Column: Electric dreams turn into a nightmare for battery metals
A sector that was once racing to build new supply has been closing mines and deferring projects as low prices bite into the cost curve.
A recent report by S&P Global Platts highlights that the European Commission plans to propose EU sustainable battery rules by October.
The goal behind the rules, which are set to become binding by 2022, is to challenge China’s dominance of the global battery market. This objective involves securing a European supply of raw materials like lithium and developing a circular economy for all batteries produced or sold in the old continent.
The EU is expected to need up to 18 times more lithium and five times more cobalt by 2030
According to S&P, there are already four sustainable lithium mining projects underway that are set to meet up to 80% of Europe’s battery sector needs by 2025.
In parallel, the union has €7.6 billion available through the Smart Specialisation Platform for innovative battery projects that concentrate on battery sustainability, performance, safety and recycling.
The EC’s focus on the battery sector is not only driven by a surge in the demand for electric vehicles, already noticeable in Q1-2020 when EVs’ share of the EU market grew to 6.8% up from 2.5% in Q1-2019, but also due to increased interest from the renewable energy, defence and space industries.
