MINEX Forum

Tag: electric vehicles

  • Kazakhstan Poised to Meet Global Demand for Critical Minerals Amid Energy Transition

    Kazakhstan Poised to Meet Global Demand for Critical Minerals Amid Energy Transition

    Kazakhstan has the potential to ensure uninterrupted supplies of critical minerals and help meet the growing global demand driven by the energy transition and the expansion of the electric vehicle market, according to the Astana International Financial Centre (AIFC). Experts at the center highlight that Kazakhstan possesses export potential in nine key commodity groups, including metals already being exported and others with untapped potential.

    The AIFC report emphasizes that the global shift toward low-carbon development and the rapid growth of the electric vehicle industry will significantly increase demand for critical minerals. Kazakhstan, with its vast resources, is well-positioned to play a pivotal role in this transition. The country has already demonstrated competitive advantages in exporting copper, zinc, aluminum, silver, and lead. Additionally, gold, nickel, lithium, and rare earth metals are identified as emerging export opportunities that could further strengthen Kazakhstan’s position in the global market.

    Kazakhstan holds a 5% share of the global zinc market, ranking seventh in reserves with 6.7 million tons in 2023. In 2022, 70% of its zinc exports went to Turkey, Russia, and China. The country also accounts for nearly 4% of the global copper market, with 20 million tons in reserves, and its top export destinations include China, Turkey, and the UAE.

    While Kazakhstan’s share in the global lead market is around 3%, its silver reserves rank third globally, with an annual demand of 26,000 tons. The country’s aluminum reserves, though less than 1% of the global market, are significant, with major exports going to Turkey, Italy, and Greece.

    Looking ahead, Kazakhstan is exploring opportunities in nickel, lithium, and rare earth metals. The country ranks among the top 20 globally in nickel reserves, with 1.5 million tons, and is collaborating with companies from Germany, South Korea, and the UK to develop lithium deposits. A recent discovery in March 2024 revealed a lithium deposit in Eastern Kazakhstan worth an estimated $15.7 billion.

    Furthermore, Kazakhstan has seen a 3.8-fold increase in rare earth metal exports since 2020. The government has adopted a comprehensive plan for 2024-2028, investing 2.4 billion tenge to develop this sector. With potential resources valued at $46 trillion, Kazakhstan is set to become a key supplier of critical raw materials to the European Union, as highlighted in a recent agreement worth 3 million euros.

  • Savannah Resources to Resume Drilling at Barroso Lithium Project After Suspension Lifted

    Savannah Resources to Resume Drilling at Barroso Lithium Project After Suspension Lifted

    Savannah Resources (LON: SAV) will immediately restart fieldwork and drilling at its Barroso lithium project in Portugal after the government lifted a temporary suspension order.

    The British company had paused work earlier this month following a precautionary injunction filed by landowners challenging the government’s approval for Savannah to access land it does not own. However, authorities issued a “reasoned resolution” stating that delays would be costly and harmful to the public interest, according to Savannah’s statement.

    Despite the news, Savannah’s stock fell 1.02% to £4.36 per share in London on Friday, giving the company a £95 million ($120 million) market capitalization.

    Barroso’s spodumene deposit is Europe’s largest, with recent prospecting results indicating it could exceed the previously estimated 28 million tonnes of high-grade lithium. However, the project has faced strong local opposition, including protests, legal battles, and refusals to sell land. Approximately 24% of the required land is privately owned, while 75% consists of common land (“baldios”).

    First Lithium Output in 2027

    Savannah aims to build four open-pit mines to supply lithium for 500,000 to 1 million electric vehicle batteries annually. The company is targeting first production by 2027.

    Once operational, Barroso is expected to produce 1.5 million tonnes annually over a 14-year mine life, based on a 20.5-million-tonne resource at 1.05% lithium oxide.

  • Copper Demand Expected to Surge as Oil Consumption Declines

    Copper Demand Expected to Surge as Oil Consumption Declines

    Global demand for copper is projected to rise significantly, while oil consumption is expected to decline, reports inbusiness.kz citing EnergyProm.

