Bolivia’s Almost Impossible Lithium Dream – by Laura Millan Lombrana (Bloomberg News – December 3, 2018)

https://www.bloomberg.com/

A small army of workers from cities and villages across Bolivia boards the buses for the last leg of a commute that can last days. The meandering, bumpy dirt roads, the thin air at high altitude, the ordeal of bringing labor into the blinding white plain of the world’s largest salt flat—all of this stands between anyone who dreams of retrieving Bolivia’s lithium riches and turning it into electric-car batteries.

These workers will spend two weeks at the Uyuni salt flat in the southern tip of Bolivia before they return home for a seven-day rest. They are attempting to build a world-class lithium mine on top of the Andes mountains, about 12,000 feet above sea level at the heart of landlocked Bolivia. The nearest port is at least 500 kilometers and a border crossing away.

From above, this vast area appears so white it gets mistaken for a giant snow plain. The salt crystallizes in the dry season, forming millions of tile-looking hexagons that span an area as large as Connecticut. During the wet season, it’s covered by a thin layer of water that forms a giant mirror, reflecting the sky so neatly that the line of the horizon disappears. The visual effect draws thousands of visitors and the Dakar Rally every year, making it Bolivia’s top tourist destination.

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Cobalt mining shows clean energy revolution comes at a price – by Zoe Dawson (Irish Times – December 2, 2018)

https://www.irishtimes.com/

Zoe Dawson is from Dublin and studying for a master’s degree in global affairs at New York University.

As the global transition to clean energy has progressed, demand for cobalt has rocketed. A natural metallic element, cobalt has unique properties that make it a key component in the production of batteries.

Until recently, smartphones and laptops drove demand for batteries; however, the growing market for electric vehicles and renewable-energy power storage has resulted in a surge in the demand for cobalt.

The Democratic Republic of Congo (DRC) is one of the world’s wealthiest countries when it comes to natural resources and contains half of the world’s cobalt reserves. Despite the country’s natural mineral wealth, however, many challenges persist there. To facilitate the emerging clean and sustainable economy the world is highly dependent on a mineral produced via some of the most criticised practices, with no one being held accountable for the human-rights abuses taking place.

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The GM paradox: Sell more pick-ups, prepare for an electric car world – by Konrad Yakabuski (Globe and Mail – November 28, 2018)

https://www.theglobeandmail.com/

Mary Barra envisions an all-electric future for General Motors. But to get there, she first needs to bank as much profit as possible by selling millions more gas-guzzling pick-up trucks.

Therein lies the paradox of the strategy GM’s chief executive unveiled on Monday as she announced the elimination of six car models and the idling of five North American factories, including the Oshawa, Ont., facility that makes the soon-for-the-scrap-heap Chevrolet Impala sedan.

Ms. Barra is moving to shed slow-selling models and cut manufacturing capacity ahead of a possible recession, all while investing billions in the development of electric and autonomous vehicles. It’s a risky gamble for an automaker that owes its very existence to the internal combustion engine.

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Lithium producers race to dominate South American output: Roskill – by Ben Kilbey (S&P Global Platts – November 26, 2018)

https://www.spglobal.com/

London — There is a battle to be the “supreme” lithium producer in South America, with Chile now facing competition from other countries on the continent, research outlet Roskill Information Services said Monday.

Speaking at the annual Mines & Money exhibition in London, Robert Baylis, managing director of Roskill, said the global shift away from carbon to renewables and electric was creating a massive demand boost for lithium.

Baylis said he sees lithium demand growing at around 30% annually, from around 94,000 mt in 2018 to 1 million mt and above from the late 2020s. However, he cautioned that recent price volatility and weakness could be putting off increased investment on the supply side.

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BASF makes low-nickel wager amid scramble for battery metals – by Ludwig Burger (Reuters U.S. – November 23, 2018)

https://www.reuters.com/

FRANKFURT (Reuters) – German chemicals giant BASF is betting on a new recipe for electric car batteries which stretches the time between charges while cutting dependence on nickel to help shave costs and grab more of a growing market.

It is part of flurry of activity in the sphere of cathodes materials, a major component of battery cells for an anticipated switch to electric vehicles (EV) due to clean air regulation.

At the moment BASF and others, including Belgium’s Umicore, a market leader, are boosting the nickel content to allow more energy storage and replace expensive cobalt, which is largely sourced from mines in Congo, where exploitation is rife.

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Lithium King Bets Big on Demand Shift With Australia Mine Deal – by Laura Millan Lombrana (Bloomberg News – November 21, 2018)

https://www.bloomberg.com/

Albemarle Corp. agreed to pay $1.15 billion for a stake in a giant lithium mine in Australia, guaranteeing the biggest producer of the mineral greater access to a more refined form of the raw material that’s increasingly being used in electric-car batteries.

