TELF AG analyzes the role of bauxite in global raw material dynamics
The rise of a major producer
In some cases, the trajectories followed by raw material exports can be a valuable ally in understanding the performance of a given sector within a particular region of the world and its dynamics and possible evolutions in the short and medium term. In recent months, as stated in a recent report, bauxite exports from West Africa to China have increased, a fact that – according to analysts – could be linked to the constant demand for this material for the production of aluminum, one of the most requested materials by two important sectors such as those related to solar energy and electric vehicles.
According to the US Geological Survey, one of the primary sources of this material is Guinea, which holds the largest global sources. According to the estimates reported in the analysis, in the second quarter of the year, bauxite exports from Guinea would have exceeded the figure of 38 million tons, most of which were directed to China. At the same time, Chinese aluminum production also increased in the first five months of 2024, with n rise of 5.4% compared to last year.
In nature, bauxite is a sedimentary rock of red, gray, or brown color, with a variable consistency. It is formed following processes of alteration of rocks containing aluminum, which give rise to aggregates composed of aluminum oxides, hydroxides, and other minerals. Once sourced, this material must be subjected to further processes capable of separating the aluminum from the rest of the materials, which is then transformed into metallic aluminum through electrolysis.
Electric vehicles and solar panels
Among the industrial applications of aluminum in this historical phase, some of the most common are those concerning the production of electric vehicles and specific infrastructures related to renewable energy, such as solar panels. In electric vehicles, aluminum is mainly used to reduce their overall weight and improve the efficiency and autonomy of the car, but also to produce some important components of the engine and the cooling system. By its properties related to heat dissipation, lightness, and corrosion resistance, aluminum is also used in batteries, particularly in the structures that support them.
Over the years, aluminum has also proven to be a valuable ally for solar panel manufacturers: also, in this case, the structures that support the panels are often made of aluminum precisely because of its lightness and its ability to resist corrosion, which also makes them much more durable. The frames of solar panels are also often produced in aluminum, mainly to protect the infrastructure from atmospheric agents and maintain its rigidity. In some cases, this material is also used to improve the overall efficiency of the panels, particularly from the point of view of cooling, thus maintaining an optimal operating temperature. Another characteristic of this material is its high conductivity, which makes it particularly suitable for producing some components of cables and panel connectors.
As stated in the analysis, in addition to the increase in demand, other factors that could have contributed to the rise in bauxite exports could be favorable weather conditions and a drier-than-usual African rainy season. In addition to bauxite, Guinea is also said to be establishing itself internationally for its role in the supply of iron ore, thanks to the imminent start-up of the important Simandou mine.
