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TO STOCKPILE OR NOT TO STOCKPILE - BLOOMBERG REPORTS. Experts argue building up reserves is urgently needed. Creating strategic reserves of critical raw materials could contribute much faster to securing supplies for the U.S. economy than new mining projects. At least that’s how industry insiders see it, according to Bloomberg. Instead of investing billions in projects that may not deliver results for many years, 600 million dollars could buy enough gallium, germanium, and cobalt for two years. The export restrictions and bans imposed by China demonstrated the urgency of securing access to technology metals and rare earths last year. In the meantime, exports of gallium, for example, came to a standstill as export licenses had to be obtained. At the same time, China’s strategy about resources could be a role model, Bloomberg quotes other voices from the industry. There, the National Food and Strategic Reserves Administration manages stocks and stabilizes the market by buying or selling if necessary. According to experts, the agency has good timing when intervening. According to estimates, it manages two million tons of copper, among other things, and makes decisions much faster than its US counterpart, the Department of Defense’s Defense Logistics Agency (DLA). The DLA must submit applications to Congress to purchase resources, which can take a whole year for approval, Bloomberg continues. The International Energy Agency (IEA) has also recently advocated building up reserves of raw materials. In this context, IEA Chairman Fatih Birol referred to the mechanism for maintaining the oil supply. The agency was founded in 1974 to avert shortages of fossil fuels. In contrast to crude oil, which the IEA members are obliged to hold in stock, the IEA advocates voluntariness for critical raw materials in a recent communiqué. Source : rawmaterials.net

Researchers have discovered vast deposits of critical battery metals, including cobalt, nickel, and manganese, near Japan's Minami-Torishima island. The deposits, estimated at 230 million tonnes and spread across 10,000 square meters of seabed, could meet Japan's cobalt needs for 75 years and nickel demand for over a decade. This discovery has the potential to significantly boost Japan's electric vehicle industry by reducing its reliance on imports and enabling the country to compete with China in the global market. The research team, consisting of the Nippon Foundation and the University of Tokyo, plans to begin extracting the minerals by 2026, with the goal of commercializing production and establishing a domestic supply chain from mining to manufacturing. This finding could help Japan become a truly science, technology, and ocean-oriented nation while contributing to the development of eco-friendly products and technologies.

UNITED STATES AND UZBEKISTAN INK MOU ON STRATEGIC METALS: The Central Asian country holds substantial reserves of critical minerals and could become a potential major supplier. The United States and Uzbekistan will expand their collaboration on critical minerals. On Monday, U.S. Ambassador to Uzbekistan Jonathan Henick and Uzbek First Deputy Minister of Geology Omonullo Nasritdinxodjaev signed a Memorandum of Understanding (MoU) in Tashkent. Under the MoU, the two nations will intensify cooperation in the critical minerals sector to catalyze investment into Uzbekistan’s industry, setting it up to become a major supplier. In September of last year, President Biden met with his counterparts from Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan at the C5+1 Presidential Summit. Biden then proposed launching a Critical Minerals Dialogue to develop Central Asia’s mineral wealth. The now-signed MoU advances these efforts, the U.S. embassy in Uzbekistan. Following the signing ceremony, Ambassador Henick told journalists that the green economy is the fastest-growing industry but requires “enormous” amounts of critical minerals. He emphasized Uzbekistan’s vast natural resources and its role as a potential major supplier. The MoU would help build robust supply chains and help boost government-to-government as well as industry-to-industry relations. However, Hinick acknowledged that the agreement is only part of a long effort, and some challenges remain, such as long exploration stages and environmental questions. According to the U.S. Geological Survey, Uzbekistan is the world’s fourth-largest producer of rhenium, a transition metal used to make so-called superalloys. In addition, the country is among the leading gold, cadmium, molybdenum, and uranium producers. The Central Asian country also holds vast reserves of other critical minerals, such as copper, silver, tungsten, and zinc. In addition, it seeks to ramp up the production of rare earth elements needed for permanent magnets, for example. Hence, the United States is not alone in eyeing Central Asia for critical minerals. Just this week, Germany signed a similar agreement with the Uzbek Government (we reported). SOURCE: partner rawmaterials.net

