Lithium, nickel, cobalt andcopperAs sales of electric vehicles...

Lithium, nickel, cobalt andcopper

As sales of electric vehicles continue to climb (also electricbuses, trains and e-bikes), among the metals we are most bullish on, arelithium, nickel, cobalt and copper.

Copperis utilized in an EV’s electric motor and wiring. An electric vehicle containsfour times as much copper as a fossil-fueled model. We also can’t forgetresidential chargers and public charging stations which require a lot of copper– consultancy Wood Mackenzie estimates that by 2030 there will be more than 20million residential EV charging stations requiring 250% more copper. One of thelargest manufacturers of public charging stations is targeting a 50-fold increaseby 2025.

Lithiumis obviously crucial in electrification due to its use in EV batteries. Thereis no substitute for lithium and it is expected to remain the foundation of alllithium-ion EV battery chemistries for the foreseeable future.

Nickel is popular with EV battery-makers because it provides theenergy density that gives the battery its power and range. Increasing theamount of nickel in a battery cathode ups its power/range, but add too much ofit and the battery becomes unstable, ie. vulnerable to overheating and ashortening of its lifespan.

Nickelis used in both of the dominant battery chemistries for EVs, thenickel-manganese-cobalt (NMC) battery used in the Chevy Bolt (also the NissanLeaf and BMW i3) and the nickel-cobalt-aluminum (NCA) battery manufactured byPanasonic/Tesla.

Cobaltis a necessary ingredient in the battery cathode to provide stability and tomaintain the battery’s cycle life – ie, how many times the battery can bedischarged and recharged without loss of capacity

Electrification is part of the solution to averting further globalenvironmental damage/collapse due to tailpipe emissions from the burning offossil fuels in internal combustion engines. The Union of Concerned Scientistssays cars and trucks account for nearly one-fifth of all US air pollution,emitting 24 pounds of CO2 and other greenhouse gases for every gallon of gas.

Assales of electric vehicles continue to climb (also electric buses, trains ande-bikes), among the metals we are most bullish on, are lithium, nickel, cobaltand copper.

By 2025 demand for lithium (just for EV batteries, not counting inany other demand), at the low end of our projected EV market penetration, couldhit 871,000 t/yr, leaving a whopping great shortfall, unless 508,200 tonnes ofnew supply comes online between now and then.

Nowsuppose the 14-million EV figure is light, and after 10 years of Gigafactoriesand EV-makers pumping out more and more EVs, the number is 37M EVs in 2035.

37MEVs x 63kg = 2,331,000,000kg (2,3331,000t) divided by 363,000t = 6.4 yrs of2019 production.

It’strue the lithium market is currently oversupplied, at about 300,000 tonnes ofdemand versus 363,000 tonnes of supply. This accounts for the price slippage inthe lithium market recently. Some lithium miners are pulling in their sails,holding off on expanding operations until better prices return. Albemarle andSQM, the two biggest lithium producers, are both delaying plant expansions.

Australia’sMineral Resources ((MIN)) said earlier this month it is pausing operations atits Wodgina lithium project, a joint venture with US-based Albemarle, due to“challenging lithium market conditions.” Read more on link bellow.

https://www.*********.com.au/2020/02/07/ev-predictions-show-strained-metal-supply/