has established four building blocks for Climate Smart Mining:

  • Climate change mitigation

  • Climate change adaptation

  • Reducing material impacts

  • Creating market opportunities

Given the foresight into the pending energy revolution, a coordinated global effort early on could give nations a greater chance to mitigate the impacts of mining, avoid haphazard mineral development and contribute to the improvement of living standards in mineral-rich countries.

The World Bank works closely with the United Nations to ensure that Climate Smart Mining policies will support the 2030 Sustainable Development Goals.

A sustainable future

The potential is there for a low carbon economy, but it’s going to require a concerted global effort and sound policies to help guide responsible mineral development.

The mining industry can deliver the minerals for climate action.

Posted with permission of Visual Capitalist.

‘The great enabler’

January 16th, 2019

A new era of energy depends on mining and especially copper, says Gianni Kovacevic

by Greg Klein

A new era of energy depends on mining and especially copper, says Gianni Kovacevic

 

Gold and precious metals can attract people seeking wealth or beauty, while diamonds and other gems convey an intrigue of their own. But who becomes downright passionate about a base metal? To those who’ve head him talk, Gianni Kovacevic quickly comes to mind. Copper’s his metal of interest but his real fascination is the future—that, and a vision of the importance this metal holds to a new era of energy history.

Chairperson of CopperBank Resources CSE:CBK, an authority on energy systems and author of My Electrician Drives a Porsche?, he’s an especially engaging public speaker who’s possibly more effective than anyone in communicating mining’s importance to non-mining people.

A new era of energy depends on mining and especially copper, says Gianni Kovacevic

The era of electrification offers promise to both
developed and emerging economies, says Kovacevic.

But those in the industry find his message captivating too. He calls mining, metals and especially copper “the great enabler” of electrification. And electrification’s the key to a new era in which copper usage will grow by magnitudes, he declares.

That’s happening already as developed countries wean themselves off fossil fuels and emerging countries use more and more electricity for consumer items and transportation or—from village to village and home to home—as they adopt electricity for the first time.

Among other vital metals are aluminum, lithium, vanadium and cobalt. “I like anything that enables electrification,” Kovacevic explains. “The sensitive one is cobalt. If people are talking about reducing cobalt in batteries or eliminating it altogether, who wins? Nickel. But no question about it, we will require hundreds of millions, in fact billions, of new battery cells.”

Overall, approximately 19% of energy use now comes from electricity, he says. But he expects the number to reach about 50% by 2050. His data for current and planned copper production, however, shows alarming shortfalls in capacity.

Half of the world’s primary copper production now comes from 25 mines. Just two countries, Peru and Chile, provide a combined 45%. One major copper mine, First Quantum Minerals’ (TSX:FM) Cobre Panama, has commissioning planned this year. Nothing else over 110,000 tonnes is expected until around 2022.

A new era of energy depends on mining and especially copper, says Gianni Kovacevic

First Quantum’s Cobre Panama will be the only
major new copper mine until about 2022, Kovacevic says.

In 2010 the 15 largest copper producers boasted average grades around 1.2%. The 2016 average was 0.72% and falling. Over the next half-century he expects average grades to slip below 0.5%.

Clearly more copper production will require much higher prices to make lower grades economic, Kovacevic emphasizes. He’s not alone in that outlook. Among others extolling the metal’s virtues is Robert Friedland, who also considers copper the key to electrification and maintains that declining grades will require higher prices.

Over the last nine months, however, prices haven’t co-operated. In late May spot copper approached a five-year high in the range of $3.30 a pound, but fell steeply after June 1. Current prices sit around $2.60 to $2.65, although that’s well above levels seen through most of 2015 and 2016. But Kovacevic says warehouse inventories suggest the market has reached a supply deficit.

Two decades of prices show an ironic connection with the commodity that fueled the previous energy era, he adds. “Copper’s never left its long-term bull market but it’s been pushed around by oil, because 90% of the time it’s correlated with oil. But now the prices have to decouple. Copper has to go much, much higher.”

