Lithium and battery technologies are at the forefront of global energy transformation in 2024. As demand for electric vehicles, renewable energy storage, and consumer electronics soars, the race to secure lithium and innovate in battery design is intensifying. This surge is driving significant advancements and investments worldwide. Discover the top lithium stories making news globally.

China’s Lithium Production Hurdles Amid Battery Supply Boom: Insights from S&P Global

China is rapidly expanding its battery supply chain, sparking concerns about lithium supply. Ken Brinsden, CEO of Patriot Battery Metals Inc., predicts that lithium prices will rise despite the recent slump. He believes China’s ongoing expansion, particularly on the more expensive side of the cost curve, will eventually push prices higher. As battery cells become cheaper, the demand for lithium-ion batteries is growing faster than anticipated. This highlights a looming imbalance in lithium demand and supply in China.

S&P Global forecasts a shortage of 8,000 metric tons of lithium chemicals by 2028, which could further spike prices. This means China might face significant supply challenges in the future.

Alice Yu, a senior analyst at S&P Global, explained that China is boosting domestic lithium production and reducing imports. However, despite higher production in China and Africa, meeting the country’s rising demand remains uncertain.

source: S&P Global Market Intelligence

Shunyu Yao, another analyst, noted a significant factor that is obstructing lithium production. He believes China’s limited natural resources restrict large-scale growth, even though the country successfully manages the cost.

Furthermore, operating costs in China and Zimbabwe remain higher than in Australia. In Sichuan, where China produces most of its lithium, harsh winters force a production halt for three to four months each year. Additionally, Qinghai province, known for its salt lakes, faced high costs due to a high magnesium-to-lithium ratio. Recent technological advancements have made these operations more competitive, but the use of “old brine” extraction methods could slow expansion further.

The research firm forecasts that even though China’s lithium supply is expected to double by 2028, it will only meet 36% of the demand for EVs.

Chinese Giant Ganfeng Lithium Invests $500M in Turkey

Ganfeng Lithium recently announced a joint venture of $500 million with Yiğit Akü, Turkey’s leading lead-acid battery manufacturer, to boost lithium battery capacity. The new facility will produce 5 gigawatt-hours of lithium battery cells and packs annually.

Ganfeng Lithium Group, the Chinese lithium resource and technology giant, is focusing on expanding its downstream battery production. Last year, 74% of its revenue came from upstream battery materials, and 23% from lithium battery cells and packs. Notably, the R&D center in Turkey will feature advanced lithium battery technologies, including solid-state and high-power batteries for marine and aerospace applications. Both companies expect to grow their overseas customer base and significantly bolster international business. However, the final agreement is still pending approval.

Benchmark’s 2024 $1.6 Trillion Battery Investment Forecast

Benchmark predicts meeting battery demand through 2040 will require at least $1.6 trillion in investment. This amount is nearly 3X the $571 billion needed to satisfy 2030 demand.

Battery demand is expected to rise from 937 gigawatt-hours in 2023 to 3.7 terawatt-hours by 2030. Demand will double again from 2030 to 2040, according to Benchmark’s Lithium-Ion Battery Database.

it further explains, of the $1.6 trillion needed by 2040, 44% will go toward building gigafactories that produce battery cells and assemble packs. As more gigafactories gear up and electric vehicles reach the end of their life, the volume of battery scrap will grow significantly. Subsequently, recycling this scrap into battery materials will require $26 billion by 2030. This would increase investment 5X to $157 billion by 2040 due to the growing amount of battery scrap.

Benchmark also discovered that among critical raw materials, lithium will require the largest investments: $94 billion for 2030 and double that for 2040. Additionally, producing cathode active materials will account for 52% of the midstream investment needed by 2040. These figures are based on Benchmark’s base case scenario. Moreover, meeting the ambitious targets set by policymakers and industry may require even greater investment.

READ MORE: Lithium Markets in Limbo: Next Leg Up or Down?

