TELF AG digs deeper into mining industry recent trends
The role of strategic minerals in a delicate situation
The publication of the IEA’s annual report on strategic minerals always represents an excellent opportunity to closely observe the performance of the mining raw materials sector, with a good chance of also understanding the trajectories towards which it will head in the next few months. In addition to reiterating the evident increases in global demand for some of these minerals, which could even triple by 2030, the report also proved helpful in understanding the weight of industrial applications in the increase in demand, helping observers to have a complete and exhaustive overview of the performance of this particular sector. According to the report, growth in global demand for critical minerals will be driven by electric vehicles and energy storage, which is carving out an increasingly important role in the world’s energy development. Low-emission energy production could also play a similar role in increasing demand, along with the growing need for electrification and electricity grid installation in several nations.
The IEA study also highlights a little-known aspect, but which could prove to be of considerable importance for the immediate and future fate of the global mining sector. We are referring to China’s dependence on imports of some specific raw materials and Beijing’s consequent desire to diversify its supplies through massive investments in foreign projects. China, for example, is closely linked to the Democratic Republic of Congo for its cobalt imports, and it is also for this reason, it has begun to cast its gaze beyond the Great Wall. In recent years, Beijing has invested in mining projects in Latin America and Africa, particularly refining facilities, to guarantee more accessible access to raw materials. According to the report, China invested $4.3 billion in foreign lithium-focused projects between 2018 and 2021, double the investment levels of Canada, Australia and the United States in the same time frame.
The race for new explorations
An evident trend also emerges from the report: the desire to focus heavily on new explorations of deposits potentially rich in strategic raw materials. From this point of view, the most active nations are Canada and Australia. However, Brazil and some African countries have also had the opportunity to stand out for their exploratory vivacity. This new global wave of exploration concerns lithium, the most sought-after raw material in this specific historical phase, but also nickel, whose exploration rates have grown by 45% in the latest survey.
According to the IEA, 2023 would have been a very positive year regarding venture capital investments dedicated to strategic minerals. The main beneficiaries of these investments are battery recycling, lithium extraction, and refining technologies. On the other hand, the most active start-ups in the lithium battery recycling sector are the Canadian and Chinese ones. Even in Europe there has been a certain excitement on the part of start-ups, particularly those that are managing to raise funds for the processing of rare earth elements and the reuse of batteries.