Referring to himself as a “realistic environmentalist,” Kovacevic says the metals and mining crucial to the new energy era also remain crucial to emerging societies. Blocking new mines from development hinders new economies from development. “I can’t say to someone in India, for example, that they’re never going to have electricity or running water in their homes. You can’t say ‘build absolutely nothing anywhere near anyone.’ People want basic human progress. Fortunately, as we go into this new pivot of energy we’re going to bypass the old ways of receiving energy in many applications.”

Kovacevic expands on his message in an illustrated keynote speech and also hosts a lithium investment panel discussion at the Vancouver Resource Investment Conference on January 20 and 21. To avoid the $30 admission fee, click here for free registration.

Old Testament turf begets newly identified mineral

January 7th, 2019

by Greg Klein | January 7, 2019

Northern Israel’s Mount Carmel is known for a more miraculous event, but that’s where a company exploring Biblical lands for material riches has made a novel discovery. On January 7 London-listed Shefa Yamim announced a new mineral named carmeltazite won official recognition from the International Mineralogical Association.

Old Testament turf begets newly identified mineral

Imperfections within the unique Carmel
sapphire can hold a newly discovered mineral.

The new entity came to light within the company’s trademarked Carmel sapphire. Made up of titanium, aluminum and zirconium, carmeltazite “is part of the remarkable mineral assemblage” found as tiny inclusions or impurities in the gemstone, the company stated. While not exactly the most compact abbreviation, carmeltazite can be denoted as ZrAl2Ti4O11.

Shefa Yamim also claims distinction for the Carmel sapphire itself, described as “a newly discovered type of corundum… unlike any other sapphire found in the world.” Typically black, blue-to-green or orange-brown in colour, it has so far manifested its largest size at 33.3 carats. That stone came from an area proximal to the River Kishon, associated with Old Testament stories of the Canaanites’ defeat.

Nearby Mount Carmel gained fame when a miraculous fire helped the prophet Elijah upstage Ahab and the idolatrous worshippers of Baal. Shefa Yamim’s exploration focuses on the mountain’s volcanic sources and the river’s alluvial prospects. The company expects to begin trial mining at its Kishon Mid-Reach project this year, targeting diamonds, rubies, moissanite and hibonite, in addition to its proprietary sapphire.

While the Carmel stone has yet to prove itself among buyers of bling, other sapphires have prompted pecuniary appreciation. A late November Christie’s auction achieved its maximum pre-sale estimate of $15 million for a necklace comprised of 21 Kashmir sapphires that outshone the accompanying 23 cushion-shaped diamonds. Originating in a mine that closed in 1887, the exceptionally rare sapphires were collected over a period of more than 100 years prior to the necklace’s creation.

As for rubies, the gems “have seen a more-than-fourfold price increase per carat in the past four years, with the finest rubies fetching $1 million per carat for the first time, as much as top-tier diamonds,” Bloomberg reported in November.

Buying rubies a decade ago would be “like someone who bought Google stock in Year 3 versus buying it now,” Seth Holehouse of the Fortuna auction house told the news agency. Chinese demand has helped push prices, especially for red rubies and other gems in red.

Driven largely by previous ownership, a pearl and diamond pendant that once belonged to Marie Antoinette sold for $36.16 million at a November Sotheby’s event. The auctioneer had hoped for a mere $2 million.

Overwhelming majority puts Quebec in new hands, New Brunswick still deadlocked

October 1st, 2018

by Greg Klein | October 1, 2018

Overwhelming majority puts Quebec government in new hands

CAQ incoming premier Francois Legault argued against unacculturated immigrants,
made popular funding promises and vowed to cut taxes. (Photo: Coalition Avenir Québec)

 

Updated Quebec results (with 2014 figures in parentheses)

  • Coalition Avenir Québec: 75 seats, 37.4% of the popular vote (21 seats, 23%)
  • Quebec Liberal Party: 29 seats, 24.8% (68 seats, 41.5%)
  • Parti Québécois: 10 seats, 17% (28 seats, 25.4%)
  • Québec Solidaire: 10 seats, 16.1% (3 seats, 7.6%)
  • Independent: 1 seat