Pilbara Minerals to Acquire Latin Resources for $369.4M

Australia’s leading lithium miner, Pilbara Minerals Ltd., and Latin Resources Ltd. have agreed on a binding Scheme Implementation Agreement (SIA). Under this arrangement, Pilbara Minerals plans to acquire 100% of Latin Resources’ shares for $369.4 million. This deal will allow Pilbara to take control of Latin Resources’ Salinas Lithium Project, which could become a top global hard rock lithium operation. Located in Minas Gerais, Brazil, Salinas offers Pilbara flexibility to supply new markets, depending on prevailing market conditions.

For Latin Resources shareholders, this acquisition means an immediate premium and the unlocking of Salinas’ value. They will benefit from Pilbara’s experience in developing hard rock lithium projects and gain exposure to production from Pilbara’s Tier 1 Pilgangoora operation. For Pilbara, the deal would add approximately 20% to its Mineral Resources and 30% to its steady-state production. This move also opens up new supply opportunities for the North American and European battery markets.

Image: ASX-listed Future Capital Investment into Lithium Assetssource: Clean Energy Finance

E3 Lithium Boosts Canadian Battery Supply with New Demo Facility

E3 Lithium Ltd. plans to build a fully integrated Lithium Brine Demonstration Facility in Alberta. This project aims to produce battery-grade lithium carbonate from brines within the Leduc reservoir. Last year, the company introduced the Direct Lithium Extraction (DLE) pilot program, which was a huge success. Consequently, it will scale up the DLE system and integrate purification, concentration, and chemical conversion processes to create a comprehensive, commercial-like system.

The news release further reveals that the Demo Project will provide real-time data and samples for potential partnerships. This will optimize and reduce risks in the lithium production process. E3’s initiative is a significant step forward in establishing Alberta as a key player in the global battery supply chain. The company plans to share further details in the coming months as it finalizes the project’s design and operations.

European Energy Metals Exploration Plans for Finland

Vancouver-based European Energy Metals Corp. has submitted applications for five new Exploration Licenses (ELs) in Finland, adding to its substantial land holdings. These new ELs cover 10,220 hectares in the Kaustinen region, known for their potential in Lithium-Cesium-Tantalum (LCT) Pegmatites. With this addition, the company’s total EL holdings now reach 15,770 hectares, including the existing Nabba and Nabba 2 ELs.

Jeremy Poirier, CEO of European Energy Metals said,

“The expansion of our exploration licenses allows for more significant exploration to test and define the subsurface extent of widespread mineralization identified on the surface. In conjunction, our 2024 exploration program is designed to advance these projects and areas to a drill definition stage. The prospectivity of our tenements is highlighted by the proximity to other significant known deposits in addition to Keliber’s lithium concentrator currently under construction.”

source: European Energy Metals

The press release mentions that the company’s concessions are strategically located within 15 kms of the Keliber mine, which is set to begin production in late 2025. This area is undergoing significant development, with a €600 million investment led by Sibanye-Stillwater Limited and the Finnish Minerals Group. The project includes open-pit and underground mining, a central spodumene concentrator plant, and a lithium hydroxide chemical plant, aiming to establish a complete lithium supply chain in the region.

FURTHER READING: Why Weak Lithium Prices Will Persist in Early Q3 2024

The post Global Lithium and Battery Trends: Top Stories You Need to Know! appeared first on Carbon Credits.

Oxford University spin-off OXCCU has announced a groundbreaking development in the aviation fuel sector: the launch of the world’s first hydrogen-to-synthetic aviation fuel demonstration plant. 

Scheduled to commence operations next month at Oxford Airport in England, this innovative project marks a significant step toward achieving more sustainable aviation fuel (SAF) solutions.

What is SAF?

SAF is a liquid fuel for commercial aviation that can cut carbon dioxide emissions by up to 80%. It can be produced from various feedstocks, including waste oils, fats, green and municipal waste, and non-food crops. Below is the state of SAF as of 2023. 

Infographics from IATA website

Alternatively, SAF can be synthesized by capturing carbon directly from the air. The term “sustainable” refers to its production process, which avoids competing with food crops, water resources, or causing deforestation. 

Unlike fossil fuels, which release carbon that has been sequestered for millions of years, SAF recycles CO2 absorbed by biomass during its growth, thus reducing the overall carbon footprint. This is what the UK-based startup OXCCU is focusing on.

