Miners struggle to finance projects amid surging battery demand — IEA

In
its
recent

Global
EV
Outlook
2024,
IEA
highlights
the
necessity
of
external
sources
to
support
large-scale
capital
expenditure
in
mining
projects,
however
miners
Albemarle,
Core
Lithium,
Liontown
Resources
and
Pilbara
Minerals
recently
announced
project
spending
reductions,
lower
dividends,
and

job
cuts.

Nickel
and
cobalt
projects
in
Australia
have
also
been
delayed
or
halted,
involving
companies
like
BHP,
First
Quantum
Minerals
and
Wyloo
Metals.
In
the
US,
Piedmont
Lithium
Inc.
is

letting
go
of
25%
of
staff.

“Over
the
2024-2026
period,
we
could
see
progressive
consolidation
of
critical
mineral
extraction
and
refining
projects
and
businesses
around
lowest-cost
producers,”
said
the
Agency.

Concerns
have
arisen
regarding
the
pace
of
growth
in
the
EV
industry
due
to
tight
profit
margins,
fluctuating
battery
metal
prices,
high
inflation,
and
the
discontinuation
of
purchase
incentives
in
certain
countries.

Despite
the
challenges,
global
sales
data
continue
to
demonstrate
strength.

In
the
first
quarter
of
2024,
EV
sales
grew
by
around
25%
compared
with
the
first
quarter
of
2023,
similar
to
the
year-on-year
growth
seen
in
the
same
period
in
2022.

In
2024,
the
market
share
of
EVs
could
reach
up
to
45%
in
China,
25%
in
Europe
and
over
11%
in
the
United
States.
By
comparison,
IEA
noted,
these
regions
accounted
for
around
65%
of
total
car
sales
worldwide.

In
2023,
Chinese
car
manufacturers
played
a
significant
role
in
the
global
EV
market,
producing
more
than
half
of
all
electric
cars
sold
worldwide.

Demand
for
battery
metals
saw
notable
increases
in
2023.

Lithium
witnessed
demand
of
around
140
kilotons
(kt),
representing
85%
of
total
lithium
demand
and
marking
a
more
than
30%
increase
compared
to
2022.
Similarly,
cobalt
demand
for
batteries
increased
by
15%
to
150
kt,
constituting
70%
of
the
total,
while
nickel
demand
stood
at
almost
370
kt,
up
nearly
30%
compared
to
2022.

“Mining
and
refining
will
need
to
continue
growing
quickly
to
meet
future
demand,
to
avoid
supply
chain
bottlenecks
and
make
supply
chains
more
resilient
to
potential
disruptions,”
said
the
Agency.

“Innovative
technologies
such
as
sodium-ion
batteries
can
potentially
mitigate
demand
for
critical
minerals,
together
with
the
rise
of
mature
battery
chemistries
requiring
lower
amounts
of
critical
metals,
such
as
lithium
iron
phosphate
(LFP).”