Raw Materials

European Economic and Social Committee

5 February 2020, Brussels

Daniel CIOS

DG GROW

Unit C2 – Energy Intensive Industries and Raw Materials»

DG GROW Directorate-General for Internal

EU policy for battery raw materials

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Source: UNEP, World Bank database

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GD

P T

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US

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Ma

teri

al

Ex

tra

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n (

Bil

lio

n t

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ne

s)Biomass Fossil Fuels Metal ores Non-metallic minerals GDP

a) Historical data b) Projections

Why raw materials matter?

Circular economy

ICT

Mobility Batteries

Space

Low carbon tech.

Defence

Impact on all value chains and economy

Transition to a low carbon and circular economy

Increase of raw materials demand

Increase of export restrictions

1

2

3

4

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The EU 2050 carbon-neutral strategy

Competitive

&

carbon neutral

industries

in 2050

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„Access to resources is also a strategic security question for

Europe’s ambition to deliver the Green Deal. Ensuring the supply of

sustainable raw materials, in particular of critical raw materials necessary

for clean technologies, digital, space and defence applications, by

diversifying supply from both primary and secondary sources, is therefore

one of the pre-requisites to make this transition happen.”

The European Green Deal

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Raw Materials Initiative

Launched in 2008, consolidated in 2011

Non-energy, non-agricultural raw materials

Connecting EU external and internal policies

Integrated strategy (3 pillars)

Introduced a list of Critical Raw Materials (CRM) in 2011

Policy strongly supported by EIP on Raw Materials

Foster sustainablesupply from Europeansources

Boost resourceefficiency and

recycling

Ensure levelplaying field in

access to resources in

third countries

EU raw materials policy

Aim to secure sustainable supplies of raw materials

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The Battery Action PlanOverall objective:

1. Secure access to raw materials from resource-rich countries outside the EU,

2. Facilitate access to European sources of raw materials,

3. Accessing secondary raw materials through recycling in a circular economy of batteries.

Map the current and future primary raw materials availability for batteries

Assess the potential within the EU for sourcing battery raw materials - Cobalt, Natural Graphite, Nickel, Lithium

Assess the potential in the whole EU for sourcing of secondary raw materials

Recommendations for optimalising the sourcing of batteries raw materials within the EU

1.

2.

3.

4.

Support research and innovation aimed at cost-effective production, substitution and more efficient use of critical raw materials for batteries

5.

Launch a dialogue with Member States, to determine the fitness of their raw materials policies, mining codes and incentives for exploration

6.

Key actions:

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Survey on battery raw materials in Member States

Commercial

projects

(E1;F1; G1,2,3)1

Potentially

commercial

projects

(E2;F2;G1,2,3)1

Non-Commercial

projects

(E3;F2;G1,2,3)1

Exploration projects

(E3;F3;G4)1

Cobalt -- 3

SE(3)

10

ES(1), FI(5), SE(4)

25

AT(2), CY(3), CZ(1),

ES(7), FI(1), IE(1),

NO(1), PL(1), SE(5),

SK(2), UK(1)

Lithium 3

FI(1),PT(2)

7

AT (1), CZ(1), DE(1),

ES(1), FI(1), PT(2)

3

AT(1), ES(1), UK(1)

16 (40)2

CZ(1), DE(2), ES(2),

FI(1), FR(2), GR(1),

IE(3), NO(1)

SE(3), PT(40)2

Natural

graphite

1

SE (1)

2

SE(1), SK (1)

2

SE(2)

28

CZ(3), DE(1), FI(10),

ES(4), SE(2)

NO(8)

Nickel -- 3

SE(3)

6

FI(3),SE(1), UK(2)

21

AT(2), CY(3), DE(1),

ES(5), FI (4), LV(1),

SK(2), SE(3)Note 1 – UNFC, Definition of categories (see United Nations Framework Classification (ECE ENERGY SERIES No. 42):

E axis: E1, extraction and sale has been confirmed to be economically viable; E2, expected to become economically viable; E3, not expected to become economically viable or

evaluation is at too early a stage.

F axis: F1, feasibility of extraction by a development project or mining operation has been confirmed; F2, feasibility is subject to further evaluation; F3, feasibility cannot be evaluated

due to limited technical data.

G axis: G1, quantities associated with a known deposit that can be estimated with a high level of confidence (G1), moderate level of confidence (G2), a low level of confidence (G3)

Note 2 – 40 applications for lithium exploration have been submitted; 12 blocks have been defined for lithium exploration in the Centre and North of Portugal. Public tenders are going

to be launched in 2018.