From Air to Aircraft: The Innovation Behind OXCCU’s Synthetic Fuel 

Backed by notable investors, including Saudi Aramco, United Airlines, and energy trader Trafigura, the OX1 plant will demonstrate a novel technology designed to convert hydrogen and carbon dioxide directly into long-chain hydrocarbons. This process uses an advanced iron-based catalyst and reactor design to achieve high conversion efficiency and selectivity, creating a cost-effective and scalable solution for producing aviation fuel.

Traditionally, producing aviation fuel from CO2 and H2 requires multiple steps. It involves CO2 first converted into carbon monoxide (CO) before being turned into hydrocarbons. 

OXCCU’s new approach bypasses this intermediate step, significantly reducing energy consumption and overall costs. 

OXCCU One-Step Process for SAF

Image from OXCCU website

The one-step, direct conversion process not only streamlines production but also minimizes the formation of unwanted byproducts, making it a more environmentally friendly option.

The OX1 demonstration plant is set to produce about 1 kilogram (1.2 liters) of synthetic aviation fuel daily. While this initial output is modest, it represents a crucial proof of concept for OXCCU’s technology. 

The company has announced plans for a larger facility, the OX2 plant, which will be in northeast England. Expected to begin operations in 2026, OX2 aims to produce 160 kilograms (200 liters) of synthetic fuel per day. 

These advancements lay the groundwork for future commercial-scale plants that will further develop and supply power-to-liquid (PtL) fuels.

In June of the previous year, OXCCU secured £18 million ($23 million) in Series A funding. Various investors supported this round, including Italian oil firm Eni and several venture capital firms. 

RELATED: Google Signs Up Shell’s SAF Program to Cut Business Travel Emissions

Could This be The New Era for Aviation?

Despite the excitement surrounding the OX1 plant, OXCCU has yet to disclose whether the hydrogen used in the pilot will be produced from renewable sources or its specific origin. The successful demonstration and scale-up of this technology are crucial for the future of sustainable aviation fuel. 

According to CEO Andrew Symes, the key to achieving widespread adoption of PtL sustainable aviation fuel is making it cost-effective. He particularly said that:

“The single-step fuel we’ve developed in the lab has generated significant excitement due to its potential to dramatically reduce SAF costs. Scaling up is crucial, and this plant will provide the necessary data and fuel production.”

The OX1 plant will provide essential data and fuel volumes needed to validate the technology’s potential and pave the way for future commercialization.

The launch of the OX1 plant is a pivotal moment for the carbon removal and sustainable aviation fuel sectors. 

According to the International Air Transport Association (IATA), SAF would be crucial in achieving net zero CO2 emissions for aviation by 2050, potentially accounting for around 65% of the necessary emissions reductions. To meet this target, a ramp-up in SAF production is necessary, with the most substantial growth anticipated during the 2030s. 

Chart from IATA website

This surge is expected as global policies become more supportive, SAF achieves cost parity with fossil kerosene, and credible carbon offsets become scarcer. 

As the world seeks to address climate change and reduce emissions, innovative solutions like OXCCU’s fuel process are essential. By demonstrating the feasibility of this technology, OXCCU is setting the stage for broader adoption of sustainable aviation fuels.

READ MORE: Turning CO2 Into SAF Via “Industrial Photosynthesis”

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Nuclear energy is emerging as a potential game-changer for the maritime shipping industry, which currently relies heavily on fossil fuels. With global shipping responsible for nearly 3% of greenhouse gas emissions, there’s a pressing need to explore cleaner energy alternatives. And the integration of nuclear power into the maritime shipping industry is gaining momentum as a promising solution to achieve zero-emission shipping.

Danish shipping giant Maersk has joined forces with Lloyd’s Register (LR) and UK-based Core Power to explore the potential for nuclear-powered container shipping in Europe. This collaboration represents a significant step in the maritime industry’s efforts to decarbonize.

Teaming Up for Nuclear-Powered Shipping

The study will focus on the feasibility of using a fourth-generation nuclear reactor for powering container ships. Unlike traditional nuclear reactors, these small and mass-produced reactors are designed to consume less nuclear fuel while being less powerful. The partnership will evaluate the necessary regulatory frameworks and safety requirements to operate nuclear-powered vessels in European waters.

