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Correction: Decarbonisation to boost metals demand

  • : Metals
  • 20/04/30

Amends paragraph 4 to clarify that Europe has largely phased out the use of rare earth magnets in onshore wind farms but they are still used in offshore and can be recycled, and that electrification of the transport sector is the strongest demand driver for rare earths in Europe and globally.

Moves towards low-carbon economies are expected to "drastically" increase demand for metals used in renewable energy technologies. But supply chain vulnerabilities could jeopardise these plans, according to the European Commission.

The EU's legally binding 2030 climate change targets and global commitments to limit greenhouse gas emissions are likely to result in the rapid deployment of wind and solar photovoltaic (PV) technologies, so consumption of raw materials necessary to manufacture wind turbines and solar panels should rise sharply in the coming years, according to the commission's report.

The commission considered three factors — the likely lifetime of new renewable plants, sub-technology market share and materials intensity — to establish low, medium and high-demand projections.

Rare earths demand for onshore wind to soar

For wind turbines, demand is expected to rise for structural materials such as concrete, steel, plastic, glass, aluminium, chromium, copper, iron, manganese, molybdenum, nickel and zinc. Consumption of technology-specific materials such as rare-earth elements and minor metals will also grow.

According to the commission's report, the EU onshore wind sector will see the biggest increase in demand, especially for rare earths dysprosium, neodymium, praseodymium and terbium, which are used in permanent magnet-based turbines. However, some market participants question the commission's projections, noting that Europe has largely phased out the use of rare earth magnets in onshore wind farms but that they are still used in offshore and can be recycled. Electrification of the transport sector is the strongest demand driver for rare earths in Europe and globally.

In the commission's high-demand scenario, EU consumption of these rare earths could increase sixfold between 2018 and 2030 and 15-fold by 2050. Based on the EU's 2050 decarbonisation targets, Europe alone would require most of the neodymium, praseodymium, dysprosium and terbium currently available globally, if all the extra wind turbines envisaged were to be built.

For the rest of the world, the high-demand scenario envisages consumption of rare earths for wind turbines rising by a factor of 8-9 between 2018 and 2030, and by a factor of 11-14 between 2018 and 2050.

Demand within the EU from the offshore wind sector is expected to rise less sharply, but the opposite will be true for the rest of the world — largely because globally the sector lags behind Europe.

Efficiency to cap demand from solar

In the EU's solar sector, structural material consumption doubles under the low-demand scenario and rises by a factor of 21 in the high-demand scenario. In the report's most severe projection, EU demand rises eight-fold by 2030 and 30-fold by 2050.

But for technology-specific materials, consumption falls in the low-demand scenario because of efficiency gains and the resulting drop in material intensity.

And the medium-demand scenario, a balance between capacity deployment and material intensities results in consumption of gallium, germanium, indium and selenium rising most sharply, but consumption of silver falling because of enhanced material efficiencies.

In the high-demand scenario, cadmium, gallium, indium, selenium and tellurium consumption grows by up to 40 times by 2050. The strongest demand in 2050 is expected to be for germanium — up to 86 times higher than in 2018.

EU demand for silicon is expected to double by 2030 and to quadruple by 2050 under the medium scenario, and increase seven-fold by 2030 and 13-fold by 2050 under the high-demand scenario.

Supply-chain stress

Limits on raw material availability could threaten decarbonisation efforts.

The report calls for government efforts to ensure stable and secure supplies, noting that Europe is largely dependent on imports for many raw materials. "The EU's transition to green energy technologies... could be endangered by weaknesses in future supply security for several materials, such as germanium, tellurium, gallium, indium, selenium, silicon and glass for solar PV, and rare earth elements for wind turbine technologies."

No rare earths are mined in the EU, so the bloc depends on the world's leading producer, China, to supply these critical materials. The Covid-19 pandemic and China's resulting border restrictions have led to a heightened awareness of weaknesses in supply chains.

The report also call for replacement for materials currently used to manufacture wind turbines, arguing that this would allow supply diversification.

And the report highlights the fact that the main global producers and suppliers of certain critical materials are concentrated in countries with a poor level of governance — something that increases risks related to supply security and environmental and social problems.


