Critical Minerals: What’s On & What’s Next

 Recent Developments

• Global Battery Alliance launches concept for the first battery passport: At the Davos World Economic Forum on January 18, the Global Battery Alliance (GBA) launched the world’s first battery passport proof-of-concept pilots, which will track and detail the sourcing, processing, and manufacturing of each part of the battery materials across the supply chain. As GBA’s flagship initiative, it will be key in the scaling of sustainable, circular, and responsible value chains, which is key to meeting Paris Climate Agreement targets. The battery passport prototypes use data from Audi and Tesla to detail information regarding the battery’s technical specifications and material provenance, as well as reporting against key sustainability performance indicators to show the battery’s carbon footprint, child labor, and human rights performance, among other relevant data. The GBA will continue to improve and develop this concept to create a streamlined framework for members to implement. This transparency in the sector will be key to facilitating the energy transition ethically.
  • This concept was developed over three years by GBA’s members, including global battery manufactures, automotive companies, IT solution providers, and leading NGOs and international organizations. Additionally, it has been endorsed by the 2021 G7 Leaders Meeting, in the EU Battery Regulation, and by the U.S. and Canadian governments.

• EU President Ursula von der Leyen announces new plan to boost clean technologies: During President Ursula von der Leyen’s Special Address at the World Economic Forum in Davos on January 17, she announced the “Green Deal Industrial Plan,” which aims to make Europe the center of clean technologies and industrial innovation. While specific details of the plan, including funding opportunities, have not been announced, the plan will focus on four key pillars: the regulatory environment, financing, skills, and trade.
  • The first pillar, centered on improving the speed and access of the permitting process, will be supported by a new Net-Zero Industry Act, which will set clear goals for European clean technologies by 2030 and use the same structure as the Chips Act. Notably, it will support the Critical Raw Materials Act to improve the critical minerals supply chain in Europe while working with partners like the United States.
  • The second pillar, centered on increasing investment and financing of clean technologies, aims to increase Europe’s attractiveness for new investments by adapting state rules and simplifying the investment process. This pillar will involve creating a new European Sovereignty Fund, which will be part of the budget process later this year and aims to counteract the United States’ Inflation Reduction Act.
  • The third pillar, centered on developing skilled workers, will focus on developing a skilled workforce throughout all processes, including finance and regulations.
  • The fourth pillar, centered on facilitating open and fair trade, aims to develop strong supply chains within the EU and with key global partners. At the same time, this pillar aims at addressing unfair trade, specifically with China, which has prioritized clean technology supply chain control and uses subsidies, low wages, and cheap energy. The EU will use the new Foreign Subsidies Regulation to address unfair practices and will open investigations should markets be distorted by subsidies.

• Saudi Arabia’s Industry and Minerals Ministry and the Diriyah Gate Development Authority sign agreement to regulate the mining industry: On January 15, the Saudi Ministry of Industry and Mineral Resources signed a Memorandum of Understanding with the Diriyah Gate Development Authority (DGDA), allowing for further cooperation in common fields and regulating the mining industry. This includes developing mechanisms to individual monitor compliance, using their respective authority to most efficiently implement policies and regulations, and sharing relevant data and studies collected. The MoU aligns with the Kingdom’s plan to preserve natural resources, while maximizing utilization. Currently, there are 145 exploration license applications from foreign companies to develop valuable minerals, including gold, copper, and zinc.
  • Additionally, Angolan Ambassador to Saudi Arabia Frederico Manuel dos Santos e Silva Cardoso said the country is interested in working with the Kingdom to develop and excavate copper, nickel, and lithium, reasoning infrastructure developments would be a valuable area of cooperation. The Ambassador’s comments follow the Federation of Saudi Chambers and the Chamber of Commerce and Industry in Angola’s MoU to boost economic ties.

