Study on the Critical Raw Materials for the EU 2023 ranks both...

Study on the Critical Raw Materials for the EU 2023 ranks both aluminium chain and manganese as economically important and at supply risk.








The EU study remarks on commodities relevant to S32:


Aluminium/bauxite assessment has been merged due to consistency reason and stays critical at its extraction stage (bauxite) as in the previous assessment.

Nickel, being a Strategic Raw material, is the only battery material which has never been on the list because of good supply diversification for the assessed period. Assessment however neither reflects the concentration of ownership of the projects and production capacities, nor private contractual arrangements, which may become an issue for the future. Main global producers of ores and concentrates are Indonesia 26%, Philippines 14%, Russia 10%, New Caledonia 9%, Canada 8%, Australia 8% and several smaller producers; and EU sources 39% from Finland, 24% from Canada, 19% from Greece, 8% from South Africa, 4% from the US. Main refiners are China 33%, Indonesia 12%, Japan 9%, Russia 7% and several smaller producers; EU sources refined nickel from 29% from Russia, 18% from Finland, 11% from Norway, 7% from Canada, 7% from Australia, 4% from Greece and several smaller importers.

Copper, being a Strategic Raw material, is used in very large quantities of 20 Mt in 2020 for electrification across all strategic technologies. Its supply is very well diversified, therefore it has not been considered critical before. However, it is challenging to substitute due to its superior performance in electrical applications.

Manganese, being a Strategic Raw material, used in steelmaking and batteries became critical due to Supply Risk increase at the extraction stage caused by lower domestic supply dropping from 32t to 10t (Bulgaria and Hungary production stopped) increasing import reliance and by more concentrated imports from South Africa 41% (33% in 2020) and **on 39% (26% in 2020). EI has always been very high.

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Out of that lot, Manganese is the go.

Ash