{"id":8039,"date":"2021-09-06T09:34:00","date_gmt":"2021-09-05T23:34:00","guid":{"rendered":"http:\/\/yinghuiinternational.com\/?p=8039"},"modified":"2021-09-12T09:42:48","modified_gmt":"2021-09-11T23:42:48","slug":"electric-vehicles-to-drive-australias-mining-future","status":"publish","type":"post","link":"https:\/\/yinghuiinternational.com\/index.php\/2021\/09\/06\/electric-vehicles-to-drive-australias-mining-future\/","title":{"rendered":"Electric vehicles to drive Australia\u2019s mining future"},"content":{"rendered":"\n

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BHP will supply nickel for Tesla\u2019s electric vehicles<\/strong>.<\/p>\n\n\n\n

Industry leaders predict critical minerals for battery technologies will lead to significant opportunities for the nation\u2019s growing resources sector.<\/p>\n\n\n\n

Australia is expected to be at the forefront of the electric vehicle (EV) boom<\/strong> with key industry figures signalling that a combination of critical minerals for battery production and increased demand for the vehicles will create an enormous opportunity.<\/p>\n\n\n\n

BHP Market Analysis Economics vice president Huw McKay, in the company\u2019s first-half economic and commodity outlook, says EVs are expected to constitute around 17 per cent of the light duty vehicle fleet by 2035 and around 41 per cent of annual sales.<\/p>\n\n\n\n

\u201cWhile the collapse in auto sales activity under COVID\u201319 (from already low levels) also hit EVs, they bounced back hard in the second half of calendar 2020,\u201d McKay says. <\/p>\n\n\n\n

\u201cAnnual sales passed three million units for the first time, representing 37 per cent growth year on year.<\/p>\n\n\n\n

\u201cThe 17 per cent fleet share we now project in 2035 translates to 314 million EVs on the road, versus 275 million previously.\u201d<\/p>\n\n\n\n

Tesla chair Robyn Denholm, speaking at the Mineral Council Australia\u2019s minerals week event in June, explains that each EV has around $5000 worth of minerals, with Australia capable of supplying almost all of it.<\/p>\n\n\n\n

\u201cAustralia is the only country in the world with resources in all three of the critical battery metals, as well as other minerals required for the clean energy transition<\/strong>,\u201d Denholm says.<\/p>\n\n\n\n

\u201cBy 2030, the value of the global lithium-ion battery<\/strong> market is forecast to be $400 billion. That\u2019s eight times the revenue generated by Australia\u2019s coal exports\u00a0in\u00a02020.\u201d<\/p>\n\n\n\n

Federal Minister for Industry, Science and Technology Christian Porter says Australia is well placed to capitalise on growing global demand for battery systems and the critical minerals associated with their production, with the energy storage market expected to be worth almost US$20 billion ($27.2 billion) by 2027.<\/p>\n\n\n\n

\u201cAustralia\u2019s resource sector is world-class. Through our $1.3 billion Modern Manufacturing Initiative, we are helping to unlock this enormous potential by providing targeted support for projects that will deliver big rewards for our local economy in terms of export earnings and new job opportunities,\u201d Porter says.<\/p>\n\n\n\n

\u201cIt is also critical that we build our sovereign capability in this sector, with China currently the world leader in critical minerals processing including battery production.<\/p>\n\n\n\n

\u201cWhether it\u2019s building large-scale battery systems, adding value to critical minerals exports through new refining techniques, or driving the adoption of battery power in mining vehicles, these projects will increase Australia\u2019s international competitiveness and help position us a future leader in this crucial sector.\u201d<\/p>\n\n\n\n

\"Nickel
Image credit: BHP.<\/figcaption><\/figure>\n\n\n\n

Australia\u2019s nickel production<\/strong> will be a crucial part of this supply chain and price forecasts are already starting to reflect the metals promising future.<\/p>\n\n\n\n

In its June nickel price revision, Fitch Solutions predicts the 2021 average price forecast for nickel will rise from US$15,750 per tonne to US$16,500 per tonne.<\/p>\n\n\n\n

According to its Nickel Prices \u2013 Upwards Revision Amid Strong Demand report, Fitch Solutions expects nickel prices will trade lower than present levels in the coming months, as demand from steel production stabilises and nickel metal production ramps up. <\/p>\n\n\n\n

Prices (at the time of writing) have recovered from a steep price correction in March which occurred after an announcement that Chinese stainless-steel producer Tsingshan plans to bridge the NPI to battery-grade nickel divide by the end of 2021 and substantially increase nickel production for both 2022 and 2023. <\/p>\n\n\n\n