    In Kazakhstan, copper ore production reached 160.2 million tons in January–December 2024, marking a 7.4% increase compared to the same period in 2023. However, the actual copper content in these ores ranges from 0.5% to 6%, with 5% considered exceptionally rich. The country’s copper concentrate production stood at 567.2 thousand tons, down 2.1% from the previous year, with copper content in the concentrate varying from 8% to 35%.

    Meanwhile, the global demand for copper is surging, with Goldman Sachs referring to it as the “new oil” due to its crucial role in clean energy technologies. According to the International Monetary Fund (IMF), copper demand is set to rise from 25.9 million tons in 2023 to 39.1 million tons by 2040, while oil consumption is expected to fall from 101.9 million to 66 million barrels per day. A significant portion of this growth will be driven by the electric vehicle (EV) industry, where copper is essential for battery components.

    Data from the U.S. Geological Survey indicates that global copper production reached 22 million tons in 2023, with North, South, and Central America dominating the market. These regions host 15 of the world’s 20 largest copper deposits.

    Chile led global production with 5 million tons in 2023, followed by China (1.7 million tons) and the U.S. (1.1 million tons). Russia ranked sixth with 910 thousand tons, while Kazakhstan also secured a spot among the top producers, mining 600 thousand tons.

  • Chinese-European Partnership to Build Lithium-Ion Battery Plant in Spain

    Chinese-European Partnership to Build Lithium-Ion Battery Plant in Spain

    Shenzhen Dynanonic Co. Ltd., a leading Chinese battery materials producer, has entered into a joint venture with ICL, a global specialty minerals company, to establish a lithium-ion battery plant in northeast Spain. The project, with an initial investment of €285 million, will be located in Sallent, Catalonia, on the site of a former potash production plant. Shenzhen Dynanonic will hold a 20% stake, while ICL will control 80%, with potential adjustments for future investments.

    The facility, spanning 100,000 square meters, will be the first in the region to produce lithium iron phosphate for electric battery cathodes—a critical component for electric vehicles. The strategic location near the Port of Barcelona and rail connections to France will facilitate efficient distribution across Europe, meeting the growing demand for lithium-ion batteries fueled by the expansion of the EV market.

    Ren Wangbao, vice president of Shenzhen Dynanonic, highlighted the venture’s alignment with the company’s mission to lead in new energy material solutions. The plant will not only strengthen Shenzhen Dynanonic’s European presence but also enhance its ability to supply core battery materials for electric vehicles and energy storage systems.

    Phil Brown, president of ICL’s Phosphate Solutions Division, emphasized the importance of lithium iron phosphate in Europe’s energy transition, describing it as a “critical solution for the future.” The Catalan regional government welcomed the initiative, with Miquel Samper, the region’s business minister, praising its potential to create quality jobs and accelerate the green transition.

  • Europe Moves Toward Lithium Independence with New German Refinery for EV Batteries

    Europe Moves Toward Lithium Independence with New German Refinery for EV Batteries

    As European automakers ramp up their pursuit of lithium for electric vehicle (EV) batteries, an Australian company is stepping in with a new refinery in Germany to help meet demand. Vulcan Energy has launched a pilot project at its plant west of Frankfurt to extract lithium from briny underground water near the French border. This lithium will be used by major auto manufacturers including Volkswagen, Renault, and Stellantis.

    In addition to producing lithium, the plant will use excess geothermal heat from water pumped from two kilometers below the Rhine Valley to warm homes in a local community. Francis Wedin, a senior executive at Vulcan, described the project as vital to Europe’s goal of reducing its reliance on foreign sources of critical materials. Currently, Europe’s lithium battery sector is struggling to gain a foothold as regional demand for EVs slows, but Vulcan hopes its plant will bolster Europe’s lithium industry and support the continent’s broader green transition.

