Metallurgy / Chemicals / Rubber & Plastics

According to the observation report of Huacheng import and export data, it was reported that on October 25, France, Inger Porcelain Group recently announced a good news in Paris: it plans to mine lithium in the kaolin mine that the Group has been mining for a century in Alei Province, which will become the largest lithium mine in Europe in 2027.

For those who are worried about the supply of rare metals in Europe, this is big news, because the EU will ban the sale of gasoline powered vehicles from 2035. The newspaper reported that the pursuit of rare ores should be as important as that of oil. As the automotive industry prepares to turn to an all electric era in 2035, Europe must mobilize to catch up.

According to the report, lithium, cobalt, nickel and manganese, the metals necessary for battery manufacturing, are not produced locally in Europe, and the processing technology is mainly controlled by Chinese enterprises. According to the observation report of Huacheng's import and export data, the new plan of Inger Porcelain Group is expected to change this situation: first, the ore will be mined underground without fear of air pollution, and then lithium hydroxide will be processed in a nearby place, which can be directly used by large battery factories; Secondly, the public authorities have done it in an orderly manner. In France, after a gold mining project in Guyana was abandoned, the mining law was reformed. Last year, a series of orders were issued to regulate public consultation and long-term management after the closure of mines. In Brussels, a draft regulation on key substances is in the making. After Rio Tinto Mining Group stopped its exploration work in Serbia due to public opposition, Yingge Porcelain Group is the second most important lithium mining project in more than ten European lithium mining projects.

According to the report, a French boss said excitedly in private recently: "We are facing the risk of extreme dependence. Europe has not considered anything. We collectively lack a clear consciousness, and it is almost impossible to catch up with the gap in this regard." Fortunately, things have finally changed. Competition for key materials has begun. Stelantis Group has obtained some lithium supplies from the United States, and recently obtained nickel and cobalt supplies from Australia. Renault and Valeo have jointly designed, developed and produced a new generation of motors that do not require rare earths in France. The awakening of Europe came slowly, but it was beneficial, Huacheng Import and Export Data Observation reported.

In addition, it was reported on the Spanish daily news website on September 27 that lithium battery is a key component of all current electronic products, electric vehicles and future renewable energy, but it needs substitutes. Import and export data show that by 2050, 2 billion electric vehicles will be needed to replace existing fuel vehicles, and by 2025, the world will face lithium shortage.

Lithium is the perfect raw material for making batteries. It is the lightest metal, so it can store more energy in a smaller space. Unfortunately, lithium is also relatively scarce.

According to the World Economic Forum, by 2050, 2 billion electric vehicles will be needed to replace the existing gasoline powered vehicles to mitigate carbon dioxide emissions in the atmosphere. However, the key problem is that lithium resources are running out.

According to the International Energy Agency, the world may face a shortage of lithium by 2025. Credit Suisse Group pointed out that between 2020 and 2025, its demand may increase three times to the past, which means that the supply will eventually be exhausted. Huacheng Import and Export Data Observation reported.