• U.S. Department of Energy announces $700 million conditional loan to ioneer Ltd: The U.S. Department of Energy’s Loan Program Office (LPO) offered ioneer Ltd a conditional commitment to lend up to $700 million for the company to develop its Ridge Lithium-Boron Project in Esmeralda County, Nevada, on January 13. The offer, made under the LPO’s Advanced Technology Vehicles Manufacturing (ATVM) Loan Program, is the first lithium extraction loan under the program and adds to the $8 billion already loaned for mineral processing and upgrading and building automotive facilitates. Once operational, the project could produce enough lithium for 370,000 electric vehicles a year, reducing annual gas consumption by roughly 145 million gallons and preventing 1.29 million tons of carbon dioxide from entering the atmosphere each year.
  • The DOE’s announcement noted that “the urgency to secure critical materials for batteries is expected to rapidly increase in the coming years as demand for lithium is projected to exceed current global production by 2030. This is subsequently causing U.S. auto manufacturers to seek a robust domestic supply of critical materials to keep pace with the increased demand.” Additionally, the “LPO expects the project to further develop a socially and environmentally responsible U.S. supply chain for lithium.”
  • Senator Jacky Rosen (D-NV) applauded the commitment, saying the loan will “help support the mining and processing of Nevada’s critical minerals, help reduce greenhouse gas emissions, and contribute to the creation of jobs in our state.”

• LKAB identifies largest deposit of known rare earth minerals in Europe: LKAB, a Swedish government-owned mining company, announced it had identified a mineral deposit containing over one million tonnes of rare earth oxides in northern Sweden near Kiruna on January 12. This finding is significant for the company, region, and the European Union because there are currently no rare earth mines in Europe that are needed for the clean energy transition. According to LKAB’s press release, the company aims to submit an application for an exploitation concession in 2023 to further analyze the deposit. The company believes the project will not be fully operational for at least 10-15 years based on similar projects. However, with strategic raw material demand expected to increase fivefold by 2030, the EU expected to address the time it takes to permit a mine through the Critical Raw Materials Act, which is expected to be released in March 2023.
  • President and CEO Jan Moström stressed the importance of the bill, saying, “We must change the permit processes to ensure increased mining of this type of raw material in Europe. Access is today a crucial risk factor for both the competitiveness of European industry and the climate transition.”
  • Additionally, in response to the news, Sweden’s Energy and Industry Minister Ebba Busch said, “Politics must give the industry the conditions to switch to green and fossil-free production.”

• Mexican President discusses private lithium mining developments exiting the market: On January 12, Mexican President Andrés Manuel López Obrador said he was in talks with lithium mining companies who have started lithium mining projects to abandon their plans. With Mexico nationalizing lithium mining and extraction by giving exclusive mining rights to state-run companies, President Obrador made it clear that private companies would not be permitted to produce lithium without the government. Additionally, he said the state is willing to defend its mineral rights in the courts if necessary. Currently, the Mexican government has no lithium mining projects.
  • U.S. Assistant Secretary of State for Western Hemisphere Affairs, Brian Nichols, urged Mexico to open its lithium market to the private sector, claiming Mexico will require the private industry to bring lithium to market, as well as access necessary technologies to reduce production costs.
  • The U.S., Canada, and Mexico are working on a joint project to determine regional mineral reserves. Assistant Secretary Nichols said the U.S. wants to work with Mexico to develop lithium projects at a lower price by utilizing America’s private sector. Nichols highlighted Mexico’s lithium is different than other countries. Instead of lithium being extracted from stones or brine deposits, much of Mexico’s lithium is in clayey soils, which have not been extracted in large quantities yet. The U.S. maintains it is respectful of Mexican law while emphasizing there are benefits to utilizing its private sector.

• Australian Government releases guidelines for critical mineral development grants: The Australian Government released its Critical Mineral Development Program, which updates grant guidelines and provides $50 million in grants ranging from $1 million to $30 million to support downstream processing, create jobs, and support global efforts to achieve net-zero. This program is expected to accelerate the development of Australia’s critical mineral industry, as well as strengthen the global supply chain for battery metals. To qualify for funding, you must meet entity, project, and expenditure requirements, including the project being completed by March 31, 2025.
  • Grant applications will close on February 20, 2023, at 5:00 pm AEDT.
  • There will be two information sessions to answer questions on January 25, 2023, at 1:00 pm AEDT and February 1, 2023, at 1:30 pm AEDT. To register, you must email [email protected]. Additionally, a recording will be available after the sessions.

• Japan and Canada discuss mineral cooperation: Canadian Prime Minister Justin Trudeau and Japanese Prime Minister Fumio Kishida met in Canada on January 12 and discussed increasing their cooperation on critical minerals and energy. Specifically, they announced that Japan will send a delegation to meet with Canadian battery and mining companies and potential partners this spring and that Canada is planning to send a trade delegation to Japan in October. The two leaders also agreed that “China is a central challenge” and “agreed on the importance of a coordinated approach to security in the Indo-Pacific.”
  • Additionally, Canada’s Minister of Natural Resources, Johnathan Wilkinson, met with Takaichi Sanae, Japan’s Minister of State for Economic Security, to further discuss their partnership on energy and mineral security and to highlight their recent progress on critical minerals.

