The Australian Aluminium Council (AAC) has called on the federal government of Australia to formally recognise bauxite, alumina, and aluminium as critical minerals for the nation’s green energy future.
The AAC’s incoming president, Mike Ferraro, has called for bauxite (aluminium ore), alumina, and aluminium to be added to the local list.
“Aluminium is, and will continue to be, one of the most widely used commodities in the global clean energy transition. To capitalise on the nation’s abundance of these commodities and to position Australia as a supplier of choice, they need to be recognised as critical minerals,” Ferraro said.
The council recently provided a submission on Australia’s National Battery Strategy Issues paper. In its submission, the council agreed that Australia could be a renewable energy superpower and that the ability to store energy at multiple scales will become increasingly important as the world moves towards net zero emissions.
While there is a considerable focus on lithium-ion batteries, the council notes that Australia will need to have access to diverse types of batteries as demand for batteries for a variety of uses grows, including those using aluminium and its derivatives.
Capitalizing on Australia’s existing strengths
According to the council, aluminium is one most widely used commodities in the global transition to a clean energy future, including applications in the battery sector. It is also recognised for its importance in both economic development and low emissions transition. Aluminium use is highly correlated with GDP, so as countries urbanize, per capita use of aluminium increases.
It is expected that by 2050, global demand for aluminium is expected to nearly double, from around 100Mtpa to around 190Mtpa. While an increasing proportion will be met through recycled aluminium, there will still be a need for added production of primary aluminium, requiring a comparable increase in global bauxite mining and alumina refining rates.
The council also pointed out that Australia is one of very few countries which has bauxite mining, alumina refining, aluminium smelting, and aluminium extrusion industries. This makes aluminium one of the few commodities in which the raw materials are mined, processed, and then developed into consumer products in Australia.
“Globally, there is a focus across (the) industry to find solutions for the technology challenges required to decarbonise. There is an opportunity for Australia to lead the world in development and implementation of these technologies, capitalising on Australia’s national advantages, providing jobs and value to the economy,” said AAC CEO Marghanita Johnson in a recent interview with Alcircle.com.
Australia currently has a very narrow definition of critical minerals which does not include resources already produced at scale including bauxite, alumina, aluminium, and other major commodities. Other countries like Canada, the US, and Europe, identify bauxite and aluminium as critical.
Furthermore, aluminium is recognised by the World Bank and the International Energy Agency as one of the commodities required for both clean energy technologies and the construction of the electricity networks.
Ferraro said, “Australia should be aligned with its peers on critical minerals in order to ensure it is optimally placed to capture the increasing demand for minerals, like bauxite, alumina and aluminium…it is an opportunity the nation cannot afford to miss.”
Australia’s Aluminium history
The aluminium industry has been operating in Australia since 1955, and over the decades has been a significant contributor to the nation’s economy in many areas.
It includes six mines which collectively produce over 100Mtpa, making Australia the world’s largest producer of bauxite. Australia also happens to be the world’s largest exporter of alumina, with six alumina refineries across the island country producing nearly 20Mtpa.
Australia is also the seventh largest producer of aluminium, with four aluminium smelters and additional downstream processing industries, including more than 20 extrusion presses.
Aluminium is Australia’s highest earning manufacturing export. The industry directly employs more than 17,000 people, including 4,000 full-time equivalent contractors. It also indirectly supports around 60,000 families predominantly in regional Australia.
Interestingly, high-purity alumina (HPA) was added to the Australian critical minerals list in 2022. HPA, as the name implies, is a highly pure form of aluminium oxide (Al2O3). It is usually manufactured through the hydrolysis of aluminium oxide, hydrochloric acid leaching, underwater spark discharge with aluminium, and vapour-phase oxidation processes.
This bright and non-metallurgical alumina product is non-corrosive and is valued for its superior properties and characteristics. This premium product can be classified by three levels: 4N, 5N, and 6N, depending upon the level of purity.
This high-value, high margin product finds extensive applications in manufacturing artificial sapphire substrates, light-emitting diodes (LED), semiconductor wafers, ceramics, phosphors, synthetic gemstones, smartphone components, and glass for wristwatches, optical windows, and televisions.
It is important to note that there is no substitute material for HPA in the manufacture of synthetic sapphire.
HPA is a highly demanded product which is increasingly consumed in the manufacture of large format lithium-ion batteries (LIBs), where it is attracting growing use as a coating on the separator sheets.
Growing market
The global HPA market is forecast to grow by US$3.5B during 2023-2027 according to market research reports, with the market being driven by the rising adoption of LED lighting, increasing demand for semiconductors, and growing consumption of lithium-ion batteries.
HPA itself is a white crystalline powder form of aluminium oxide (Al2O3) characterised by its purity levels (i.e., 99.99% Al2O3). HPA is chemically stable, has a high melting point, high hardness, good thermal conductivity, and high electrical insulation.
HPA is used in the automotive and aerospace sector and is an important component of lithium-ion batteries and high-performance electronics and optics.
Just one of two new additions to the country’s critical minerals list in 2022, HPA has already garnered significant government financial support with the nation looking to maintain its leading position in the specialist metals space.
According to the Australian government, HPA was added to the list after consultation with the minerals industry and science agencies over 18 months.
Like the majority of metals added to the Australian critical minerals list in recent years, HPA has been identified as having significant potential to assist in the switch to renewable energy and support booming electric vehicle (EV) development.
