Rechargeable Batteries

Rechargeable Batteries

  • A recent report by the United Nations Conference on trade and development (UNCTAD) said the supply of raw materials required to produce rechargeable batteries is uncertain.
  • Rechargeable batteries are crucial to move to clean energy.
  • The report is named Commodities at glance: Special issue on Strategic battery and minerals.

Overview

  • The report also talks about facilitating research into battery technologies depending less on critical raw materials and had potential to provide higher energy density.
  • It also suggested chalking out a strategy that would allow for dynamic monitoring of raw material cycles which include
    • Processing
    • refining
    • manufacturing
    • recycling
  • This would facilitate early detection of supply risks.
  • It would enable development of mitigation strategies both at company level and national level.
  • As per the report, the critical raw materials for manufacturing rechargeable batteries are-
    • Lithium
    • Natural graphite
    • Manganese
  • There is a large demand for rechargeable batteries due to integration of electric vehicles into global transportation.
  • Consequently, the demand for raw material required for rechargeable battery manufacturing will also increase.
  • As the raw material production is concentrated in a few countries, the security of supplies should be a concern for all stakeholders.
  • Over 60 percent of the world՚s cobalt is mined in Democratic Republic of Congo.
  • 75 percent of global Lithium is mined in Australia and Chile.
  • Any disruption in supply might lead to
    • Tighter markets
    • Higher prices
    • Increased costs of rechargeable batteries
  • As the other sources of energy lose their sheen, the demand of raw materials required for manufacturing rechargeable batteries will grow.
  • Cobalt demand is expected to reach 185,000 tonnes by 2023, with about 35 per cent accounting for the EV battery sector.
  • Growth in lithium demand has been significant since 2015. It increased 13 per cent per year.

Examrace Team at Aug 27, 2021