MINEX Forum

Tag: Green Transition

  • Portugal Finalizes Strategic Plan for Green Transition Raw Materials

    Portugal Finalizes Strategic Plan for Green Transition Raw Materials

    Portugal’s government is finalizing a strategic plan to explore raw materials critical to the green transition, with a particular focus on copper, which may take precedence over lithium. On Monday, Environment and Energy Minister Maria da Graca Carvalho highlighted Portugal’s wealth of critical raw materials, including copper, essential for electric cars.

    Portugal boasts the largest copper mine in the European Union, operated by Toronto-based Lundin Mining. The country also produces lithium for the ceramics industry and is developing large deposits of battery-grade lithium. “We have great potential to explore for copper, we already have a great tradition and we will continue to invest,” Carvalho stated during a conference.

    “When looking at critical raw materials, we have to consider lithium, but it is not the only one, nor perhaps the most important,” she added. The strategic plan is set to be presented on July 22. Carvalho noted, “Based on this strategy, we will define the areas of production for the various critical raw materials,” suggesting potential new concessions.

    Europe aims to enhance security and reduce dependence on imports from countries like China for materials crucial to the green transition. The previous Portuguese government had planned to auction licenses for lithium prospecting in six regions in the north and center of the country. However, concerns from nature preservation groups and local communities about the environmental and social impact of lithium mining have caused multiple delays since the auction’s initial plan in 2018.

    When asked about the new government’s stance on the lithium auction, Carvalho emphasized the need to review the final strategic plan and make decisions based on scientific and technical data.

  • Norway Launches First Seabed Mineral Licensing Round in the Arctic

    Norway Launches First Seabed Mineral Licensing Round in the Arctic

    Norway has announced the offering of large areas in the Arctic region for its inaugural seabed mineral licensing round, aiming to award exploration permits by the first half of 2025, according to the country’s energy ministry. This initiative could make Norway the first country in the world to commence commercial deep-sea mining, targeting the extraction of minerals essential for solar panels, wind turbines, and electric car batteries needed for the green transition away from fossil fuels.

    “The world needs minerals for the green transition, and the government wants to explore if it is possible to extract seabed minerals in a sustainable manner from the Norwegian continental shelf,” stated Energy Minister Terje Aasland.

    Preliminary official resource estimates indicate substantial accumulations of metals and minerals, including copper and rare earth elements. In January, the Norwegian parliament approved opening approximately 280,000 km² of ocean areas between Jan Mayen island and the Svalbard archipelago for seabed mineral exploration. The 386 blocks proposed on Wednesday cover about 38% of the total area opened by parliament, selected based on industry input, the energy ministry said.

    Despite the government’s ambitions, seabed mining has drawn criticism from environmentalists concerned about potential disruptions to one of the last relatively pristine natural environments. Organizations like WWF and Greenpeace have expressed significant concerns, challenging Norway’s plans in court and warning about the potential impact on fragile ecosystems. WWF condemned the proposal, calling it a substantial blow to Norway’s reputation as a responsible steward of the oceans. Greenpeace labeled the proposed area as “shockingly large,” citing previous scientific warnings.

    Internationally, Norway’s seabed mineral exploration plans face opposition from several countries, including France, which has advocated for a global moratorium to better understand the impact on deep-sea organisms. The Council of the European Union also voiced concerns, emphasizing the need for thorough impact assessments.

    The Norwegian government has assured that the initial exploration stage will have minimal impact on seabed organisms and stated that companies will need separate consents before any production can commence.

  • EU to Launch Critical Minerals Initiative for Green Transition

    EU to Launch Critical Minerals Initiative for Green Transition

    The European Commission is poised to issue calls for projects aimed at enhancing the EU’s supply of critical minerals within the coming days, according to a senior official. This initiative is part of a broader strategy to secure essential materials like lithium and copper, which are vital for the EU’s green and digital transformations. The EU Critical Raw Materials Act, which becomes effective on May 23, is at the heart of this effort, ensuring that the EU can independently produce electric vehicles and wind turbines, thereby reducing reliance on China.

    Maros Sefcovic, the Commission Vice-President, announced that the first meeting of the board overseeing the act, comprising EU member representatives, will be convened soon. “Shortly after this meeting, we aim to launch the first call for strategic projects,” Sefcovic stated during the EU Raw Materials Summit in Brussels.

    Projects focused on processing, recycling, or mining that are deemed strategic will benefit from an expedited permitting process, receiving approvals within 15-27 months, significantly faster than the usual timeframe. Sweden’s Eurobattery Minerals AB has already indicated its intention to apply for a strategic project designation for a mine in Finland.