    Set to begin commercial production by 2027, Vulcan’s project is partly funded by a 100 million euro ($106 million) subsidy from the German government. The EU, with its 2035 deadline to phase out new combustion engine vehicles, is eager to secure local lithium supplies to reduce dependency on China, a dominant player in global lithium mining and refining.

    Vulcan’s method involves drawing brine from geothermal reservoirs beneath Landau, where it’s processed into lithium hydroxide through electrolysis and crystallization. Notably, this approach has a carbon-neutral footprint and could be more cost-effective than China’s current methods. Vulcan’s Frankfurt facility aims to produce 24,000 tonnes of lithium hydroxide annually by 2027, enough for approximately 500,000 EV batteries.

    The EU has committed to refining 40% of its critical minerals domestically and has launched 28 lithium extraction or refining projects across the bloc. One competitor, AMG Lithium, opened a refinery in eastern Germany in September, sourcing raw materials from Brazil. Still, clean transport advocates warn that while securing lithium is critical, Europe needs further infrastructure to achieve full battery production independence.

  • Vulcan Energy to Begin Large-Scale Lithium Production in Germany by 2027

    Vulcan Energy to Begin Large-Scale Lithium Production in Germany by 2027

    Vulcan Energy Resources, a company focused on producing sustainable lithium, has announced its goal to begin large-scale lithium hydroxide production in Germany by 2027, after pushing back its timeline by two years. The company recently commenced operations at its lithium chloride demonstration plant in Landau and aims to produce 24,000 tons of lithium hydroxide annually—enough to support 500,000 electric vehicles. CEO Christian Freitag cited the extended financing process as a factor in the delay, with Vulcan now raising €1.9 billion. Funding will include over €600 million in equity and €1.3 billion in loans from multiple sources, including a €500 million commitment from the European Investment Bank.

    This production marks a significant step for Europe’s energy goals, helping reduce dependence on lithium imports from China and South America. Vulcan’s extraction method, powered by geothermal energy, aligns with Germany’s goal for a low-carbon lithium source to support the EV sector’s growing demand. Vulcan has already sold its first decade’s production through agreements with major automotive manufacturers like Volkswagen, Stellantis, and Renault, underscoring the anticipated demand surge in Europe for lithium-ion battery components.

  • Northvolt Advances in Securing Over $300 Million Financing Package

    Northvolt Advances in Securing Over $300 Million Financing Package

    Swedish battery maker Northvolt is making considerable progress in securing a new financing package, the company confirmed on Monday. In recent weeks, Northvolt has been in discussions with investors and lenders to acquire short-term funding, according to three sources familiar with the matter. These efforts aim to stabilize the company’s finances. As of now, the company has already begun gathering signatures for a funding deal that could exceed $300 million and might be finalized before the end of the month, a source directly involved in the discussions stated. This package is expected to provide sufficient funds for Northvolt until next year. The person speaking on the matter requested anonymity due to lack of authorization to discuss the topic publicly.
    “We have made significant progress towards securing a financial solution for Northvolt, and we are engaging in constructive dialogues with key stakeholders, including customers, suppliers, shareholders, and lenders,” a Northvolt spokesperson told Reuters. “We are now working intensely to conclude these financing discussions in a timely manner.”
    Northvolt, once seen as Europe’s leading hope for a home-grown electric vehicle battery supplier, has been facing financial challenges due to production issues, lower demand, and competition from China. The company has been forced to cut jobs and downsize operations to stay afloat.

  • Cornish Lithium to Launch £15m Demonstration Plant, Aims to Boost UK’s Clean Energy Transition

    Cornish Lithium to Launch £15m Demonstration Plant, Aims to Boost UK’s Clean Energy Transition

    A new lithium production demonstration plant is set to open in Cornwall, marking a significant step in the UK’s shift towards clean energy. Cornish Lithium announced that the £15m facility near St Austell will begin producing lithium hydroxide—a key component in electric vehicle (EV) batteries—from granite sourced from an old China clay pit. This initiative aims to reduce the UK’s reliance on importing carbon-intensive materials from countries like China.