 

A seven-year-old party jumped from third place to government status as the Coalition Avenir Québec won the October 1 provincial election. Leading in a majority of seats half an hour after polls closed, the CAQ pushed the incumbent Liberals to second place, leaving the former official opposition Parti Québécois struggling to stay above fourth spot. Easily winning his riding of L’Assomption was incoming premier Francois Legault, a CAQ co-founder who previously created Air Transat and served as a PQ government minister. His CAQ has attracted disaffected Liberals as well as Péquistes.

PQ leader Jean-Francois Lisee lost his seat to a Québec Solidaire challenger.

Overwhelming majority puts Quebec government in new hands

Mining issues held little prominence as debate focused heavily on immigration but sidelined independence. Spending promises flowed freely with health care, education and child care giveaways coinciding with CAQ promises to cut taxes.

But just one week before the campaign’s official start date, the Liberal government announced $185 million of provincial money for the privately held BlackRock Metals’ iron ore-vanadium-titanium open pit development in the northern riding of Ungava. The money consisted of $100 million in loans and an $85-million investment, part of a total package of $1.3 billion attracted to the project. The Liberals also promised $63 million to build energy infrastructure in the Chicoutimi riding that would host BlackRock’s secondary processing facility.

Ungava’s Liberal incumbent placed third while the CAQ narrowly beat the PQ in a very tight three-way contest. In Chicoutimi, the CAQ won a strong victory over the PQ incumbent.

Last May Premier Philippe Couillard joined Prime Minister Justin Trudeau to announce $60 million in federal funding for an Alcoa NYSE:AA/Rio Tinto NYSE:RIO aluminum smelter to be built in the overlapping federal riding of Chicoutimi-Le Fjord. Three days later Trudeau called a by-election, only to see a Conservative defeat his Liberal incumbent.

The Quebec government invests heavily in projects ranging from junior exploration to operating mines through the Ressources Québec subsidiary of Investissement Québec. In August Legault said he would cut bureaucracy at Investissement Québec.

Quebec’s March budget posted a $1.3-billion surplus, but the province receives equalization payments that came to $11.8 billion this year and will rise to $13.3 billion in 2019. Currently the entire amount comes from the western provinces. Legault opposed the Energy East pipeline proposal from Alberta to New Brunswick.

Pundits might wonder to what extent the CAQ’s success depended on its proposal to expel unacculturated immigrants. But any criticism of la province spéciale will have to be muted, even if the plan calls for unwanted foreigners to be packed off to Anglo Canada.

The PQ’s demotion hardly spells the end of separatism now that the party shares the independence vote with QS and possibly the CAQ, which has equivocated on the subject.

As for last week’s New Brunswick election, results remain in limbo. With 22 seats, the Conservatives edged out the incumbent Liberals by a single riding. Speculation focuses on either party making a deal with the People’s Alliance or the Greens, which won three seats each.

The Green result triples its N.B. legislative standing, continuing the party’s progress in Canada. Last June the Ontario riding of Guelph elected that province’s first Green. Canada now has eight Greens elected provincially (three in N.B., three in B.C., and one each in Ontario and Prince Edward Island), along with one elected federally in B.C. In B.C.’s legislature, the party holds the balance of power under an agreement with the New Democratic Party minority government.

Infographic: A new bull market in base metals?

July 11th, 2018

by Nicholas LePan | posted with permission of Visual Capitalist | July 11, 2018

Base metals are the most fundamental minerals produced for the modern economy and metals such as copper, zinc, nickel, lead and aluminum are the key components that support sustained economic growth.

During periods of economic expansion, these are the first materials to support a bustling economy, reducing inventory at metal warehouses and eventually their source, mines.

A base metals boom?

This infographic comes to us from Tartisan Nickel CSE:TN and it takes a look at the surging demand for base metals for use in renewable energy and EVs, and whether this could translate into a sustained bull market for base metals.