Subsequently, nickel prices fell to US$16,450 per tonne. In May, prices reached a four-week low in response to Chinese regulators warning domestic commodities firms to keep the market fair after base metals experienced a strong rally. <\/p>\n\n\n\n

Prior to the Tsingshan announcement, nickel prices had progressed to multi-year highs on the back of increased optimism in the market, a weakening dollar and expectations about future nickel supply deficits. <\/p>\n\n\n\n

Fitch Solutions also predicts that the EV market will be a source of growing demand as the use of nickel in lithium-ion battery compositions increase<\/strong>.\u00a0<\/p>\n\n\n\n

\u201cChina will once again be a key source of demand in this respect, particularly as manufacturers begin to use higher nickel content batteries in their EVs,\u201d Fitch Solutions states. <\/p>\n\n\n\n

\u201cWe expect this trend to begin taking hold over the coming years as consumers favour EVs with longer driving distance capabilities before recharging, making nickel-based battery compositions the optimal choice for vehicle producers.\u201d <\/p>\n\n\n\n

According to Denholm, Australia has a competitive opportunity to enhance its environmental, social and governance (ESG) practices for the future as the global market for electric vehicles grows.<\/p>\n\n\n\n

\u201cTesla is the world\u2019s largest manufacturer of electric vehicles and battery storage systems,\u201d Denholm says.<\/p>\n\n\n\n

\u201cAt the heart of everything we do in our quest to accelerate the transition to sustainable energy is the lithium-ion battery \u2013 one of the most important technologies of the century.<\/p>\n\n\n\n

\u201cThere is a global transition to sustainable energy underway and this presents a huge opportunity for Australia.\u201d<\/p>\n\n\n\n

In July, BHP agreed to supply Tesla with nickel from its Nickel West assets<\/strong> in Western Australia in a collaboration which will aim to make the battery supply chain more sustainable.<\/p>\n\n\n\n

Western Australian Mines and Petroleum Minister Bill Johnston says the agreement highlights that the state hosts the best quality raw materials integral to the world\u2019s decarbonisation efforts. <\/p>\n\n\n\n

\u201cIt also reinforces the level of comfort global brands have in investing in the state knowing that raw materials are responsibly sourced,\u201d Johnston says.<\/p>\n\n\n\n

\u201cAs investors and the community are increasingly holding mining companies to the highest ESG standards and practices, the supply agreement between BHP and Tesla reflects the regulatory framework in place in Western Australia that ensures the sustainable production of battery materials.\u201d<\/p>\n\n\n\n

Denholm believes Australia should prioritise onshore refining of its lithium to save costs and reduce emissions.<\/p>\n\n\n\n

\u201cThere\u2019s another reason for Australia to prioritise onshore refining; it\u2019s a huge economic opportunity,\u201d she says.<\/p>\n\n\n\n

\u201cTesla estimates that last year, Australia supplied approximately 49 per cent of the world\u2019s lithium ore \u2013 spodumene \u2013 but zero per cent of the refined product suitable for battery cells<\/strong>. That lithium sold for about $US100 million \u2013 but if it was processed onshore in Australia the value would have been more like $US1.7 billion.<\/p>\n\n\n\n

\u201cSo that\u2019s a $US1.6 billion annual opportunity and growing.\u201d <\/p>\n\n\n\n

This story also appears in the August issue of <\/em>Australian Resources & Investment.<\/p>\n","protected":false},"excerpt":{"rendered":"

BHP will supply nickel for Tesla\u2019s electric vehicles. Industry leaders predict critical minerals for battery technologies will lead to significant opportunities for the nation\u2019s growing resources sector. Australia is expected to be at the forefront of the electric vehicle (EV) boom with key industry figures signalling that a combination of critical minerals for battery production … Continue reading “Electric vehicles to drive Australia\u2019s mining future”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[6,34],"tags":[],"class_list":["post-8039","post","type-post","status-publish","format-standard","hentry","category-mines-and-quarry","category-new-tech-new-product"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p83F9T-25F","jetpack-related-posts":[{"id":7976,"url":"https:\/\/yinghuiinternational.com\/index.php\/2021\/06\/07\/australia-in-box-seat-for-rare-earths\/","url_meta":{"origin":8039,"position":0},"title":"Australia in box seat for rare earths","author":"yinghui","date":"June 7, 2021","format":false,"excerpt":"Australia has well positioned to benefit from the rise of critical minerals, according to the federal government\u2019s Outlook for Selected Critical Minerals Australia 2021 report. 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