🔋 Key Demand Drivers
Electric Vehicles
- Each EV battery requires ~200 kg of minerals
- EVs account for 70% of cobalt demand growth
- Lithium demand for EVs grows 9× by 2040 (NZE)
Grid & Renewables
- Copper demand from grid expansion up 50%
- Rare earths essential for wind turbine magnets
- Battery storage adding significant demand
🇨🇳 China
🇨🇩 DRC
🇮🇩 Indonesia
🇦🇺 Australia
⚠️ Supply Chain Vulnerabilities
- Single point of failure: China controls 60–90% of refining for most battery metals
- Export restrictions: Dec 2024 — China restricted exports of several rare earths
- DRC cobalt: 73% of mining, with ongoing conflict and artisanal mining concerns
- Lead times: New mines take ~16–20 years to develop
- Investment slowing: 2024 investment grew only 5% (vs 14% in 2023)
🚨 N-1 Supply Risk Analysis
If the largest supplier were removed from the market, how much of global demand could be met?
- Graphite (excl. China): Only 35% of demand could be met
- Rare Earths (excl. China): Only 40% of demand could be met
- Lithium (excl. Australia): 65% of demand could be met
- Cobalt (excl. DRC): 65% of demand could be met
- Nickel (excl. Indonesia): 70% of demand could be met
♻️ Copper
♻️ Lithium
♻️ Cobalt
🔄 Circular Economy Opportunities
Battery Recycling Scale-Up
- EV batteries reaching EOL: 1.5M tonnes by 2030
- Battery recycling capacity growing 25% annually
- Hydrometallurgical processes achieving 95% recovery
- EU Battery Regulation mandates recycled content
Policy Drivers
- EU: 16% recycled cobalt, 6% lithium by 2031
- US IRA incentives for domestic recycling
- China targeting 70% battery recycling by 2030
- Extended Producer Responsibility expanding