The base metals boom: Start of a new bull market?

 

Over the last three years, prices of base metals have risen on the back of a growing economy and the anticipation of usage in new technologies such as lithium-ion batteries, green energy and electric vehicles:

Cobalt: +232%
Zinc: +64%
Nickel: +59%
Copper: +45%
Lead: +34%
Tin: +36%
Aluminum: +42%

As goes the success and development of nations, so goes the production and consumption of base metals.

Why higher prices?

Development outside of the Western world has been the main driver of the base metals boom and it will likely continue to push prices higher in the future.

China has been the primary consumer of metals due to the country’s rapid economic expansion—and with recent efforts to improve environmental standards, the country is simultaneously eliminating supplies of low-quality and environmentally toxic metal production. India and Africa will also be emerging sources of base metal demand for the coming decades.

But this is not solely a story of developing nations, as there are some key developments that will include the developed world in the next wave of demand for base metals.

New sources of demand

Future demand for base metals will be driven by the onset of a more connected and sustainable world through the adoption of electronic devices and vehicles. This will require a turnover of established infrastructure and the obsolescence of traditional sources of energy, placing pressure on current sources of base metals.

The transformation will be global and will test the limits of current mineral supply.

Renewable energy technology

The power grids around the world will adapt to include renewable sources such as wind, solar and other technologies. According to the World Energy Outlook (IEA 2017), it is expected that between 2017 and 2040, a total of 160 GW of global power net additions will come from renewables each year.

Renewables will capture two-thirds of global investment in power plants to 2040 as they become, for many countries, the cheapest source of new power generation. Renewables rely heavily on base metals for their construction and would not exist without them.

Electric vehicles

Gasoline cars will be fossils. According to the International Energy Agency, the number of electric vehicles on the road around the world will hit 125 million by 2030. By this time, China will account for 39% of the global EV market.

Dwindling supply

Currently, warehouse levels in the London Metals Exchange are sitting at five-year lows, with tin leading the pack with a decline of 400%.

According to the Commodity Markets Outlook (World Bank, April 2018), supply could be curtailed by slower ramp-up of new capacity, tighter environmental constraints, sanctions against commodity producers and rising costs. If new supply does not come into the market, this could also drive prices for base metals higher.

New supply?

There is only one source to replenish supply and fulfill future demand, and that is with mining.

New mines need to be discovered, developed and come online to meet demand. In the meantime, those that invest in base metals could see scarcity drive prices up as the economy moves towards its electric future on a more populated planet.

An extended base metals boom may very well be on the horizon.

Posted with permission of Visual Capitalist.

Infographic: The history of North American co-operation on aluminum and steel

May 23rd, 2018

by Jeff Desjardins | posted with permission of Visual Capitalist

As the global rhetoric around trade heats up, aluminum and steel are two metals that have been unexpectedly thrust into the international spotlight.

Both metals are getting considerable attention as journalists and pundits analyze how tariffs may impact international markets and trade relations. But in that coverage so far, one thing that may have been missed is the interesting history and context of these metals, especially within the framework of trade in North America.

Aluminum and steel in North America

This infographic tells the story of an ongoing North American partnership in these goods, and how this co-operation even helped U.S. and Canadian efforts in World War II, as well as addressing other issues of national security.

 

The history of North American co-operation on aluminum and steel

 

Aluminum and steel are metals that are not only essential for industry to thrive, but they are also needed to build infrastructure and ensure national security.

Because of the importance of these metals, countries in North America have been co-operating for many decades to guarantee the best possible supply chains for both aluminum and steel.

The history: Aluminum and steel

Here are some of the major events that involve the two metals, from the perspective of North American trade and co-operation.

1899
The Pittsburgh Reduction Company, later the Aluminum Company of America (Alcoa), begins construction of a power plant and aluminum smelter in Shawinigan Falls, Quebec.