Main Materials for Lithium-Ion Batteries and Their Sources (Ranked by Rarity) 1. Cobalt (used in Lithium Cobalt Oxide, NMC, NCA) - Sources: Democratic Republic of Congo (DRC) is the largest supplier, accounting for about 70% of the world’s cobalt production. - Rarity: Cobalt is relatively rare compared to other materials and has significant ethical concerns related to mining practices. 2. Nickel (used in NMC, NCA) - Sources: Indonesia, Philippines, Russia, Canada, Australia, and other countries. - Rarity: Nickel is less rare than cobalt, but the increasing demand might strain supply. 3. Lithium (used in all cathode materials) - Sources: Chile, Australia, Argentina, China. Notably, Chile’s Atacama Desert and Australia’s mines are major suppliers. - Rarity: Lithium is more abundant but its extraction and refining processes are limited, potentially impacting supply. 4. Manganese (used in Lithium Manganese Oxide, NMC) - Sources: South Africa, China, Australia, Gabon, and other countries. - Rarity: Manganese is relatively abundant and the supply risk is low, though specific quality requirements might pose challenges. 5. Graphite (used in anode materials) - Sources: China is the largest supplier, providing about 70% of the world's natural graphite. Synthetic graphite is mainly produced in Japan and South Korea. - Rarity: Natural graphite supply is highly dependent on China, posing a supply risk. 6. Iron Phosphate (used in Lithium Iron Phosphate) - Sources: China, India, USA, and other countries. - Rarity: Iron is very abundant and there is low supply risk. These materials are geographically concentrated, and the supply can be affected by the political and economic conditions in these regions.

Kazakhstan is rapidly strengthening its position in the global market for critical minerals, which play a key role in the energy transition and the development of the electric vehicle market. According to an analytical review presented by AIFC experts, the country has significant reserves of metals such as lithium, nickel, gold, and rare earth metals, opening up new export opportunities.  ⚱ Gold  • In 2022, Kazakhstan ranked 14th in terms of gold reserves globally and 7th in terms of gold production, according to the US Geological Survey. • According to official statistics, Kazakhstan's share in world exports is less than 1%. • Over the past 10 years, global annual demand for gold has been stable, amounting to about 4.4 thousand tonnes.  🔋Lithium  • Depending on the scenario of green technology development, global annual demand for lithium is expected to increase from 130 thousand tonnes in 2022 to 312-721 thousand tonnes by 2030. • In March 2024, the Korean Institute of Geological and Geophysical Research and Mineral Resources discovered a new lithium deposit with a content of 5.3% in East Kazakhstan. Its estimated value may amount to $15.7 billion.  🔹 Nickel  • Although Kazakhstan is among the top 20 countries in nickel reserves with about 1.5 million tonnes or 2% of world reserves, its share in the global market is insignificant and close to zero.  • Global annual demand for nickel is expected to increase from the current 3 million tonnes to 3.9–5.8 million tonnes by 2030 and to 4.8–6.5 million tonnes by 2050.  🔻 Rare earth metals  • Since 2020, the export of rare earth metals in Kazakhstan has increased 4.6 times in dollar terms and 3.8 times in real terms.  • In May 2024, the Senate of Kazakhstan stated that the potential resources of rare metals and rare earth metals in Kazakhstan may include about 5,000 deposits worth $46 trillion.  The strategic development of these areas will allow Kazakhstan not only to become a key supplier of raw materials but also to integrate into global supply chains with processing and technological applications within the country. You can explore the overview further by accessing it through this link below 👇 https://lnkd.in/dBjKbRpe

