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In its Global EV Outlook 2020, the International Energy Agency noted that in the Stated Policies Scenario, which incorporates existing government policies, the global EV battery capacity will increase from about 170 gigawatt hours (GWh) per year to 1.5 terawatt hours (TWh) per year in 2030.

 

This increases to 3TWh under the Sustainable Development Scenario that is fully compatible with the Paris Agreement, which seeks to keep the increase in global average temperature to well below 2 degrees Celsius.

 

Stationary uses are also forecast to grow with IDTechEx estimating a 38 per cent compound annual growth rate between 2021 and 2031 to a cumulative installed energy capacity of more than 1TWh.

 

https://www.iea.org/reports/global-ev-outlook-2020

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  • 2 weeks later...

where Europe leads, the others will probably follow?

 

Pending Co2 Footprint for EVs Puts Mineral Suppliers on Notice ... by Mark Story

 

https://www.sharecafe.com.au/2021/03/05/pen...iers-on-notice/

New regulation by the European Commission Regulation on Sustainable Batteries and Carbon Footprint, includes mandatory requirements on footprint rules and responsibly sourced materials used in lithium-ion battery production in the EU. From 1 January 2026, lithium-ion batteries will have to bear a carbon intensity performance class label and from 1 July 2027, must comply with maximum carbon footprint thresholds, with the EU planning to ban batteries unable to satisfy new regulations.

 

Late last week the US followed suit, with the Biden administration announcing it will sign an executive order to help create more resilient and secure supply chains for critical and essential goods. As a result, building a local EV ecosystem will become as important in the US as it is in Europe.

 

Implications for suppliers

With the onus on manufacturers to demonstrate that they are sourcing raw materials in a responsible way, Lake Resources (ASX: LKE) Managing Director Stephen Promintz says there are huge implications for Australian miners, a major provider of minerals – such as manganese, cobalt, graphite, lithium, nickel, aluminium and copper – that go into batteries of EV vehicles globally.

 

Through a digital passport, tracking all materials used in the battery composition from upstream, all suppliers will have to provide mandatory third party verification. With the battery alone accounting for 30%-plus of a total (entry level) EV vehicle cost, Promintz says the ramifications of having to disclose carbon intensity performance class labels by 2026 is something all miners providing these materials will need to think long and hard about.

 

He also notes that while pending legislation relates exclusively to the CO2 footprint, this may extend to other areas going forward.

 

From price to quality

 

One of the more obvious fallouts for the EV industry at large is the refocus away from the previous preoccupation with price as a primary factor. To help put the price consideration in the right context, investors should recognise that in last few years the cost of a Lithium-ion battery pack has reduced threefold to now be nudging the all-important $100/kWh level.

According to BloombergNEF's annual battery price survey, which considers passenger EVs, e-buses, commercial EVs and stationary storage, average pack prices will be $101/kWh by 2023. It is at around this price point at which automakers (subject to commodity price increases) should be able to produce and sell mass market EVs at comparable prices (and margins) to the internal combustion engine vehicles in some markets.

 

 

Winners and losers

 

Not all miners of materials to the EV battery market were made equally, and here's just one example. To feed the growing lithium-ion battery sector, most lithium is sourced from closed-basin brines (58%) or hard rock deposits such as pegmatites and related granites (26%), which have two diametrically different extraction processes.

As a result, there are some more obvious casualties and beneficiaries from the pending EU and US legislation around carbon footprints. For example, while Vulcan Energy (ASX: VUL) expects to commence production of Zero Carbon Lithium in 2024, and is well positioned for when the EU introduces maximum carbon footprint thresholds for industrial and EV batteries in 2027, the vast majority of its mining contemporaries who feed into the EV ecosystem are not.

 

While the cost of inputs for EV manufacturers might be same, the Co2 footprint that goes into providing those materials will differ significantly, depending on the processes being used. As a case in point, Vulcan Energy is developing its deep geothermal and lithium brine resource in the Upper Rhine Valley in Germany. Vulcan will use its unique zero-carbon lithium process to produce both renewable geothermal energy and lithium hydroxide from the same deep brine source.

 

Then there's lithium extraction from brine via a process called solar evaporation (used by companies like Lake Resources or Anson Resources (ASX: ASN)), which could be up to a fifth more Co2 friendly than the process associated with extraction of lithium from Spodumene, an aluminium silicate mineral (LiAlSi2O6) in the pyroxene family. Spodumene players in the lithium space, including companies like Albemarle Corporation (NYSE: ALB), and Orocobre (ASX: ORE) are required to use much greater heat and energy to drive the extraction process.

 

 

Lithium is just one example

While the lithium example is useful, it's important to remember that the different extraction methods applied across other rare earth minerals will, over time, separate the winners from the losers in the quest to satisfy pending EU and US legislation around carbon footprints.

 

Given Australia is an upstream provider, and neither has an EV/battery manufacturing base locally nor is likely to have one anytime soon, there is no way for the local mining sector to avoid the impost associated with reducing its CO2 footprint.

 

Owing to the sheer size of demand, it's conceivable over the next 10 years that every listed miner within the EV ecosystem , be it of lithium or other minerals , will be able to find a battery developer to accept its product, regardless of the process.

 

But in the medium term, as growing discretion on the choice of materials is coupled with the weight of money going toward ESG investing, some developers will need to look closely at their energy sources, and how they fit into the supply chain.

 

All investors in these rare earth companies need to watch this space closely.

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This was interesting...

 

I invested in Abaxx on the Neo exchange in Torronto.

 

This Podcast talks about their plans and it is basically going to capitsalise on this sort of issue.

 

earlier podcasts are more on the key points than the later podcasts

 

e.g Robert Friedland 28 November 2020 podcast.. and think about his Copper mine...powered by Hydro....

 

Smarter Markets

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which is why i am hanging on to my Talga TLG shares..

 

Build a new anode supply chain outside of Asia to serve the European and North American markets

Production of the most sustainable and lowest-cost anode for Li-ion batteries would use:

.. responsibly extracted natural graphite

... 100% sustainable electricity*

.... locally produced materials (short supply chain)

 

 

*N Sweden hydro power

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  • 4 weeks later...

earlybirds asked for some help, or direction, to look into Battery and EV stocks

 

A recent Stockhead article covers the metals side quite well, if only in listing many of the players on ASX

https://stockhead.com.au/resources/battery-...-your-kid-rich/

 

By 2030, UBS predicts we will need a lot of manganese, lithium, cobalt, rare earths, nickel and copper if car makers are to hit some very ambitious production targets.

 

They estimate EV penetration increasing from 4 per cent currently to 20 per cent of the market by 2025, and 50 per cent by 2030. That's 3 million per year to 46 million per year.

 

Meanwhile, average battery size will increase from 47kWh to 94kWh.

 

By 2030, they also predict that:

 

 

.. Lithium demand will lift ~1100% from ~400,000 to 4.4 million tonnes

 

.. Natural graphite demand grows by 700%

 

.. Demand for nickel grows from ~2.6mtpa to 5.8mtpa

 

.. Rare earths neodymium (Nd) and praseodymium (Pr) face "a step change" in demand from ~30ktpa towards ~100ktpa

 

.. Cobalt demand to expand over the next decade from around 120ktpa to over 400ktpa

 

.. And by 2030, copper consumption in EVs — which averages 90kg vs 20kg in ICE vehicles — will represent 4.4mt of copper demand or around 13% of the total

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Excellent article. This will take some time to digest. PLL (Piedmont Lithium) is one I trade frequently in the US as they are dual listed. Their share price just gotten smashed due to a recent capital raising which was over subscribed. Probably a really good time to snap this one up.
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