1901
The company produces the first aluminum ever on Canadian soil.

1902
This Canadian division is renamed the Northern Aluminum Company

New uses and WWI

1903
The Wright brothers use aluminum in their first plane at Kitty Hawk, North Carolina.

1908
The first Model T rolls off the assembly line, and steel is a primary component.

1910
The U.S. and Canadian steel industries surround the Great Lakes region. At this point the U.S. produces more steel than any other country in the world.

1913
The U.S. passes the Underwood Tariff, a general reduction in tariff rates that affected Canadian exporters. Zero or near-zero tariffs were introduced for steel. (The Canadian Encylopedia)

1914
At this point, 80% of American-made cars had aluminum crank and gear cases.

World War I
The Great War breaks out. It’s the first ever “modern war” and metals become strategically important in a way like never before. For the first three years, the U.S. helps the Allies—including Canada, which is already at war—by providing supplies.

Steel was crucial for ships, railways, shells, submarines and airplanes. Meanwhile, aluminum was used in explosives, ammunition and machine guns. The Liberty V12 engine, which powered Allied planes, was one-third aluminum.

During this stretch, America produced three times as much steel as Germany and Austria. By the end of the war, military usage of aluminum is sucking up 90% of all North American production.

Inter-war period

1919
After the war, the interruption of European aluminum shipments to North America drives up Northern Aluminum sales to the United States. In 1919, U.S. aluminum imports from Northern Aluminum total 5,643 tons, while all European producers add up to 2,360 tons.

1925
After aluminum gains post-war acceptance from consumers, Alcoa uses this new momentum to strike a deal to build one of the world’s greatest aluminum complexes in Quebec on the Saguenay River.

These facilities become the base for Northern Aluminum, which changes its name to the Aluminum Company of Canada (Alcan). By 1927, the area includes a new company town (Arvida), a 27,000-ton smelter and a hydro power plant. This complex would eventually become the world’s largest aluminum production site for WWII.

1929
The Roaring Twenties saw consumer culture take off, with auto and appliance sales escalating. Steel and aluminum demand continues to soar.

World War II

1940
Canada and the U.S. establish the Permanent Joint Board on Defense, still in operation today. Near the same time, the Canadian-American defence industrial alliance, known as the Defence Production Sharing Program, is also established.

1941
Canada and the U.S. agree to co-ordinate production of war materials to reduce duplication, and to allow each country to specialize, with The Hyde Park Declaration of 1941.

The record proves that in peaceful commerce the combined efforts of our countries can produce outstanding results. Our trade with each other is far greater than that of any other two nations on earth.—Harry Truman,
33rd U.S. president, 1947

The principles of this declaration recognize North America as a single, integrated defence industrial base.

1942
Canada builds the Bagotville airbase to protect the aluminum complex and hydro plants of the Saguenay region, which were crucial in supplying American and Canadian forces. A Hawker Hurricane squadron is permanently stationed to protect the area.

1945
The Saguenay facilities were so prolific that Canada supplied 40% of the Allies’ total aluminum production.

Cold War and North American integration

1952
The U.S. focuses on Canadian resources after the President’s Materials Policy Commission warns of future shortages of various metals, which could make the U.S. dependent on insecure foreign sources during times of conflict.

1956
Canada and the U.S. sign the Defence Production Sharing Agreement, which aims to maintain a balance in trade for defence products. At this point, Canada relies on the U.S. for military technology—and the U.S. relies on Canada for important military inputs.

1959
The St. Lawrence Seaway opens, providing ocean-going vessels access to Canadian and U.S. ports on the Great Lakes. This facilitates the shipping of iron ore, steel and aluminum.

1965
The Canada-U.S. Auto Pact allows for the integration of the Canadian and U.S. auto industries in a shared North American market. This paves the way for iron ore, steel and aluminum trade.

1989
The U.S. and Canada sign a free trade agreement, which eventually gets rolled into NAFTA in 1994.

Modern aluminum and steel trade

2007
U.S. Steel buys the Steel Company of Canada (Stelco) for $1.9 billion.

Today
The U.S. and Canada are each other’s best international customer for a variety of goods—including steel and aluminum.