    The unveiling ceremony will take place at the Trelavour Hard Rock project this Friday. The company plans to produce 10,000 tonnes of sustainable domestic lithium annually by 2027. According to CEO Jeremy Wrathall, lithium is essential for manufacturing EVs, grid-scale electricity storage, and rechargeable electronics. Currently, the UK imports 100% of its lithium, but by 2030, the demand is expected to reach 110,000 tonnes of lithium carbonate equivalent.

    Wrathall emphasized that Cornwall holds one of the largest lithium resources in Europe, with the potential to meet more than half of the UK’s EV industry needs. He noted that this resource is an untapped advantage, which could make UK industries more competitive and less vulnerable to global supply chain issues.

    The £15m demonstration plant was funded through the National Wealth Fund, alongside The Energy and Minerals Group, TechMet, and the UK Government’s Automotive Transformation Fund. Wrathall added that this project could benefit an area with a 4,000-year mining heritage and help tackle social deprivation. Business and Trade Secretary Jonathan Reynolds praised the project for supporting high-skilled jobs in the South West and bolstering the UK’s critical minerals supply chains.

  • Savannah Resources Predicts Lithium Price Rebound by 2027, Targets Production in Portugal

    Savannah Resources Predicts Lithium Price Rebound by 2027, Targets Production in Portugal

    Savannah Resources, a London-based mining company, anticipates a rebound in lithium prices by 2027, aligning with its plans to begin commercial production at its Barroso mining project in Portugal, according to CEO Emanuel Proenca. Lithium, a key material used in electric vehicle (EV) batteries and appliances, has seen an 80% price dropover the past year due to overproduction in China and a reduction in EV demand.

    Proenca emphasized that the market’s fundamentals remain strong, predicting a supply deficit from 2027 onward, which fits Savannah’s project timeline. He expressed optimism about global lithium demand, expecting it to grow 2.6 times over the next seven years, with a sharp acceleration starting in 2027.

    Savannah aims to bring the Barroso project online in 2027, delayed by a year due to a political change in Portugal. The company plans to build four open-pit mines in the northern Barroso region, extracting enough lithium for half a million EV batteries annually. Despite facing opposition from local residents and environmentalists, Proenca assured that the project would proceed.

    His optimism is echoed by Rio Tinto’s CEO, Jakob Stausholm, who recently announced the company’s acquisition of Arcadium Lithium for $6.7 billion, positioning Rio Tinto as a leading global player in lithium mining.

  • Savannah Resources Delays Portugal Lithium Project to 2027 Amid Government Changes

    Savannah Resources Delays Portugal Lithium Project to 2027 Amid Government Changes

    Savannah Resources, a London-based mining company, has announced a delay in the production start date of its lithium project in northern Portugal. Originally slated to begin operations in 2026, the project is now expected to commence in 2027, citing delays caused by changes in the Portuguese government. The shift occurred after Portugal’s centre-right government took power in March, following the resignation of former Socialist Prime Minister Antonio Costa amid an investigation into alleged irregularities in handling lithium and hydrogen projects.

    The company plans to establish four open-pit mines in the Barroso region, with the goal of extracting enough lithium annually to power half a million electric vehicle (EV) batteries. However, Savannah explained that the government’s transition has impacted the project’s timeline, particularly with respect to access to land. The company now expects to complete its definitive feasibility study and environmental licensing by the second half of 2025.

    In the meantime, legal proceedings have begun to grant Savannah temporary access to land that it does not yet own to carry out essential fieldwork on its 840-hectare concession area. While Savannah has purchased over 100 plots of land, data from September 2023 showed that the company had acquired or was in the process of acquiring only 93 hectares.

    The Portuguese government holds the authority to approve compulsory land acquisitions if deemed necessary, a step Savannah has indicated it may take. The project, facing strong opposition from local residents and environmentalists, is considered a critical test for the European Union’s strategy to reduce reliance on countries like China for vital raw materials.