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25/02/19

EU draft plan seeks to cut energy costs

EU draft plan seeks to cut energy costs

Brussels, 19 February (Argus) — The European Commission has set out plans to tackle the cost of energy in the EU, warning in a draft document that Europe risks de-industrialisation because of a growing energy price gap compared to global competitors. High energy prices are undermining "the EU's global standing and international competitiveness", the commission said, in a draft action plan for affordable energy, seen by Argus . The plan is expected to be released next week, alongside a clean industrial deal and other strategy documents. Much of the strategy relies on non-binding recommendations rather than legislation, particularly in energy taxation. Officials cite EU reliance on imported fossil fuels as a main driver of price volatility. And they also highlight network costs and taxation as key factors. For taxation, the commission pledges — non-binding — recommendations that will advise EU states on how to "effectively" lower electricity taxation levels all the way down to "zero" for energy-intensive industries and households. Electricity should be "less taxed" than other energy sources on the bloc's road to decarbonisation, the commission said. It wants to strip non-energy cost components from energy bills. Officials also eye revival of the long-stalled effort to revise the EU's 2003 energy taxation directive. That requires unanimous approval from member states. The commission pledges, for this year, an energy union task force that pushes for a "genuine" energy union with a fully integrated EU energy market. Additional initiatives include an electrification action plan, a roadmap for digitalisation, and a heating and cooling strategy. A white paper will look at deeper electricity market integration in early next year. EU officials promise "guidance" to national governments on removing barriers to consumers switching suppliers and changing contracts, on energy efficiency, and on consumers and communities producing and selling renewable energy. More legislative action will come to decouple retail electricity bills from gas prices and ease restrictions on long-term energy contracts for heavy industries. By 2026, the commission promises guidance on combining power purchase agreements (PPAs) with contracts for difference (CfDs). And officials will push for new rules on forward markets and hedging. There are also plans for a tariff methodology for network charges that could become legally binding. Familiar proposals include fast-tracking energy infrastructure permits, boosting system flexibility via storage and demand response. Legislative overhaul of the EU's energy security framework in 2026 aims to better prepare Europe for supply disruptions, cutting price volatility and levels. Specific figures on expected savings from cutting fossil fuel imports are not given in the draft seen by Argus . But the strategy outlines the expected savings from replacing fossil fuel demand in electricity generation with "clean energy" at 50pc. Improving electrification and energy efficiency will save 30pc and enhancing energy system flexibility will save 20pc, according to the draft. The commission is also exploring long-term supply deals and investments in LNG export terminals to curb prices. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

S Australia puts Whyalla steelworks into administration


25/02/19
25/02/19

S Australia puts Whyalla steelworks into administration

Sydney, 19 February (Argus) — The Labor state government of South Australia (SA) has pushed new laws through parliament forcing the 1.2mn t/yr Whyalla steelworks, owned by UK-based GFG Alliance, into administration. SA appointed KordaMentha as an administrator of OneSteel — which is part of the GFG group and operates the steelworks and associated 9mn t/yr iron ore mines in SA's upper Spencer Gulf region — on 19 February, citing a lack of confidence in GFG's ability to fund ongoing operations. GFG acquired OneSteel in its takeover of Australian steel producer Arrium in 2017, a process also overseen by KordaMentha. The city of Whyalla is reliant on the steelworks as its primary employer and the failure of GFG to pay creditors and service growing debts associated with the plant has led to a political crisis in SA. The appointment of an administrator occurred after changes to the Whyalla Steel Works Act 1958 were rushed through state parliament on the morning of 19 February, the government said. The changes apply GFG's debts as a charge across all of OneSteel's real property, and thus readily enforceable. SA premier Peter Malinauskas revealed this month that the state government is owed tens of millions of dollars in unpaid iron ore mining royalties, while state-owned utility SA Water is owed about A$15mn ($9.5mn). By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Australian fertilizer, copper, zinc rail line to reopen


25/02/19
25/02/19

Australian fertilizer, copper, zinc rail line to reopen

Sydney, 19 February (Argus) — The Mount Isa rail line — which connects multiple Queensland phosphate and copper mines to the Port of Townsville — will reopen today, after floods damaged the track earlier this month. The track is expected to open on 19 February, the line's operator Queensland Rail (QR) confirmed to Argus. But QR did not specify the reopening time. The company announced the line closure on 10 February, after nearly two weeks of heavy rains. QR identified 1.6km of track damage along the Mount Isa rail by 14 February. The rail operator's staff were unable to access parts of the track at the time, as water covered 2km of the line. Fertilizer suppliers Incitec Pivot and Centrix use the lines for DAP/MAP and phosphate rock shipments respectively from their Phosphate Hill and Ardmore projects. Metals producer Glencore also moves copper and zinc from its Mount Isa mining complex to Townsville via the track. Centrix is planning to ship approximately 10,000t of phosphate concentrate out of the Port of Townsville in mid-March. The company also moved 25,000t of concentrate out of the port on 18 February, supported by its phosphate stockpile in Townsville. Queensland's recent floods also disrupted loadings at many of the state's coal ports, including the Ports of Abbot Point, Hay Point, and Dalrymple Bay, in early February. Coal loadings across Australia's east coast dipped to 5.42mn deadweight tonnes (dwt) over the week to 8 February, down by 27pc from 7.42mn dwt a week earlier, because of the weather issues. Argus ' MAP/DAP fob Townsville price was last assessed at $620-640/t on 13 February. By Avinash Govind Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