Posted with permission of Visual Capitalist.

Visual Capitalist looks at China’s staggering demand for commodities

March 4th, 2018

by Jeff Desjardins | posted with permission of Visual Capitalist

China’s staggering demand for commodities

 

Over 50% of all steel, cement, nickel and copper goes there

The Chart of the Week is a Friday feature from Visual Capitalist.

It’s said that in China, a new skyscraper is built every five days.

China is building often, and it’s building higher. In fact, just last year, China completed 77 of the world’s 144 new supertall buildings, spread through 36 different Chinese cities. These are structures with a minimum height of 656 feet (200 metres).

For comparison’s sake, there are only 113 buildings in New York City’s current skyline that are over 600 feet.

Unbelievable scale

It’s always hard to put China’s size and scope in perspective—and Visual Capitalist has tried before by showing you 35 Chinese cities as big as countries, or highlighting the growing prominence of the domestic tech scene.

This chart also falls in that category and it focuses on the raw materials that are needed to make all this growth possible.

Year of data Commodity China’s % of global demand Source
2017 Cement 59% Statista
2016 Nickel 56% Statista
2017 Coal 50% NAB
2016 Copper 50% Global X Funds
2017 Steel 50% World Steel Association
2017 Aluminum 47% MC Group
2016 Pork 47% OECD
2017 Cotton 33% USDA
2017 Rice 31% Statista
2017 Gold 27% China Gold Association, WGC
2017 Corn 23% USDA
2016 Oil 14% Enerdata

Note: Because this data is not all in one easy place, it is sourced from many different industry associations, banks and publications. Most of the data comes from 2017, but some is from 2016.

China demand > world

There are five particularly interesting commodity categories here—and in all of them, China’s demand equals or exceeds that of the rest of the world combined.

Cement: 59%
The primary ingredient in concrete is needed for roads, buildings, engineering structures (bridges, dams, etc.), foundations and in making joints for drains and pipes.

Nickel: 57%
Nickel’s primary use is in making stainless steel, which is corrosion-resistant. It also gets used in superalloys, batteries and an array of other uses.

Steel: 50%
Steel is used for pretty much everything, but demand is primarily driven by the construction, machinery and automotive sectors.

Copper: 50%
Copper is one of the metals driving the green revolution and it’s used in electronics, wiring, construction, machinery and automotive sectors primarily.

Coal: 50%
China’s winding down coal usage—but when you have 1.4 billion people demanding power, it has to be done with that in mind. China has already hit peak coal, but the fossil fuel does still account for 65% of the country’s power generated by source.

Posted with permission of Visual Capitalist.

U.S. releases draft list of 35 critical minerals, seeks public comment

February 21st, 2018

by Greg Klein | February 21, 2018

Update: In May 2018 the U.S. Department of the Interior officially declared all 35 items on the draft list to be critical minerals.

 

The world’s largest economy and strongest military has taken another step to mitigate some surprising vulnerabilities. On February 16 the U.S. Department of the Interior released a draft list of 35 minerals deemed critical to American well-being. The move follows December’s presidential executive order calling for a “federal strategy to ensure secure and reliable supplies of critical minerals.” In response the U.S. Geological Survey compiled the new list, which now awaits input from the public. Americans have until March 19 to respond.

U.S. releases draft list of 35 critical minerals, seeks public comment

“The work of the USGS is at the heart of our nation’s mission to reduce our vulnerability to disruptions in the supply of critical minerals,” commented the DOI’s Tim Petty. “Any shortage of these resources constitutes a strategic vulnerability for the security and prosperity of the United States.”

The list defines “critical” as “a non-fuel mineral or mineral material essential to the economic and national security of the United States, the supply chain of which is vulnerable to disruption, and that serves an essential function in the manufacturing of a product, the absence of which would have significant consequences for the economy or national security.”

Among them are “aluminum—used in almost all sectors of the economy; the platinum group metals—used for catalytic agents; rare earth elements—used in batteries and electronics; tin—used as protective coatings and alloys for steel; and titanium—overwhelmingly used as a white pigment or as a metal alloy.”