    Additionally, the Commission is planning joint EU purchases of approximately 30 critical materials, leveraging its experience with joint gas purchases. Sefcovic emphasized the need for swift action, although he acknowledged the necessity of garnering support from EU member states, which had been a challenge with gas.

    The existing platform for gas procurement could serve as a model for these mineral purchases, despite the increased complexity of managing multiple materials. This system is expected to enhance the EU’s ability to forecast future demand more accurately. The Commission is also exploring the potential for stockpiling key minerals, drawing inspiration from Japan’s approach to rare earth reserves.

  • EU to Launch Calls for Critical Minerals Projects and Joint Purchases

    EU to Launch Calls for Critical Minerals Projects and Joint Purchases

    The European Commission is set to initiate calls for projects aimed at improving the EU’s supply of critical minerals, with plans to start joint EU purchases similar to its existing gas scheme, announced a senior commissioner on Wednesday. The EU Critical Raw Materials Act, which ensures a stable supply of essential minerals like lithium and copper for the EU’s green and digital transitions, comes into effect on May 23. This act is crucial for the production of electric vehicles and wind turbines, reducing the bloc’s reliance on China.

    Commission Vice-President Maros Sefcovic mentioned that the EU executive would soon hold the inaugural meeting of a board overseeing the act. “Within days after that… we would like to launch the first call for strategic projects,” Sefcovic stated at the EU Raw Materials Summit in Brussels. Strategic projects in processing, recycling, or mining will benefit from expedited permits within 15-27 months. Eurobattery Minerals AB from Sweden has expressed intentions to apply for a strategic mine in Finland.

    Additionally, Sefcovic revealed that the Commission is drafting plans for joint purchases of around 30 critical materials, leveraging its gas purchase scheme experience. The EU executive aims to facilitate connections between global suppliers and EU buyers, hoping to launch the scheme promptly despite potential hesitations from member states. The existing gas purchase platform could serve as a model, though acquiring diverse critical minerals presents more complexity. The Commission is also exploring stockpiling key minerals, inspired by Japan’s approach to rare earths.

  • Vulcan Energy Commences Lithium Production Using Geothermal Energy in Germany

    Vulcan Energy Commences Lithium Production Using Geothermal Energy in Germany

    Vulcan Energy, a prominent lithium supplier, has heralded the initiation of lithium chloride production at its extraction facility in Germany, marking a significant milestone towards the creation of battery-grade lithium hydroxide. CEO Cris Moreno emphasized the groundbreaking nature of this endeavor, highlighting that it represents the first instance of locally sourced lithium in Germany, drawn from underground reservoirs in the country’s Upper Rhine Valley region. Vulcan Energy’s innovative approach harnesses geothermal energy to extract lithium-rich brine, aligning with the European Union’s objectives to secure essential metals for its green transition. In response to potential challenges such as financial constraints and opposition, the German government has established a substantial investment fund of 1.1 billion euros to bolster access to critical raw materials, underscoring the strategic significance of initiatives like Vulcan’s. The company, boasting of offtake agreements with major automakers, including Volkswagen and Renault, is progressing rapidly with its lithium extraction optimization plant in Landau, Germany, demonstrating promising results and operational efficiency. Vulcan’s lithium chloride output will serve as the precursor for battery-grade lithium hydroxide production at its forthcoming conversion plant in Frankfurt. Looking ahead, Vulcan aims to secure funding for its ambitious industrial plant, targeting an annual output of 24,000 tonnes of lithium hydroxide, equivalent to powering half a million electric vehicles, with financing discussions underway and preliminary approval from the European Investment Bank.

  • EU and Australia Nearing Strategic Partnership on Raw Materials for Green and Digital Transitions

    EU and Australia Nearing Strategic Partnership on Raw Materials for Green and Digital Transitions

    The European Union (EU) and Australia are on the brink of forging a strategic partnership aimed at securing the essential raw materials crucial for their respective green and digital transitions. According to a spokesperson from the European Commission, negotiations have been underway for a memorandum of understanding (MoU) that will lay the groundwork for this partnership. Commission spokesperson Johanna Bernsel disclosed to POLITICO on Monday that they anticipate signing this pivotal agreement as early as May. Sources close to the discussions revealed that both parties have reached a substantial consensus on the content of the MoU, which is nearing its final form. An official, speaking on condition of anonymity due to the confidential nature of the talks, suggested that the announcement of the deal could be expected in the upcoming weeks or months.

