With the increasing number of electric vehicles on the road and the expansion of renewable energy projects, the demand for battery metals is expected to increase substantially. According to BIS Research, the global battery metals market is projected to surpass $28 billion by 2033, growing at a CAGR of over 8% from 2023 to 2033. The market is vital for rechargeable batteries powering devices across industries and is evolving with technological advancements and growing sustainability concerns.
On 11th October 2023, Anglo American and Mitsubishi Material, key players in the battery metals market, entered a MoU (memorandum of understanding). This partnership aims to create a copper product with proven sustainable origin, addressing the increasing demand for eco-friendly battery metals. The partnership focuses on enhancing traceability across the fragmented copper value chain. The operations involve identifying and measuring sustainability indicators relevant to industry stakeholders and end customers. They will use Anglo American's propriety digital traceability solution, Valutrax™, to trace metals and minerals from source to customer, exploring opportunities for decarbonization to reduce the overall carbon footprint of the supplied metal.
On 13th September 2023, Tianqi Lithium, a lithium mining leader based in China, invested USD 150 million in Smart, the electric vehicle joint venture of Mercedes-Benz and Geely Holding Group. The investment was made in Smart's Series A financing round. It aims to strengthen collaborations in the new energy industry chain. This initiative represents Tianqi Lithium's initial venture into the downstream end of the industrial chain, presenting a chance to enhance its comprehension of the new energy sector. The company also entered into non-binding strategic agreements with Mercedes-Benz and Geely Auto. These agreements focus on cooperation in resources, essential materials, research on lithium battery technology, lightweight materials for new energy vehicles, and software technology development.
On 24th September 2023, Nano One Materials Corp., a clean tech company based in Canada, entered a strategic collaboration and equity investment agreement with Japanese leading miner Sumitomo Metal Mining (SMM). SMM will invest C$16.9 million in Nano One, acquiring approximately 5% of the company's common shares. The collaboration aims to accelerate the commercial production of lithium iron phosphate (LFP), cathode active materials (CAM), and nickel-rich CAM chemistries. The partnership also includes joint efforts in research and development to produce clean and reliable battery materials. SMM's investment reflects its commitment to transforming the battery materials supply chain, which may lead to a longer-term partnership for large-scale production in various global jurisdictions.
On 16th November 2023, Toyota Motor North America (TMNA) and Redwood Materials expanded their recycling agreement to establish end-of-life pathways for Toyota's automotive batteries. The plan includes Toyota sourcing Cathode Active Material (CAM) and Anode copper foil from Redwood's recycling activities for its new automotive battery production. This collaboration aims to create a circular supply chain, optimizing logistics, refining, and reintroducing recovered battery metals into future vehicles. As more of Toyota's electrified cars reach the end of their lifecycle, this partnership will support Toyota's North American supply chain, enhance sustainability, and contribute to the closed-loop battery ecosystem.
As announced on 15th November 2023, the Biden administration is allocating $3.5 billion from the 2021 infrastructure law to boost domestic production of advanced batteries, battery metals, and materials in the United States. This funding, part of the second phase of a $6 billion package, supports projects related to battery-grade processed critical minerals, battery precursor materials, battery components, and cell and pack manufacturing. The aim is to position the U.S. as a global leader in meeting the growing demand for advanced batteries and to strengthen the clean energy economy.
In a separate development, Canada announced a $149.5 million award to support battery company E-One Moli's lithium-ion battery cell manufacturing facility, contributing to Canada's role as a global cleantech leader. Construction of the facility is set to begin in 2024, with operations commencing in 2028.
As the global shift towards electric vehicles and renewable energy accelerates, demand for battery metals like lithium, cobalt, and nickel is poised to surge. This burgeoning market offers lucrative opportunities for the mining and technology industries. However, supply chain complexities, geopolitical uncertainties, and environmental concerns loom large.
Innovations in extraction technologies, recycling, and sustainable sourcing will be crucial to ensure a steady and responsible supply. The industry must navigate regulatory landscapes, foster international collaborations, and embrace eco-friendly practices to sustain the momentum of this critical component in the green energy revolution.
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