Battery Metal and Mineral Supply Chains

Emerging commercial-scale battery applications, such as transportation and grid storage systems, offer potential low-carbon emissions energy sources and diversification of energy supplies. These prospects triggered global industry and government collaborations to develop and implement clean energy technologies. The design and implementation of clean energy technologies includes consideration of the raw material inputs required.

Battery metal inputs essential to current technologies include lithium, nickel, cobalt, and manganese. Combinations of these elements typically comprise the battery cathode. Graphite is used as the anode material. Rare earth elements are essential for permanent magnets used in EVs and wind turbines. Copper is essential for electricity-related technologies. Increased adoption of clean energy technologies across the globe will lead to increased demand for raw materials and to integrated supply chains for delivery.

Global copper and nickel supply chains are in place. These systems include raw material production and downstream processing. Increasingly, established producers now adopt responsible sourcing initiatives to differentiate their product and to meet the rising expectations of ESG focused customers. These supply chain initiatives apply to raw materials required by clean energy technology. The Global Battery Alliance describes this trend as a circular, responsible, and just (fair) battery value chain, illustrated above.

The circular elements of the value chain include the goals of incorporating renewable energy sources with mining, improving or substituting for processed materials and designing for recovery and recycling. Responsible sourcing aspects include conforming with international expectations related to ESG throughout the value chain. Finally, a just battery value chain recognizes ensuring safe and healthy working conditions and minimizing local environmental burdens.

The mining industry focuses on the raw and processed materials stages of the value chain. Most producers adopt sustainable development principles as a normal business practice. Such principles include decarbonization targets and water stewardship concepts, among other environmental and social goals. The future will require the producers of raw materials in this value chain to remain committed to these principles.