Just one day before Donald Trump issued the order, the USGS released a nearly 900-page report, the first thorough examination of the subject since 1973, detailing 23 critical minerals. All 23 made the new list, with 12 newcomers including scandium, uranium and tungsten. Rare earths come under a single category of 17 elements. The list can be seen here, with links to USGS reports on each mineral.

Speaking with ResourceClips.com days after the president’s order, Jeff Green called it the country’s “most substantive development in critical mineral policy in 20 years.” The U.S. Air Force Reserve colonel, former USAF commander and Washington defence lobbyist added that a new critical minerals policy would largely benefit American companies and supply chains. But he pointed out that Trump “also said that international co-operation and partnerships with our strongest allies will be really important.”

See the USGS draft list of 35 critical minerals.

Read more about the U.S. critical minerals initiative.

Visual Capitalist and VRIC 2018 look at the raw materials that fuel the green revolution

January 10th, 2018

by Jeff Desjardins | posted with permission of Visual Capitalist | January 10, 2018

 

Records for renewable energy consumption were smashed around the world in 2017.

Looking at national and state grids, progress has been extremely impressive. In Costa Rica, for example, renewable energy supplied five million people with all of their electricity needs for a stretch of 300 consecutive days. Meanwhile, the UK broke 13 green energy records in 2017 alone, and California’s largest grid operator announced it got 67.2% of its energy from renewables (excluding hydro) on May 13, 2017.

The corporate front also looks promising and Google has led the way by buying 536 MW of wind power to offset 100% of the company’s electricity usage. This makes the tech giant the biggest corporate purchaser of renewable energy on the planet.

But while these examples are plentiful, this progress is only the tip of the iceberg—and green energy still represents a small but rapidly growing segment. For a full green shift to occur, we’ll need 10 times what we’re currently sourcing from renewables.

To do this, we will need to procure massive amounts of natural resources—they just won’t be the fossil fuels that we’re used to.

Green metals required

Today’s infographic comes from Cambridge House as a part of the lead-up to its flagship conference, the Vancouver Resource Investment Conference 2018.

A major theme of the conference is sustainable energy—and the math indeed makes it clear that to fully transition to a green economy, we’ll need vast amounts of metals like copper, silicon, aluminum, lithium, cobalt, rare earths and silver.

These metals and minerals are needed to generate, store and distribute green energy. Without them, the reality is that technologies like solar panels, wind turbines, lithium-ion batteries, nuclear reactors and electric vehicles are simply not possible.

First principles

How do you get a Tesla to drive over 300 miles (480 kilometres) on just one charge?

Here’s what you need: a lightweight body, a powerful electric motor, a cutting-edge battery that can store energy efficiently and a lot of engineering prowess.

Putting the engineering aside, all of these things need special metals to work. For the lightweight body, aluminum is being substituted for steel. For the electric motor, Tesla is using AC induction motors (Models S and X) that require large amounts of copper and aluminum. Meanwhile, Chevy Bolts and soon Tesla will use permanent magnet motors (in the Model 3) that use rare earths like neodymium, dysprosium and praseodymium.

The batteries, as we’ve shown in our five-part Battery Series, are a whole other supply chain challenge. The lithium-ion batteries used in EVs need lithium, nickel, cobalt, graphite and many other metals or minerals to function. Each Tesla battery, by the way, weighs about 1,200 pounds (540 kilograms) and makes up 25% of the total mass of the car.

While EVs are a topic we’ve studied in depth, the same principles apply for solar panels, wind turbines, nuclear reactors, grid-scale energy storage solutions or anything else we need to secure a sustainable future. Solar panels need silicon and silver, while wind turbines need rare earths, steel and aluminum.

Even nuclear, which is the safest energy type by deaths per TWh and generates barely any emissions, needs uranium in order to generate power.

The pace of progress

The green revolution is happening at breakneck speed—and new records will continue to be set each year.