Maersk’s head of fleet technology, Ole Graa Jakobsen, acknowledged the challenges associated with nuclear power while also noting that if these challenges can be overcome, nuclear power could become a viable decarbonization option for the logistics industry within the next 10 to 15 years.

Nick Brown, CEO, Lloyd’s Register, remarkably highlighted the role of nuclear in the maritime industry saying that:

“A multi-fuel pathway to decarbonising the maritime industry is crucial to ensuring we as an industry meet the IMO’s emission reduction targets and nuclear propulsion shows signs of playing a key role in this energy transition.”

Core Power’s CEO, Mikal Bøe, echoed Brown’s sentiment noting that “there’s no net zero without nuclear.”

The maritime sector has been increasingly considering nuclear fuel as a potential solution to reduce its carbon footprint. A survey conducted by the International Chamber of Shipping in May 2022 highlighted growing interest in nuclear-powered commercial ships, with some experts predicting their viability within the next decade.

The collaboration between Maersk, LR, and Core Power signals a forward-looking approach to addressing the environmental impact of shipping.

Advanced Nuclear Reactors: The Next Frontier in Maritime Decarbonization

Nuclear power has a long history of use in naval vessels since the 1950s, and its application in commercial maritime shipping is being revisited due to the urgent need for decarbonization. The U.S. is exploring the potential of marinized nuclear reactors to replace aging fleets and meet the International Maritime Organization’s (IMO) target of a 50% reduction in CO2 emissions by 2050.

Among various types of nuclear energy technologies available, SMRs (small modular reactors) are particularly appealing for maritime applications due to their compact size and enhanced safety features.

SEE MORE: Are SMRs The Future of Nuclear Energy? Oklo Leads the Charge

SMRs are smaller and more flexible than traditional nuclear reactors, making them suitable for installation on ships. SMRs could provide ships with a steady supply of power, enabling them to travel long distances without the need for frequent refueling stops. This could be especially beneficial for large cargo ships and icebreakers operating in remote areas.

MSRs, a type of SMR, offer even greater potential with their ability to operate on various fuel cycles, including thorium, and provide extended refueling intervals.

Countries like the U.S., South Korea, and Denmark are at the forefront of developing these reactors for maritime use. For instance, Denmark’s Seaborg Technologies is working on a compact Gen-IV molten fluoride salt reactor with a 12-year refueling cycle, aiming for deployment on floating power plants.

Why Nuclear Power Could be the Key

One of the most compelling reasons to consider nuclear energy for maritime shipping is its potential to reduce GHG emissions. Nuclear-powered ships do not emit carbon dioxide during operation, unlike conventional ships that burn fossil fuels. More notably, nuclear generates 4x less carbon emission than solar farms.

Additionally, nuclear energy produces minimal waste compared to fossil fuels, and advances in waste management have made it safer and more manageable.

Moreover, nuclear energy offers a high level of energy security and independence for ships. Unlike fossil fuels, which are subject to price fluctuations and geopolitical tensions, nuclear fuel is abundant and can be sourced from multiple countries.

However, while the potential of nuclear-powered ships is significant, there are challenges related to regulatory approval, public perception, and the high initial costs of reactor development. Still, countries like Russia, China, and the U.S. are making strides in overcoming these hurdles.

Russia, for example, already operates nuclear-powered icebreakers and floating power plants, demonstrating the feasibility of nuclear technology in harsh marine environments​.

In the U.S., the adoption of nuclear power in maritime shipping could revitalize the domestic fleet, particularly under the Jones Act. The regulation mandates that goods transported between U.S. ports must be carried on U.S.-built and operated ships.

Could Nuclear Power Revolutionize Shipping?

The development of SMRs and advances in nuclear technology are making it increasingly feasible for commercial vessels to be powered by nuclear energy. However, careful consideration of safety, regulatory, and public perception issues will be crucial as the industry moves forward.

In conclusion, nuclear energy presents a promising opportunity for the maritime shipping industry to reduce its environmental impact and increase energy security. While there are still many challenges to overcome, the potential benefits make it an option worth exploring.

With continued research and development, as well as the establishment of appropriate regulatory frameworks, nuclear-powered commercial shipping could become a reality in the coming decades.