  • Norway and EU Forge Industrial Partnership to Advance Sustainable Value Chains

    Norway and EU Forge Industrial Partnership to Advance Sustainable Value Chains

    Norway and the European Union have formalized an agreement aimed at strengthening cooperation on sustainable value chains, with a specific focus on land-based raw materials and batteries. Minister of Trade and Industry, Jan Christian Vestre, emphasized the significance of this collaboration, highlighting its pivotal role in accelerating climate and green transition goals. He further emphasized the potential for economic growth, increased investments, and the creation of green jobs in Norway as a result of this partnership. Executive Vice-President Maroš Šefčovič echoed these sentiments, underlining the strategic importance of the agreement in fostering business and research opportunities while solidifying industrial and political ties between Norway and the EU. As a cornerstone of the Green Alliance established last year, the industrial partnership aims to enhance climate, environmental, energy, and industrial cooperation, serving as the inaugural initiative under the Green Alliance framework. Minister Vestre stressed the agreement’s significance for Norwegian businesses and its role in facilitating dialogue with the EU regarding green value chains. He highlighted its alignment with Norway’s Green Industrial Initiative, particularly focusing on critical raw materials and batteries. Given Norway’s pivotal role as a supplier of critical raw materials, the partnership aims to address vulnerabilities in global supply chains by promoting closer collaboration between Norway and the EU. Batteries, identified as a crucial technology for renewable energy transition, are at the forefront of this collaboration, with the partnership aiming to address concerns raised by Norwegian battery players regarding market access. Norway’s participation in ministerial meetings within the European Battery Alliance will further facilitate dialogue on establishing the European battery value chain. Overall, the partnership provides a framework for discussions on potential disruptions in regional value chains, including the application of rules of origin for battery components traded between the EU and the UK.

  • Europe’s Green Transition Driving Demand for Critical Raw Materials

    Europe’s Green Transition Driving Demand for Critical Raw Materials

    The surge in demand for raw materials is primarily propelled by Europe’s commitment to transitioning to a green economy, with a focus on achieving climate neutrality. This push towards sustainability has been further fueled by Russia’s conflict with Ukraine, prompting a rapid shift away from fossil fuels towards renewable energy sources.

    The European Union (EU) established a methodology in 2010 to identify critical raw materials (CRMs), based on supply risk and economic importance. Materials are deemed critical if they face high supply risks and are economically significant. These CRMs, including lithium and rare earth elements (REE), play pivotal roles in various sectors, particularly in green and digital transitions.

    Lithium, for instance, is indispensable for battery production, with demand projected to skyrocket in Europe and globally. Similarly, REE are vital for manufacturing electric motors, wind turbines, and energy-efficient lighting. However, the EU’s heavy reliance on a few supplier countries, notably China, poses significant supply chain vulnerabilities.

    To address these challenges, the EU emphasizes material efficiency, substitution, and circularity. Circular economy strategies, such as recycling and promoting alternatives, are crucial for reducing import dependencies and ensuring a resilient supply chain for CRMs.

  • EU moves to cut dependency on China for battery and solar panel materials

    EU moves to cut dependency on China for battery and solar panel materials

    The European Parliament, in a significant move, has voted to reduce regulatory burdens and diversify the sources of critical raw materials like lithium and silicon. This plan aims to secure a steady supply of these materials, which are essential for the production of solar panels, electric vehicle batteries, and other crucial elements of the EU’s green transition.

    By approving this act with an overwhelming majority of 515 votes in favor and 34 against, the European Parliament seeks to decrease its reliance on a single country for more than 65% of any strategic raw material by 2030. The details of this act will now undergo negotiations between the parliament and the council.

    Nicola Beer, a German MEP from the liberal Renew Europe group, who was responsible for the proposal, expressed that the European Parliament has taken a clear stance on the security of supply, emphasizing the path towards European sovereignty and competitiveness. The EU’s shift towards clean energy necessitates access to critical raw materials like lithium and silicon, as they are vital for electric vehicle batteries and solar panel semiconductors. Presently, the EU depends on a small number of countries, including China, as suppliers.

    Hildegard Bentele, a German MEP from the center-right European People’s Party, stressed the importance of increasing the supply of reliable sources for raw materials, stating that electric mobility cannot thrive without batteries, and batteries cannot be produced without an adequate supply of lithium. She emphasized the need for a credible and strategic raw materials policy to achieve this goal.

    The newly proposed plan establishes targets for the extraction, processing, and recycling of critical raw materials. By 2030, the EU aims to have the capacity to extract at least 10% of its demand and process 50% of its demand for these materials. The plan also includes provisions allowing for up to 20% of new processing capacity to come from partnerships with emerging markets. Furthermore, the recycling capacity is expected to reach 45% for the collection, sorting, and processing of strategic materials from waste.

    Mohammed Chahim, a Dutch MEP from the center-left Socialists and Democrats, highlighted the potential to reduce import demand through improved material efficiency and recycling. He noted that the revised plan expands the scope of national circularity plans to encompass more reuse, refurbishment, and recycling, in comparison to the original proposal put forth by the European Commission.

