New lithium-ion batteries that use less or none of the key materials must be developed to ensure the supply chain isn’t depleted, the United Nations Conference on Trade And Development (UNCTAD) has reported.
In its report on strategic raw materials the UN trade body raised concerns about the future supply of battery materials, in particular cobalt, lithium and natural graphite.
The report suggested more research should be conducted in the fields of battery technology that depend on critical raw materials such as replacing graphite with silicon as an anode material.
The report is titled ‘Commodities at a Glance: special issue on strategic battery raw materials’.
UNCTAD recommends dynamic monitoring of the raw materials resource chain from mining to manufacturing to detect supply risks and develop mitigation strategies.
The trade body noted that recycling of raw materials from spent lithium-ion batteries could make an important contribution to transforming host countries into circular economies to alleviate security of supply concerns.
The report stated: “Policymakers can have a direct influence on the options highlighted to mitigate risks to supplies by facilitating research into new battery chemistries that rely less on critical raw materials, adopting recycling policies and providing a conducive environment to attract investment to establish new mines or expand existing ones.”
The suggestions follow concerns that raw material production is concentrated in a few countries, and there is low substitutability of battery chemistries by EV manufacturers.
For example, more than 60% of global cobalt production is in the Democratic Republic of the Congo (DRC), with about 20% supplied from artisanal mines where up to 40,000 children work in ‘extremely’ dangerous conditions.
Likewise, 75% of lithium production is mined in Australia and Chile, which would lead to tighter markets, price hikes and increased lithium-ion battery costs if disrupted, noted the report.
In Chile, lithium mining uses nearly 65% of the water in the country’s Salar de Atamaca region to pump out brines from drilled wells— which has forced quinoa farmers and llama herders to migrate.
UNCTAD predicts around 23 million EVs will be sold over the next decade with the rechargeable car battery market rising from $7 billion to $58 billion by 2024.
