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Cobalt, Critical, Strategic and Rare Earth Minerals and Metals

Column: Tesla’s reluctant commitment to cobalt a warning to others – by Andy Home (Reuters U.S. – June 23, 2020)

https://www.reuters.com/

LONDON (Reuters) – The unpredictable Elon Musk strikes again. Just when his electric vehicle (EV) company Tesla seemed to be pivoting away from using cobalt in its batteries, it signs a long-term supply deal for the controversial metal with Glencore.

This from the man who has vowed to eliminate cobalt from the Tesla product mix because of its financial cost and the reputational cost of a metal associated with child labour and poor safety conditions at artisanal mining operations in the Democratic Republic of Congo, the world’s dominant producer.

Tesla’s not the first auto company to lock in future cobalt supplies with a miner. BMW did the same last year, also with Glencore as well as with the Bou-Azzer mine in Morocco.

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Beware of China’s Rare Earth Recycling Dominance — Is It Too Late for North America? – by Kiril Mugerman (June 10, 2020)

https://ressourcesgeomega.ca/

Kiril Mugerman is President & CEO of GeoMega Resources, a rare earth clean technologies developer for mining and recycling. kmugerman@ressourcesgeomega.ca

Rare earth elements (REE) are used in many devices that people use every day including mobile phones, catalytic converters, magnets, fluorescent lighting, computer memory, DVDs, rechargeable batteries, and much more.

China, which produces more than 90% of the world’s REE, plays a dominant role in producing rare-earth elements—one that is forcing users of these metals to look for alternative sources.

REE are not rare as their name might imply and, in fact, have abundancies in the Earth’s crust that range from as high as that of copper, cobalt and lithium and to as low as that of tin.

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Tesla Addresses Zero-Cobalt Future in Latest Impact Report – by Jowy Klender (Auto Body News – June 9, 2020)

https://www.autobodynews.com/

Tesla outlined its goal for responsible cobalt sourcing in its latest 2019 Impact Report, released on June 8.

The automaker plans to eventually produce a zero-cobalt battery for its vehicles and energy products, in its bid to source metals in a responsible fashion that maintains not only the integrity of the company but also the human rights of those involved in the sourcing of raw materials.

“Tesla’s batteries use nickel-rich cathode materials which contain less cobalt than other widely use cathode chemistries in the industry with our ultimate goal being to eliminate cobalt completely from our cells,” notes Tesla in its Impact Report.

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DRC artisanal cobalt ‘vital’ to market balance, but getting harder to track: Mining Week – by Diana Kinch and Richard Rubin (S&P Global Platts – June 9, 2020)

https://www.spglobal.com/

London — Artisanal supplies from the Democratic Republic of Congo are vital to keep the cobalt market balanced, but have become harder to track and audit due to a higher incidence of local processing, participants in an introductory webinar to DRC Mining Week said June 9.

“Since 2016, most artisanal ore is blended and processed into cobalt hydroxide in the DRC, making it harder to track and audit supply chains,” said George Heppel, senior analyst, CRU Group, on the webinar organized by DRC Mining Week together with Mining Review Africa.

This contrasts to the situation before that date, when artisanally mined (ASM) cobalt was traditionally shipped directly to China in the form of concentrates, making it easy to trace, according to the analyst.

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Australia to supply critical minerals to India (Mining Technology – June 5, 2020)

https://www.mining-technology.com/

Australia has signed a memorandum of understanding (MoU) to supply India with critical minerals needed for the new-energy economy.

The latest announcement comes following the virtual summit between India’s Prime Minister Narendra Modi and his Australian counterpart Scott Morrison.

Australia Resources Minister Keith Pitt said: “My department has worked closely with the Ministry of Mines to develop the MoU, which focuses on avenues to increase trade, investment and R&D in critical minerals between our two countries.

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The Criticality of Developing a ‘Made in Canada’ Scandium Supply Chain – by Peter Cashin and Phil Chataigneau (June 5, 2020)

https://imperialmgp.com/

Peter Cashin is President & CEO of Imperial Mining Group and Phil Chataigneau the company’s Strategic Marketing Analyst.