READ MORE: Funding Bill Grants $2.7B to American-Made Nuclear Reactor Fuel

The post Can Nuclear Power Propel Maritime into a Zero-Emission Era? Maersk to Explore Nuclear for Ships appeared first on Carbon Credits.

Copper prices rose on Wednesday due to optimism surrounding potential U.S. interest rate cuts and the impact of a strike at the Escondida mine in Chile, the world’s largest copper mine. 

Factors Driving Copper’s Price Revival

The 3-month copper contract on the London Metal Exchange increased by 0.8% to $9,026 per metric ton. This is a turn-around from the previous month’s price dropping to below the $9,000/ton threshold.

SEE MORE: Copper Prices Slump Below $9,000: What Does It Mean for Global Growth?

This reflects market excitement over the possibility that the U.S. Federal Reserve might shift its focus from controlling inflation to promoting economic growth. Such expectation is fueled by weaker-than-expected U.S. producer price data, which has led investors to anticipate that cooling inflation could prompt rate cuts.

The U.S. dollar index, which fell to a one-week low, also supported copper prices by making the dollar-denominated metal more affordable for buyers using other currencies. 

However, gains in copper were tempered by ongoing concerns about the Chinese economy. Recent data showing that bank lending in China in July was the lowest in nearly 15 years has intensified fears of a prolonged economic downturn. This could negatively affect industrial activity and demand for metals.

Notably, a powerful workers’ union’s strike at BHP’s Escondida mine in Chile has further bolstered copper prices. The strikers aim for a bigger share of the profits from the largest copper mine in the world.

What Fuels the Copper Mine’s Unrest? 

The strike raises the prospect of disrupted production at a mine that produced almost 5% of the world’s copper output. This strike history is marked by significant disruptions, such as the 44-day strike in 2017, which led to a spike in global copper prices after BHP declared “force majeure.” 

The term indicates the company couldn’t fulfill its contracts due to the strike’s impact. Similar disruptions occurred in 2006, 2011, and 2015, with the union’s actions consistently affecting production and prices.

Three key factors enhance the union’s bargaining power: 

It represents 61% of Escondida’s workforce, 
Has substantial financial reserves to support workers during strikes, and 
Is protected by Chilean law, which prevents the company from replacing striking workers. 

These reasons give the union considerable leverage in negotiations. The union, Sindicato Nro. 1, controls nearly all frontline workers at Escondida, including essential machine operators, drivers, and technicians. 

BHP has attempted to restart talks, but the union rejected the latest offer, although it has indicated a willingness to resume discussions. The company has a contingency plan that allows non-unionized workers to continue operations, but the extent to which production is maintained still needs to be clarified.

A key point of contention is the union’s demand for 1% of the mine’s shareholder dividends to be distributed to workers, estimated to be around $35,000 per worker.

BHP has currently offered a bonus of $28,900, but the union is holding out for a better deal.

How Could the Strike Affect Copper Prices?

The strike’s impact on copper prices has been limited so far, mainly due to weak demand from China and hopes for a quick resolution. However, the situation could escalate if the strike continues. 

Since copper price reached record highs in May at LME, it has been dropping as shown below. 

Remarkably, market sentiment shows a bullish forecast for the red metal, with an expected trading range to go beyond $4.10/pound. According to Trading Economics estimates, copper prices could trade at $4.14/pound at the end of the quarter. 

As negotiations between BHP and the union continue, the outcome will significantly impact global copper markets, depending on the strike’s duration and severity. This situation highlights the critical importance of mining in the global copper supply chain. Nearly 90% of the world’s copper comes from mines rather than recycled scrap.

In addition to copper, other base metals also saw gains. LME aluminum price rose by 1.2% to $2,360.50 per ton, zinc climbed by 1.5% to $2,727.50, lead advanced by 0.9% to $2,008, and tin increased by 0.9% to $31,470. However, nickel prices dipped slightly, by 0.1%, to $16,300 per ton.

The ongoing strike and potential shifts in U.S. monetary policy could play pivotal roles in shaping the global copper market’s trajectory in the coming weeks. Investors and stakeholders will be closely watching the developments, particularly as copper remains a critical component to reach the world’s net zero goal.

READ MORE: The World Needs 194 New Large Copper Mines to Reach Net Zero

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