 Looking Ahead

• Mexico Business Events is hosting Mexico Mining Forum 2023 in Mexico City, Mexico, on February 1-2: The event will provide in-depth information about the Mexican mining industry, government priorities, and sustainable mining management.
• Hyve are hosting Mining Indaba in Cape Town, South Africa, on February 6-9: The event joins investors, financiers, operators, suppliers, and mining & exploration companies for four days of unrivaled deal-making opportunities, industry-leading discussions, and business-changing connections.
• Australia’s Mining Monthly and Mining Magazine is hosting Future of Mining Sydney in Sydney, Australia, on February 20-21: This event will provide opportunities to learn from, challenge and debate with the region’s pioneering innovators to address new solutions and shape strategies that advance the mining industry’s operational goals.
• Beacon Events is hosting Mines and Money Miami in Miami, Florida, on February 23-24: The event will look at key global trends, collaboration strategies, and the pathway toward the energy transition.
• Expogroup is hosting Minexpo Africa 2023 in Dar-es-Salaam, Tanzania, on February 23-25: The event will showcase the region’s latest technology in the mining & processing of minerals, earthmoving, safety equipment, and much more.
• The Society for Mining, Metallurgy, and Exploration (SME) is hosting MINEXCHANGE 2023 SME Annual Conference & Expo in Denver, Colorado, on February 26-March 1: The event will focus on new safety strategies, exiting advances in AI, and important initiatives for a sustainable future.
• The Prospectors & Developers Association of Canada is hosting PDAC in Toronto, Canada, on March 5-8: This event will attract up to 30,000 attendees from over 130+ countries to participate in educational programming, networking events, and outstanding business opportunities in the mining industry.
• The Association of Equipment Manufactures is hosting CONEXPO-CON/AGG in Las Vegas, Nevada, on March 14-18: This event is North America’s largest construction trade show where 1,800 equipment manufacturers meet to learn, talk, compare, and see the technology and equipment that’s going to transform your business.
• The Swiss Mining Institute is hosting a conference in Zurich, Switzerland, on March 21-22: This invite-only event of selected asset managers, fund managers, and other professional investors from all over the world will provide top quality, independent perspectives from experts within the resources sector together with presentations from 80 selected mining companies.
• Mining Journal and Aspermont are hosting Mining Journal Select in London, United Kingdom, on March 27-28: This event brings together a selection of major miners and companies with rated development projects to present to an audience of over 400 institutional and retail investors.
• Solar Media is hosting Energy Storage USA 2023 in Austin, Texas, on March 28-29: This event will provide the perfect platform to connect key industry players across the entire value chain in a buzzing US market.

 In Case you Missed It

• World Economic Forum: The great minerals scramble: how can we provide the materials needed for the energy transition?
• E&E News: S. investors tee up $210B for EVs and batteries
• Financial Times: TSX slams Canada over Chinese lithium divestment order
• Reuters: Australia raises loan to rare earths developer, announces more grants
• The Detroit News: Virginia governor scraps Ford’s bid for EV battery plant with Chinese partner
• The Wall Street Journal: EVs Made Up 10% of All New Cars Sold Last Year
• Prime Minister of Canada: Strengthening global electric vehicle supply chains with Canadian resources
• Financial Post: James Bay lithium mine wins federal approval amid Trudeau’s push to make Canada an EV player
• Atlantik-Brücke: Is the U.S. Inflation Reduction Act Hurting the German Economy?
• Bloomberg: Lithium’s Next Big Risk Is Grand Supply Plans Falling Short
• Reuters: Tesla turns up heat on rivals with global price cuts
• E&E News: Chamber of Commerce urges Congress to pass permitting bill
• Euractiv: Local resistance, a major stumbling block for EU’s critical raw materials plan
• E&E News: Energy storage executive responds to GOP allegations
• S. Representative Mike Simpson (R-ID-02): The Domestic Production of Critical Minerals for National Security
• Arab News: Saudi Astra Mining plans to set up 4 more factories with $319m investment
• E&E News: Granholm: Mich. to see big boom from EV battery surge

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