Scandium has long been recognized as a grain‐refiner and hardener of aluminum alloys, however research and development completed to date in order to expand the use of this high-technology metal has been limited because global supply has been severely constrained. The limited availability of scandium in the commercial market, estimated at 35 metric tonnes per year, and the lack of an assured source of supply to provide material for new technologies and applications have limited its market growth.

Critical applications, although intriguing from a performance and capabilities enhancement standpoint, have been limited or ignored due to the lack of a reliable source of supply, high current cost, no scandium presence in the US Defense Stockpile and a 100% import reliance on China and Russia.

A new and reliable source of supply could enable the realization of the substantial benefits of scandium-aluminum alloy in aerospace and automotive lightweighting, military platform development and in fuel cell production.

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U.S. opens national security probe into vanadium imports (Reuters U.S. – June 2, 2020)

https://www.reuters.com/

WASHINGTON (Reuters) – The U.S. Commerce Department said on Tuesday it was opening an investigation into whether imports of vanadium, a metal used in aerospace, defense and energy applications, impair U.S. national security.

The “Section 232” probe is similar to ones that resulted in broad tariffs on steel and aluminum in 2018 and a probe underway into imports of titanium sponge.

The department said the domestic producers that petitioned the agency, AMG Vanadium (AMG.AS) and U.S. Vanadium LLC, assert that they are hurt by unfairly priced imports, value added tax regimes in other vanadium-producing countries and “the distortionary effect of Chinese and Russian industrial policies.”

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OPINION: Critical mineral supply chains essential for economic development opportunities – by Don Bubar (Northern Ontario Business – May 27, 2020)

https://www.northernontariobusiness.com/

Security of critical minerals supply has now become a major concern for government in light of the COVID-19 disruption to global supply chains. A North American solution is required to reduce reliance on China as a sole source of supply of many of our critical minerals.

North America does not have the full supply chains needed for many new technologies – such as electric vehicles, energy storage, sensor and data processing applications) and pharmaceuticals – although we do have all these minerals in the ground.

Northern Ontario is blessed with resources of many of these critical minerals, often referred to as “technology metals,” including all the elements needed in lithium-ion battery technology.

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U.S. Falters in Bid to Replace Chinese Rare Earths – by Keith Johnson and Robbie Gramer (Foreign Policy – May 25, 2020)

https://foreignpolicy.com/

“Each F-35 fighter, for instance, needs 920 pounds of rare earths;
each Virginia-class nuclear submarine requires 9,200 pounds. Tomahawk missiles, guidance  systems, and jet engines all need different combinations of alloys and specialized products using some of the 17 different rare-earth elements.”

Rising tensions with China and the race to repatriate supply chains in the wake of the COVID-19 pandemic have given fresh impetus to U.S. efforts to launch a renaissance in rare earths, the critical minerals at the heart of high technology, clean energy, and especially high-end U.S. defense platforms.

But it’s not going well, despite a slew of new bills and government initiatives aimed at rebuilding a soup-to-nuts rare-earth supply chain in the United States that would, after decades of growing reliance on China and other foreign suppliers, restore U.S. self-reliance in a vital sector.

“I think the light bulb has gone on, but we are still in a muddle about exactly what to do about it,” said David Hammond, an expert on rare earths at Hammond International Group, a consultancy.

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Bill Gates and Richard Branson have their sights on the mining sector — and investment opportunities for startups abound – by Holly Bridgwater (Smart Company.com – May 25, 2020)

SmartCompany

Tech giants are on the hunt for investment opportunities in the mining sector, in a push that is destined to change the landscape of the resources industry.

Among those leading the charge are tech billionaires Bill Gates, Jeff Bezos and Richard Branson — all backers of technology fund Breakthrough Energy Ventures (BEV). Last year, BEV joined forces with hedge fund a16z to invest in mineral exploration company KoBold Metals and its search for ‘ethical’ cobalt.

The billion-dollar fund was also instrumental in raising $20 million in Series A funding for Lilac Solutions, a mining technology company focused on transforming lithium production.

