Heavy investment in research and development, driven by the EV and renewable energy industries, is leading to an explosion in battery innovation. Europe is experiencing huge growth in the battery production space, with over 30 major battery factories either in construction or planned.
Metal has been mined in Europe for millennia and continues to be important to many European countries, but metal mining has been eclipsed by cheaper labour and energy, less stringent environmental legislation, and a higher tolerance for heavy industry in other parts of the world.
Does Europe have the potential to be globally competitive in the battery metals space? It certainly has the right geology. A long and complex geological history has endowed the continent with a wide variety of mineral deposits historically mined, including tin, copper, gold, silver, iron, and lead-zinc. Battery metals are also present: the often discussed battery metals/minerals are cobalt, graphite, lithium, manganese, and nickel, but other metals, such as aluminum, copper, iron, and tin are often required in significantly higher quantities. In addition, depending on battery chemistry, significant quantities of magnesium, phosphorus, sodium, titanium, vanadium, and zinc may be required. Most of these metals and materials exist within the reaches of Europe and are often found in existing mining districts; however, many key deposits are either not yet proven to be commercially viable, are at an early stage of exploration, or face barriers to permitting due to potential environmental and social impacts.
There has been some European lithium production on a small scale, but the deposits currently being explored are not due to be operational for many years. Many European copper and nickel deposits contain significant quantities of cobalt that are produced as by-products; however, growing demand is fueling cobalt exploration. Nickel is already key in the European mining industry in two main forms: nickel sulfide and nickel laterite. Graphite mines in Norway and Ukraine are both operational and well-positioned to provide graphite to European battery producers. Manganese is also available in significant quantities in Europe, and there are plans to re-process the tailings waste material that contains elevated levels of manganese.
Significant research is required to consider all economic and sustainability criteria. The proposed EU batteries regulation has many sustainability requirements that extend to miners, and each mine’s carbon footprint and environmental and human rights impacts will have to be assessed.
