European Union countries could meet domestic demand for necessary minerals such as lithium for the industry of electric batteries for automobiles and other products to progress, activating nearly twenty mining plants and thus definitively cutting off external dependence.
In the midst of a trade war between China and Europe over the import of electric vehicles and customs tariffs with the Asian giant, a study by Transport & Environment (T&E) puts the figures on the table for create internal production of lithium, nickel, manganese and cobalt.
Environmental impact
The main problem to be solved would be to know with certainty what environmental impact the activation of mining projects would have on European territory. What is clear is that Environmental monitoring of farms would be more important By complying with European environmental standards, more secure traceability of all processes and a measurement of their environmental impact would be achieved.
Another consequence would be to locate battery production in Europe, generating jobs, eliminate the carbon footprint caused by the export of used batteries and the importation of new products and the strengthening of the independence of the continent’s automobile sector.
60% of local demand
T&E ensures that the European Union could meet up to 60% of its local lithium demand for local production of products, including batteries for electric vehicles in 2030 if the construction of the 19 additional plants planned to process lithium, nickel, manganese and cobalt is approved.
The entity emphasizes about nickel that, although the potential of this raw material is less than a thirdIn Finland, a globally innovative process is being implemented that does not use fossil fuels.
In the analysis of the four metals needed for batteries, 19 mining projects were planned, 12 of which focus solely on lithium in Europe.
Mining and recycling
If all these goals were achieved, T&E estimates that by 2030 it could be meet 60% of EU lithium demand needed for electric vehicles and energy storage and up to 80% for all metals analyzed.
As for the recyclinglithium, nickel, cobalt and manganese recovered could cover up to 40% of demand in 2030 if all batteries are collected and production waste is included, a figure that would increase to more than two-thirds in 2040, depending on the metal.
Emerging projects
However, while there is considerable potential, many projects are in the early stages of development and no final investment decision has been made nor any permits obtained Therefore, the numbers are projections of what might end up happening.
The organisation assures that the portfolio of projects currently has considerable potential, since the European Union is able to meet most of the needs. your local lithium mining and processing needsas well as significant amounts of nickel and manganese. At the same time, up to one-fifth of all battery materials could come from recycling by 2030.
The Battery Dilemma
T&E points out that the EU is far behind China in the battery race, where LFP (lithium iron phosphate) cells They now sell for just $55 per kWh.while EU NMC (nickel, manganese and cobalt) cells sell for twice as much.
“Europe does not impose significant tariffs on cells, its companies are going through manufacturing hell and many of them risk not surviving the coming onslaught,” the organization says.
Ultra-cheap batteries
Like solar cells, Chinese batteries could end up becoming an ultra cheap basic product accessible to all who wish it.
This technology can help powering affordable electric cars and promote battery storage to support the growth of renewable energies.
cheap batteries will reduce our dependence on oil and gas imported, they will create jobs in the service sector and reduce emissions, just as Chinese solar power has done.
At the same time, a tsunami of cheap Chinese batteries would mark the end of the much-hyped (and subsidized) battery factories of the old continent.
The BMW case
“BMW pulls out of €2 billion deal with Northvolt offers a glimpse of what the future could hold: hundreds of thousands of jobs in the battery supply chain are at stake,” notes T&E.
The entity stresses that as a solution to be given “the highest priority is to introduce the long-awaited European rules on the carbon footprint of batteries and to restrict the sales of batteries manufactured with dirty energy. “Batteries manufactured in the EU are at least 37% cleaner than Chinese batteries.”
Batteries manufactured in Europe could emit 60% less carbon than the Chineseaccording to a new analysis by Transport & Environment (T&E), which advocates the relocation of the electric vehicle supply chain to the continent.
This decision, according to (T&E) “would reduce emissions from battery production by 37% compared to a supply chain controlled by China.
This measure ensures that Chinese companies will eventually adapt to the ecological standards imposed by the EUand the immediate launch of the European Battery Fund (3,000 million euros) is requested.
Investigating China
Third, T&E proposes to the EU the launch research on cells made in China. “Such research will likely conclude that the Chinese battery industry benefits from generous support,” the organization says.
“As with automobiles, tariffs would apply. A more progressive alternative would be to increase the current ultra-low tariffs on all battery cell imports, including subsidized U.S. batteries. Our policy must encourage Chinese companies to produce in Europe through joint ventures or licensing agreements,” concludes T&E.