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Strategic hot spot Greenland sparks global tug-of-war – by Alex Matthews (Deutsche Welle – May 23, 2020)

https://www.dw.com/en/

The US has always seen Greenland under its sphere of influence. But the island’s increasing independence is threatening that. As it becomes more global, China and Russia see a chance to control the Arctic.

The last time the US opened a consulate on Greenland was in 1940. The German Army had just invaded Denmark and the Americans wanted to stop the Nazis gaining a foothold in the middle of the Atlantic Ocean.

This summer the US is reopening its diplomatic mission in Nuuk for the first time since 1953, as well as offering the island nation $12 million (€11 million) in investments. The money will be used to boost the territory’s mineral industries, tourism and education.

The United States’ goal this time is exactly the same it was 80 years ago. A US State Department official said a press briefing that it wants “a secure and stable Arctic where US interests are safeguarded.” But this time around it’s not Germany the US sees as challenging its interests. Now it’s Russia and China.

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US political heat puts Lynas defense contract on ice – by Colin Kruger (Sydney Morning Herald – May 25, 2020)

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

Rare earths group Lynas Corp has received a setback to its expansion plans after warning the US Department of Defense contract it was awarded last month may be on hold while the political debate heats up on whether the country should source its rare earths onshore.

In a statement to the ASX on Friday evening, Lynas confirmed media reports in the US – debating the merits of sourcing rare earths locally versus from allies or other sources – have impacted on the contract that could help fund its plants to set up a processing plant in Texas.

“Lynas remains one of two companies selected for Phase 1 of the project, however Lynas understands that the US government’s progress on Phase 1 is currently on hold those political issues are addressed,” the company said.

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Exclusive: Pentagon halts rare earths funding program pending ‘further research’ – by Ernest Scheyder (Reuters U.S. – May 22, 2020)

https://www.reuters.com/

HOUSTON (Reuters) – The U.S. Department of Defense last month reversed its decision to fund two projects to process rare earth minerals for military weapons, one of which has controversial ties to China, according to a government document seen by Reuters and three sources familiar with the matter.

The Pentagon decision is a step backward for President Donald Trump’s plan to redevelop the U.S. rare earths supply chain and reduce reliance on China, the world’s largest producer of the strategic minerals used to build a range of weapons.

Australia’s Lynas Corp (LYC.AX) and privately held U.S. firm MP Materials both said on April 22 they had been awarded funding by the Pentagon for rare earths separation facilities in Texas and California, respectively.

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RPT-COLUMN-In the coming renewable energy boom, Australia is once again the “lucky country”: – by Clyde Russell (Reuters U.S. – May 21, 2020)

https://www.reuters.com/

LAUNCESTON, Australia, May 21 (Reuters) – Which commodities and countries are best placed to emerge as winners in the post-coronavirus world, especially if the anticipated boost to investment in renewables energies actually happens?

One of the themes emerging for a post-coronavirus world is that investment should flow into renewable energies, both as economic stimulus and as a way of limiting the impact of climate change.

To this end, the World Bank released a report on May 11 stating that global production of minerals such as lithium, cobalt and graphite would have to increase by as much as 500% by 2050.

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NEWS RELEASE: Canadians want to seize opportunity in Critical Minerals (Mining Association of Canada – May 13, 2020)

Critical Minerals Essential to Healthcare, Defence and Clean Technology

OTTAWA, May 13, 2020 /CNW/ – Today, the Mining Association of Canada (MAC) released a new national poll, which highlights public enthusiasm for Canada to grow market share as a preferred global supplier of critical minerals, based on abundance and leading environmental standards.

As demand for minerals and metals continues to grow, there is increasing focus on what are referred to as “critical minerals” – vital in the aerospace, defence, telecommunications, computing, and an array of clean technologies such as solar panels and electric car batteries.

China has been a major supplier of these minerals but Canada has an opportunity to play a larger role in this marketplace, as customers look for products made to high environmental standards, such as Canada’s Towards Sustainable Mining program, developed by MAC.

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