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Mining production

Figure 1 – Mining production in Europe: cobalt, lithium, natural graphite, nickel; metallic content, tonnes (2016) (Source: Survey on battery raw materials RMSG, 2018)

7.7%

0.9% 1.1%

13.8 %

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Cobalt Lithium NaturalGraphite

Nickel

World

Europe

Cobalt: 9,698 t (7.7%)Lithium: 322 t (0.9%)Natural graphite: 12,650 t (1.1%)Nickel: 270,126 t (13.8%)

Figure 2 – World share of European production (2016) (Source: Survey Member States- RMSG, 2018)

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Refining productionCobaltNatural graphiteLithiumNickel

60,000 t30,000 t10,000 t5,000 t

NO

Figure 3 – Refining production in Europe (2016) (Source: Survey Member States- RMSG, 2018)

European potential

• No information provided on production from primary raw materials

• No information provided on production on secondary raw materials

• Little data on production at site level

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Lithium projects in Europe

EuropeanMetals

Czech Republic

Infinity Lithium

Spain

Bacanora

Germany

Savannah Resources

Portugal

Keliber

Finland

EuropeanLithium

Austria

Lithium Australia

Germany

CornishLithium

UK

International Lithium

Ireland

22,500 t/a 15,000 t/a N.A. N.A.11,000 t/a 10,000 t/a N.A. N.A. N.A.

DFS PFS FS FSDFS DFS N.A. N.A. FS

60 t/a ~ Chile annual production

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Key drivers of responsible and sustainable sourcing and mining

Market uptake / consumersResponsible investors and financial

institutions

Responsible sourcing

Responsible mining

ICT

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EU Critical Raw Materials List

Economic importance

-Importance of a raw material per economic sector & importance of the sector in the EU economy (value added)-Substitution (technical and cost performance)

Supply risk

•-Global supply and EU sourcing (ores+refined materials)

•-Market concentration (HHI)

•-Governance performance (WGI)

•-Import reliance

•-Trade agreements and restrictions

•-End-of-Life Recycling Input Rate•-Substitution (production, criticality, co/by-production)

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Natural cork, Natural Rubber, Natural Teak wood, Sapele wood, Coking coal,

Hydrogen and Helium

Analysed Raw Materials Aggregates, Baryte, Bentonite, Borates, Diatomite, Feldspar, Fluorspar, Gypsum,

Kaolin clay, Limestone, Magnesite, Natural graphite, Perlite, Phosphate rock,

Phosphorus, Potash, Silica sand, Sulphur, Talc

Industrial and

construction minerals

Chromium, Cobalt, Manganese, Molybdenum, Nickel, Niobium, Tantalum,Titanium, Tungsten, Vanadium

Iron and ferro-alloy metals

Gold, Silver and Platinum Group Metals (Iridium, Palladium, Platinum, Rhodium,

Ruthenium)Precious metals

Cerium, Dysprosium, Erbium, Europium, Gadolinium, Holmium, Lanthanum,

Lutetium, Neodymium, Praseodymium, Samarium, Terbium, Thulium, Ytterbium,

Yttrium + Scandium

Rare earths

Aluminium, Antimony, Arsenic, Beryllium, Bismuth, Cadmium, Copper, Gallium,Germanium, Gold, Hafnium, Indium, Lead, Lithium, Magnesium, Rhenium, Selenium,Silicon metal, Silver, Strontium, Tellurium, Tin, Zinc, Zirconium

Other non-ferrous

metals

Bio and other materials

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2017 & 2020 CRM assessments

EU CRM

list 2017

(27)

Antimony Germanium Niobium

Baryte Hafnium PGMs

Beryllium HeliumPhosphate

Rock

Bismuth HREEs Phosphorus

Borate Indium Scandium

Cobalt LREEsSilicon

Metal

Coking

CoalMagnesium Tantalum

FluorsparNatural

GraphiteTungsten

GalliumNatural

RubberVanadium

EU CRM assessment 2020

Same methodology as in 2017

83 raw materials screened

Main products expected in 2020 are:

EU list of CRMs

Report on 2020 List of CRMs for the EU

Report on CRMs for strategic

technologies and sectors

RM factsheets/profiles

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• The Green Deal acknowledges the role of raw materials in clean-carbon technologies

• The Commission is performing activities to securing the supply of raw materials in Europe

from third countries, domestic sources and through recycling and substitution/

• Raw materials for batteries need to be produced in a sustainable and environmentally friendly

way in order to fully contribute to the Paris Climate Change Agreement and the Green Deal

Summary

Thank you