By Dr. Amit Tripathi Looming mineral supply squeeze and global market response: Mineral Supply Chains and the Coming AI Surge The mineral exploration sector globally faces significant challenges in attracting investment, particularly when considering the additional hurdles posed by achieving net-zero emissions. For decades, the global mining industry has been grappling with the consequences of chronic underinvestment in exploration for new mineral deposits. This trend, coupled with the geographically concentrated nature of existing mines and processing facilities in often politically volatile regions, has created a potentially precarious situation. The coming surge in demand for critical minerals driven by the burgeoning field of Artificial Intelligence (AI) threatens to exacerbate this supply crunch. A confluence of factors is emerging that suggests these obstacles can be overcome

By strategically investing in exploration, technological advancements, and responsible resource management, we can ensure a sustainable supply chain that fuels both technological progress and a clean energy future. This trend is likely to accelerate and pave the way for a future where increasing investment in responsible, technology driven exploration activities contribute to a sustainable and resource-secure future.

GERMANIUM: FIRST SHIPMENT ANNOUNCED FROM CONGO TO EUROPE - China, the world’s largest germanium producer, imposed export restrictions in August 2023. Gecamines, the Democratic Republic of Congo’s state-owned mining company, has announced the first shipment of germanium concentrate to Europe, Reuters reports. The concentrate is produced by Gecamines subsidiary STL in the southern town of Lubumbashi and shipped to Belgian materials technology company Umicore for further processing. STL recovers germanium and other critical minerals, such as cobalt, copper, and silver, from Big Hill, a tailing dump hosting an estimated 14 million tons of metal-containing slags accumulated from a century of mining activity in the DRC’s south. The agreement between Umicore and STL was signed in May (PDF) with plans to make the inaugural shipment in the fourth quarter. While the mining company aims to benefit from Umicore’s expertise, the Belgian company seeks to diversify its germanium supply sources. Umicore uses germanium to create materials for optical and electronic applications, including fiber optics, solar cells, and electronics. In July, Gecamines said it aims to reach an annual germanium output at Big Hill of 30 tons. Although more recent data is difficult to obtain, the United States Geological Survey estimated global production in 2021 to be 140 tons (PDF), making STL’s target output a substantial amount. In August 2023, China, the world’s largest producer of the technology metal, imposed export restrictions on germanium and gallium. In the aftermath, shipments abroad came to a standstill and have since developed differently. Gallium exports have since stabilized, while germanium shipments remain below figures prior to the restrictions. To address possible future disruptions, Western nations have ramped up efforts in recent years to diversify supply chains and forge partnerships with other resource-rich nations. The United States, the then-head of the Minerals Security Partnership, praised the agreement between STL and Umicore following the signing, highlighting that the deal would increase the global supply of germanium. The MSP is a multilateral association comprising 14 nations and the European Union that seeks to connect industry nations with resource-rich countries. SOURCE: partner Rohstoff.net