BYD plans give solid-state batteries clearer timeline


25/02/18
25/02/18

BYD plans give solid-state batteries clearer timeline

Beijing, 18 February (Argus) — The rollout of electric vehicle (EV) solid-state batteries has been given a clearer timeline after China's largest EV producer BYD unveiled plans to launch massive production of such vehicles around 2030. "We will start demonstration in 2027 and achieve large-scale production around 2030," Sun Huajun, chief technology officer at BYD Lithium Battery, said at the second China All-Solid-State Battery Innovation and Development Summit Forum on 16 February. The firm has started feasibility studies into the industrialisation of solid-state batteries, covering key material technology, cell system development and production line construction, Sun added. BYD rolled out a 60 ampere hour all-solid-state battery last year. Its new energy vehicle (NEV) sales surged by 41pc to more than 4.27mn units in 2024, accounting for 27pc of global sales. It is also a major battery manufacturer, with almost 154GWh installed last year, accounting for 17pc of global EV battery installations, industry data show. This timeline is later than earlier predictions by some domestic automakers and research institutions, as most of them said last year that they will deploy full solid-state batteries at their own EV brands from 2025 and start mass production in 2026 or 2027. Solid-state batteries with a longer EV driving range, smaller size and safer performance are considered the main development direction for the next generation of power batteries, but there are several challenges restricting mass production, particularly significantly higher costs. More than 100GWh of solid-state battery capacity is being planned in China, according to industry estimates, but it remains uncertain when they will be turned into real production, and some of the capacity is for solid-liquid hybrid batteries. "To realise the industrialisation of solid-state batteries, we still need to solve the problems with the technology, process and cost," Miao Wei, former minister at China's ministry of industry and information technology said at the same forum. "Looking at the current progress of global research and development, the technology to support massive production is yet to mature. There will be small-scale production around 2027." Several EV and battery producers have unveiled development plans or announced production launches for solid-state batteries in the past few years, but many are semi-solid-state batteries that have lower EV driving ranges, according to market participants. "Semi-solid-state batteries still belong to the category of liquid batteries. We should not get the two mixed up," Miao added. But the development of such batteries is expected to boost the adoption of EVs in the longer term, because anxiety over driving ranges is one of the main reasons why many potential buyers have not opted to buy an EV, especially in China. Some full-solid-state batteries being developed can support a driving range of more than 1,000km. China last year unveiled a plan to devote 6bn yuan ($829mn) to accelerate development of such batteries. Chinese consumers bought fewer NEVs than gasoline vehicles in January for a second straight month, while gasoline demand picked up thanks to the lunar new year holiday, when people typically drive long distances to hometowns. NEV refers to battery electric vehicles (BEVs), plug-in hybrids and fuel cell vehicles in the country. Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Anglo to sell Brazilian nickel business to MMG


25/02/18
25/02/18

Anglo to sell Brazilian nickel business to MMG

Singapore, 18 February (Argus) — UK-South African mining firm Anglo American has agreed to sell its nickel assets in Brazil to Chinese firm MMG for up to $500mn as it looks to focus on copper, iron ore and crop nutrients. The sale to the Chinese company's MMG Singapore Resources arm is expected to close by September. Anglo will receive an upfront cash payment of $350mn when the deal is completed, up to $100mn in a price-linked earnout and a contingent cash payment of $50mn for the development projects, it said today. The Brazilian nickel assets covered by the deal include the Barro Alto and Codemin ferronickel operations and the Jacaré and Morro Sem Boné greenfield projects. Anglo produced 39,400t in nickel metal equivalent in 2024, down by 1.5pc on the year. It expects to produce 37,000-39,000t in 2025. Brazilian multi-metals mining group Vale is also reviewing options for its nickel mining assets, including a potential sale, as it aims to optimise its mining portfolio and increase the competitiveness of its vertically integrated nickel business. China imported 40,048t of ferronickel from Brazil in 2024, down by 36.3pc from a year earlier as Indonesian nickel pig iron (NPI) gained ground in the stainless steel sector. MMG is a subsidiary of Chinese diversified metals company Minmetals. Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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