The Charlotte, North Carolina-based company will take a 50 percent stake in a potential joint venture with Mineral Resources Ltd. that will own and operate the Wodgina hard-rock lithium deposit with a mine life of over three decades. Under the deal, Albemarle will manage the marketing and sales of lithium hydroxide, which fetches a higher price than lithium carbonate. Mineral Resources rose as much as 33 percent, the most since July 2006, in Sydney trading Thursday.

Albemarle plans to expand output in Australia to gain from rising demand for lithium hydroxide, also known as spodumene. The mineral works better with cathodes containing higher levels of nickel, helping electric cars go further on a single charge. The deal signals the company’s swift reaction toward shifting demand that has previously been concentrated mostly on lithium carbonate.

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Electric Car Revolution Could Stall on Cobalt Shortage – by Stephen Gardner (Bloomberg News – November 21, 2018)

https://news.bloombergenvironment.com/

BMW Group, General Motors Co., Nissan Motor Co., Ltd., and other car companies could hit a roadblock in their efforts to put more electric vehicles on the market: a cobalt shortage.

The silvery metal, a byproduct of copper mining, is in high demand as a component of lithium-ion batteries used in electric vehicles. But there might not be enough cobalt to go around, forcing car companies to look for alternatives, potentially delaying the transition to electric motoring.

Even in a scenario in which battery technology is improved to minimize the need for cobalt, the metal will be in short supply from 2025 on, according to projections published this month by the Joint Research Centre, the in-house science service of the European Commission, the European Union’s executive arm.

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Trouble in the Congo: The Misadventures of Glencore – by Franz Wild, Vernon Silver and William Clowes (Bloomberg News – November 16, 2018)

https://www.bloomberg.com/

What a time to own the world’s most valuable cobalt mine, and to have to fight to keep it.

A dozen years ago the future of technology bounced out of a remote corner of Africa on the back of a truck, along with a world of potential trouble. Both, embodied in the same load of rock, landed in the hands of Ivan Glasenberg, chief executive officer of Glencore Plc, the world’s largest middleman for the raw materials that fuel, feed, and underpin civilization.

Glasenberg’s obsession was copper, because China’s appetite for it was insatiable, with copper wire electrifying the nation’s rising cities and running through the appliances its factories sold to the West. The metal’s price had quadrupled in less than three years, triggering a global frenzy. Miners blasted it from Chilean mountaintops and dug it from the African earth as fast as they could.

At a processing plant in Zambia, Glencore was buying up all the ore containing copper it could get its hands on when technicians noticed something extraordinary. One trader consistently rolled in with rocks showing levels of purity that were off the charts—not just for copper, but also for the blue metal cobalt.

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WA’s newest lithium mine officially opens, with plans to expand already in motion – by Hamish Hastie (Sydney Morning Herald – November 16, 2018)

https://www.smh.com.au/

The lithium train shows no sign of slowing in WA as the state’s newest mine officially opens, with plans already in motion to expand the Pilbara operation. The first shipment from Pilbara Minerals’ Pilgangoora lithium-tantalum project left the mine on October 2 but was officially opened by WA Mines and Petroleum Minister Bill Johnston on Friday.

Located 120 kilometres south of Port Hedland, the mine will produce 330,000 tonnes of lithium a year and about 300,000 pounds of tantalum. The Pilgangoora project’s workforce peaked at more than 800 during construction, but now there are about 200 operational staff on-site and in Perth.

The opening comes just more than four years to the day the first hole was drilled and is one of the fastest major lithium developments in recent history. Plans are already underway to expand the mine.

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Battery wars: Japan and South Korea battle China for future of EVs – by KITO TANAKA, TAKASHI KAWAKAMI and YUKIHIRO OMOTO (Nikkei Asian Review – November 14, 2018)

https://asia.nikkei.com/

Toyota leads ‘solid state’ push, but next-generation batteries still a decade away

OKYO/NAGOYA/OSAKA/ SEOUL/HUIZHOU, China — It is 5 p.m. on a weekday in Huizhou, a lake-studded city in China’s Guangdong Province, and workers are streaming out of a BYD manufacturing plant looking weary after a day’s work. Many head straight for the crowded street food stalls lined up in front of the factory for after-work noodles and drinks. “No matter how much overtime we work, we still have a manpower shortage,” said one worker.

The heavy workload at BYD’s Huizhou factory is just one indicator of the growing demand for the product built there: batteries for electric vehicles. BYD is one of the world’s top producers of EV batteries, and the company is racing to meet an ambitious goal of expanding its battery manufacturing capacity to 60 gigawatt-hours by 2020 — equal to half of China’s total in 2017.

Founded in 1995, BYD — whose slogan is “Build your dreams” — is China’s largest manufacturer of alternative fuel cars. In the West, the company is best known for its place in Warren Buffett’s stock portfolio. But in China, it is one of the companies at the vanguard of a national push to dominate the future of automaking.