    According to the International Energy Agency’s net-zero emissions scenario, global demand for key critical minerals, including nickel, cobalt, lithium, copper, and neodymium, is projected to grow by 1.5 to seven times by the end of the decade. This underscores the urgency for the EU to diversify its sources of these materials.

    Since the conflict between Russia and Ukraine exposed the EU’s overreliance on Russian gas imports, European politicians and businesses have been actively seeking alternative suppliers for key minerals. Markus Beyrer, the head of the industry lobby group BusinessEurope, acknowledged the European Parliament’s recognition of the importance of securing and diversifying the supply of critical raw materials. He particularly welcomed the support for streamlined permitting processes, reduced bureaucratic obstacles, and the focus on strengthening partnerships with trading partners.

    However, some environmentalists have raised concerns regarding the act, fearing that it may lead to poorly regulated mines in countries like Finland, which is rich in critical minerals, thereby posing risks to the environment. They have criticized the proposal for expediting the issuance of permits without adequately raising the environmental standards that mining companies must adhere to.

    Satu Jaatinen, a board member of MiningWatch Finland, an environmental nonprofit organization, emphasized that mines and the battery industry can be made sustainable by adopting existing technologies. She expressed disappointment that the industry is unwilling to make the additional investments required for sustainability, asserting that mines should reflect their true costs.

    The negotiations and implementation of this act will play a significant role in shaping the EU’s approach to securing critical raw materials while balancing environmental concerns and sustainability.

  • Belgium leads the way in rare earth metals recycling

    Belgium leads the way in rare earth metals recycling

    Belgium is a European leader in recycling, one of the few nations to meet recycling targets set out by the EU. Other than household and commercial waste, Belgian recycling plants are now helping to reduce Europe’s dependence on foreign minerals.

    Rare earth metals, commonly used in the production of high-tech goods, are desperately needed for the European economy. China has a monopoly on the supply of these metals, producing up to 97% of the world’s supply.

    In July, China placed export restrictions on gallium and germanium metals, which are indispensable for the production of advanced chips.

    China accounts for about 80% of the global production of gallium, which is used in integrated circuits, LEDs and solar panels, among others. The country also dominates the production of germanium, which is used in the production of fibre-optic cables and infrared applications.

    The European Commission is concerned that restrictions on exports of certain rare earth metals will impact EU supply chains, especially within the context of growing demand for these metals for the green transition. It wants to reduce dependence on third countries such as China to 65% for imports of 18 critical resources.

     

    Rare metals from scrap

    Belgian companies want to play a role in the transition away from reliance on rare earth metals imports. Even if Europe is not well-suited for the extraction of these precious metals, it can play a role in reducing imports, notably through recycling.

    One factory in Liège is one of the very few places in Europe to process metallurgy-related waste and recover the valuable rare earth metals. Hydrometal has been extracting gallium and germanium from waste for nearly 20 years. However, this is no simple process.

    “It’s very precise, difficult to make profitable, very competitive, and you can’t find a lot of raw materials on the market. It really requires specific knowledge and specific chemistry. Our factory is the only one in Wallonia. Today, there are two actors in Belgium who can do it, and only two actors in Europe too,” Phillipe Henry, administrator of Hydrometal, told RTL Info.

    Recent Chinese export restrictions have caused prices on the market to skyrocket. The current market price for gallium is $614 per kg, and $2,716 per kg for germanium. Faced with these rising prices, recycling has become a more profitable endeavour.

    “We are contacted almost every day to be able to respond to these challenges. They will not be easy, because we have to remain competitive, answer also have to see if it can be maintained in the long-term,” Henry noted.

    For now, Belgian companies are focused on the extraction of rare earth minerals from waste in the metallurgy industry. Granted, much of our tech and smartphones contain highly sought after rare earth metals, but these amounts are still too small to be profitable for major recycling companies.

    The amounts contained in phones amount to just a few grams per tonne, and it is not currently viable to extract gallium, germanium, or indium from them, at least in Belgium.

    While recycling plays an important role in reducing dependence on Chinese exports, Europe may soon switch to encouraging their extraction from European soil. Currently, no rare earth metals are mined in Europe.

    But new studies have revealed massive deposits of valuable rare earth metals, which could feasibly be extracted. In Sweden, mineral group LKAB discovered an untapped reserve of more than 10 million tonnes of oxides, the largest known deposit of its kind in Europe.

    The EU will reflect on the possibility of the opening of new rare earth metal mines in Europe, but will likely still face resistance from locals due to environmental concerns. The largest potential extraction site for Europe is at Kvanefjeld in Greenland, but extraction has been prevented by indigenous groups and local residents.

    The need to find new solutions is growing. Last year, European Commission President Ursula von der Leyen predicted that “Lithium and rare earth metals will soon be more important than oil and gas.”