Over $200 billion was invested into renewables in 2016 and more net renewable capacity was added than coal and gas put together:

Power Type Net Global Capacity Added (2016)
Renewable (excl. large hydro) 138 GW
Coal 54 GW
Gas 37 GW
Large hydro 15 GW
Nuclear 10 GW
Other flexible capacity 5 GW

The numbers suggest that this is only the start of the green revolution.

However, to fully work our way off of fossil fuels, we will need to procure large amounts of the metals that make sustainable energy possible.

Posted with permission of Visual Capitalist.

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Visual Capitalist: One chart shows EVs’ potential impact on commodities

September 15th, 2017

by Jeff Desjardins | posted with permission of Visual Capitalist | September 15, 2017

 

One chart shows EVs’ potential impact on commodities

The Chart of the Week is a Friday feature from Visual Capitalist.

 

How demand could change in a 100% EV world

What would happen if you flipped a switch and suddenly every new car that came off assembly lines was electric?

It’s obviously a thought experiment, since right now EVs have close to just 1% market share worldwide. We’re still years away from EVs even hitting double-digit demand on a global basis, and the entire supply chain is built around the internal combustion engine, anyways.

At the same time, however, the scenario is interesting to consider. One recent projection, for example, put EVs at a 16% penetration by 2030 and then 51% by 2040. This could be conservative depending on the changing regulatory environment for manufacturers—after all, big markets like China, France and the UK have recently announced that they plan on banning gas-powered vehicles in the near future.

The thought experiment

We discovered this “100% EV world” thought experiment in a UBS report that everyone should read. As a part of their UBS Evidence Lab initiative, they tore down a Chevy Bolt to see exactly what is inside, and then had 39 of the bank’s analysts weigh in on the results.

After breaking down the metals and other materials used in the vehicle, they noticed a considerable amount of variance from what gets used in a standard gas-powered car. It wasn’t just the battery pack that made a difference—it was also the body and the permanent-magnet synchronous motor that had big implications.

As a part of their analysis, they extrapolated the data for a potential scenario where 100% of the world’s auto demand came from Chevy Bolts, instead of the current auto mix.

The implications

If global demand suddenly flipped in this fashion, here’s what would happen:

Material Demand increase Notes
Lithium 2,898% Needed in all lithium-ion batteries
Cobalt 1,928% Used in the Bolt’s NMC cathode
Rare Earths 655% Bolt uses neodymium in permanent magnet motor
Graphite 524% Used in the anode of lithium-ion batteries
Nickel 105% Used in the Bolt’s NMC cathode
Copper 22% Used in permanent magnet motor and wiring
Manganese 14% Used in the Bolt’s NMC cathode
Aluminum 13% Used to reduce weight of vehicle
Silicon 0% Bolt uses six to 10 times more semiconductors
Steel -1% Uses 7% less steel, but fairly minimal impact on market
PGMs -53% Catalytic converters not needed in EVs

Some caveats we think are worth noting:

The Bolt is not a Tesla

The Bolt uses an NMC cathode formulation (nickel, manganese and cobalt in a 1:1:1 ratio), versus Tesla vehicles which use NCA cathodes (nickel, cobalt and aluminum, in an estimated 16:3:1 ratio). Further, the Bolt uses a permanent-magnet synchronous motor, which is different from Tesla’s AC induction motor—the key difference being rare earth usage.

Big markets, small markets

Lithium, cobalt and graphite have tiny markets, and they will explode in size with any notable increase in EV demand. The nickel market, which is more than $20 billion per year, will also more than double in this scenario. It’s also worth noting that the Bolt uses low amounts of nickel in comparison to Tesla cathodes, which are 80% nickel.

Meanwhile, the 100% EV scenario barely impacts the steel market, which is monstrous to begin with. The same can be said for silicon, even though the Bolt uses six to 10 times more semiconductors than a regular car. The market for PGMs like platinum and palladium, however, gets decimated in this hypothetical scenario—that’s because their use as catalysts in combustion engines are a primary source of demand.

Posted with permission of Visual Capitalist.