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Abandoned Canadian silver mines could boom again as battery demand prompts gold rush in cobalt – by Peter Armstrong (CBC News Business – November 15, 2018)

https://www.cbc.ca/news/business/

Cobalt, Ont., could could be sitting on a gold mine — of cobalt — to help power electric cars, phones

The flooded bottom of an abandoned silver mine is an unlikely source of hope. But down there in the flickering light, a once worthless metal known as cobalt has sat idle for decades. Now it’s one of the most sought after metals in the world and that has many in this town in northern Ontario dreaming of boom times once again.

A century ago, prospectors came to Cobalt, Ont., in search of silver. They found it, and the town boomed. Amid all the silver, miners also found cobalt. So much that they named the town after it. Back then though, it was a mere indicator, a sign that something of actual value was nearby.

Now, all that ignored and discarded cobalt is the town’s best hope. “The potential here is huge,” says Frank Basa, chief executive officer of Canada Cobalt Works. Cobalt the metal has had a spectacular run over the past few years. And now Cobalt the town is poised to cash in.

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Chilean regulators reject Albemarle’s plans to boost lithium output – by Dave Sherwood (Reuters U.K. – November 13, 2018)

https://uk.reuters.com/

SANTIAGO (Reuters) – Chilean environmental regulators have rejected plans by Albemarle Corp (ALB.N), the world’s top lithium producer, to expand output from the Salar de Atacama salt flat, according to filings with Chile’s Environmental Assessment Service (SEA).

SEA said in a resolution on Monday that Albemarle’s environmental impact statement, which included plans to build a new plant to produce 42,500 tonnes of lithium carbonate in northern Chile, lacked key information to gauge the project’s impact, prompting an “early termination” of its review.

“The applicant [Albemarle] does not present the details necessary to rule out significant adverse impacts on the quantity and quality of renewable natural resources, including the soil, water and air,” the regulator concluded in the Nov. 12 resolution, which was first reported by Reuters.

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Ni & Co CONFERENCE: Nine key takeaways from Xiamen – by Charlotte Radford, Susan Zou and Violet Li (Metal Bulletin – November 12, 2018)

https://www.metalbulletin.com/

The spotlight was in Xiamen last week when market participants gathered to discuss hot topics in the cobalt and nickel markets, including higher cobalt prices and their impact on the market in addition to new trends for the cobalt industry.

High prices do not hurt the overall use of cobalt in consumer electronics

Cobalt prices hit a near 10-year high in April, but the blue metal’s high prices will not lead to many cobalt substitutions in consumer electronics, according to battery manufacturer ATL’s procurement director, Xu Shihui.

Cobalt demand from the consumer electronics industry will continue to grow due to new trends, including the intact adoption of lithium-cobalt-oxide (LCO) batteries in laptops and smart phones.

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‘We’re just not there’: Batteries not ready to replace fossil fuels, says lithium miner – by Cole Latimer (Sydney Morning Herald – November 5, 2018)

https://www.smh.com.au/

A battery material miner headed by global energy experts says the world is still a decade away from large batteries and renewables replacing baseload power.

Junior lithium miner ioneer, whose board includes the former chairman of lithium miner Orocobre, James Calaway; the former president of Shell, John Hofmeister; and the former head of Rio Tinto’s minerals and energy division, Alan Davies, said batteries and solar aren’t ready to replace gas or coal.

“Today, when people say you can apply lithium-ion batteries to create baseload from intermittent power they’re just not right,” Mr Calaway told Fairfax Media. “It’s too expensive. It’s a folly to think it will be a switch that just goes from one to the other. People can talk about intermittency, and how batteries will solve intermittency, it’s coming but we’re just not there.

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How Electric Vehicles Should Give a Jolt to Copper Miners – by Simon Constable (Barrons.com – November 2, 2018)

https://www.barrons.com/

Copper prices have dropped 18% in recent weeks, creating a long-term opportunity to get in on some cheap copper-mining giants with generous dividend payouts. Their prospects will depend on a major technological transition: the move from gasoline-powered to electric vehicles.

“If you’re bullish on global growth over the next 18 to 24 months, you have to own copper-related assets, especially since current prices aren’t high enough to fund new-mine development,” says Adam Johnson, founder and author of the Bullseye Brief financial newsletter. “Longer term, and this is key, rising electric-vehicle production will shift the entire demand curve since EVs require multiple times the copper content of internal-combustion engines.”

Investors should consider buying shares of a handful of European-based miners: Rio Tinto (ticker: RIO), Glencore (GLEN.UK), and Anglo American (AAL.UK). All are diversified, but they’re also among the largest copper miners. Better yet, they have hefty dividends of 5%, 5.1%, and 4.7%, respectively.

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