China’s Cobalt Supply Dominance by 2030 https://ift.tt/G5ZUHz7 See this visualization first on the Voronoi app. Use This Visualization Visualizing China’s Cobalt Supply Dominance by 2030 This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources. Chinese dominance over critical minerals used in technologies like smartphones, electric vehicles (EVs), and solar power has become a growing concern for the U.S. and other Western countries. Currently, China refines 68% of the world’s nickel, 40% of copper, 59% of lithium, and 73% of cobalt, and is continuing to expand its mining operations. This graphic visualizes the total cobalt supply from the top 10 producers in 2030, highlighting China’s dominance. The data comes from Benchmark Mineral Intelligence, as of July 2024. Cobalt Production (tonnes) Non-Chinese Owned Production Chinese Owned Production 2030F (Total) 2030F (Share) DRC 94,989 109,159 204,148 67.9% Indonesia 23,288 25,591 48,879 16.3% Australia 7,070 0 7,070 2.4% Philippines 5,270 0 5,270 1.8% Russia 4,838 0 4,838 1.6% Canada 4,510 0 4,510 1.5% Cuba 4,496 0 4,496 1.5% Papua New Guinea 541 3,067 3,608 1.2% Turkey 2,835 0 2,835 0.9% New Caledonia 2,799 0 2,799 0.9% ROW 10,336 1,901 12,237 4.1% Total 160,974 139,718 300,692 100.0% China’s Footprint in Africa Cobalt is a critical mineral with a wide range of commercial, industrial, and military applications. It has gained significant attention in recent years due to its use in battery production. Today, the EV sector accounts for 40% of the global cobalt market. The Democratic Republic of Congo (DRC) currently produces 74% of the world’s cobalt supply. Although cobalt deposits exist in regions like Australia, Europe, and Asia, the DRC holds the largest reserves by far. China is the world’s leading consumer of cobalt, with nearly 87% of its cobalt consumption dedicated to the lithium-ion battery industry. Although Chinese companies hold stakes in only three of the top 10 cobalt-producing countries, they control over half of the cobalt production in the DRC and Indonesia, and 85% of the output in Papua New Guinea. Given the DRC’s large share of global cobalt production, many Chinese companies have expanded their presence in the country, acquiring projects and forming partnerships with the Congolese government. According to Benchmark, Chinese companies are expected to control 46% of the global cobalt mined supply by 2030, a 3% increase from 2023. By 2030, the top 10 cobalt-producing countries will account for 96% of the total mined supply, with just two countries—the DRC and Indonesia—contributing 84% of the total. Learn More on the Voronoi App  If you enjoyed this post, be sure to check out this graphic, which shows estimated cobalt production by country in 2023. The post China’s...

Credit to The Economist Jul 28th 2024 China is itching to mine the ocean floor https://lnkd.in/gVfwJX9K SCATTERED ACROSS the ocean floor are trillions of lumps of nickel, copper, cobalt and manganese. Companies have long wanted to mine them: these “critical minerals” are needed in vast quantities to electrify the global economy and cut dependence on fossil fuels. But the International Seabed Authority (ISA), a UN body, is still figuring out how mining should be regulated. Demand for critical minerals might more than double by 2040 compared with 2020, according to the International Energy Agency, a forecaster. China is a big reason why. It makes most of the world’s solar panels, electric cars and batteries, all of which require such minerals. Last year clean-energy industries accounted for 40% of the growth of its GDP, according to the Centre for Research on Energy and Clean Air, a think-tank in Finland. But China has to import many of the critical minerals it uses. Its manganese comes from South Africa, Gabon and Australia. Most of its cobalt comes from the Democratic Republic of Congo. Its nickel largely comes from the Philippines and Indonesia. These dependencies worry China’s leaders. They fear supplies could be disrupted by political turmoil or pressure from rivals like America. The scramble for critical minerals is “a new front for strategic competition among global powers”, says China’s national intelligence agency. The ISA has authority over the seabed in international waters under the UN Convention on the Law of the Sea (UNCLOS). The ISA is largely financed by its member countries, and China gives it more money than any other donor. In total the ISA has issued 31 licences allowing the holders to explore for minerals in preparation for commercial operations. Three Chinese miners—China Ocean Mineral R&D Association, China Minmetals and Beijing Pioneer Hi-Tech Development—hold five between them, more than any other country’s miners. China wants tp secure mineral supplies in order to help “rejuvenate the Chinese nation”. Chinese companies must expand operations until they “cannot be dislodged” from global supply chains. Deep-sea mining involves sending a large robot to the seabed to hoover up lumps of metal, known as nodules. A support ship then sucks up the nodules through a pipe. All this is tricky because of the low visibility and high pressure at the bottom of the sea. China’s technology is not quite cutting-edge. All this worries environmental groups. The deep-ocean floor supports thousands of unique species, from microbes to sponges. Even with strict regulation and responsible operators, mining robots are likely to cause damage. They can kill the organisms they drive over; the plumes of sediment they create can kill more. Chinese miners, moreover, do not have a record of being responsible even on land, where their activities are easier to monitor.