Modern Mining July 2024

COMMODITIES OUTLOOK

Energy metals: Will demand forecasts drive mining exploration and development?

The demand for metals to power the green energy transition is not a novel concept. The well documented push towards replacing traditional fossil fuel-derived energy sources hinges largely on the capacity for ‘energy metals’ to satisfy future demand for net-zero-supporting technologies.

CAML produces copper at its 100% owned, Kounrad project in Kazakhstan.

W hilst there are six core energy metals: copper, cobalt, lithium, nickel, aluminium, and rare earths; there are many more critical minerals that contribute to green technologies. Individually, and collectively, they are crucial to the future generation, storage, and use of electrical energy. It is, therefore, natural that the shift to a green energy system is set to initiate a huge increase in the requirements for energy metals. This is reflected in the changing demand areas. Until the mid-2010s, for most minerals, the energy sector represented a small part of total demand. However, as this transition gathers pace, green energy technologies are becoming the fastest growing demand sector for energy metals. Lithium-ion batteries, the core component in electric cars and current battery-based grid-scale electricity storage solutions, are an optimal paradigm from which to observe this trend. The name ‘lithium-ion’ perhaps does not afford adequate weight to the importance of cobalt and nickel in this application, with both helping to collectively improve battery performance, longevity, and energy density. All three metals have seen a marked increase in demand. According to the International Energy Agency (IEA), “in 2022, about 60% of lithium, 30% of cobalt and 10% of nickel demand was for EV batteries. Just five years earlier, in 2017, these Copper is central to global electrification efforts and the green energy transition.

shares were around 15%, 10% and 2%, respectively.” Rare earth elements are also essential to clean energy efforts. When the blades of a wind turbine rotate, they generate kinetic energy, which is converted into electricity from the interplay between two permanent magnets with reverse polarity. These permanent magnet generators are comprised of rare earth elements, primarily because of the performance capabilities of rare earth magnets, which produce significantly stronger magnetic fields than other magnet types such as ferrite or alnico magnets. Rare earth magnets are also used in EV motors, constituting another area of demand. One particular energy metal, however, is regarded as central to electrification efforts. According to the IEA, copper is the “cornerstone for all electricity-related technologies”. The International Copper Association (ICA) asserts that “one tonne of copper brings functionality to 40 cars, powers 100 000 mobile phones, enables operations in 400 computers and distributes electricity to 30 homes.” Copper has long been considered one of the key industrialisation metals, with electronics, wiring, and white goods all being copper intensive. Globally, people are being lifted out of poverty at a record pace – with rapid urbanisation and an emerging middle class in Asia and the developing world – which

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