In late 2020, the European Union (EU) made battery metal miners and developers sit up and take notice when it declared that it was about to toughen up on “clean” electric vehicle (EV) legislation.
As part of its Circular Economy Action Plan and putting plans in place to contribute to zero pollution ambitions set in the European Green Deal, the European Commission told the industry it was going to require that:
- EV batteries must have a “carbon footprint declaration” from 1 July 2024
- EV batteries will have to bear a “carbon intensity performance class label” from 2026
- EV batteries must comply with “maximum carbon footprint thresholds” from 2027
That led to a move by European car manufacturers to begin to seek to source battery minerals with the highest sustainability credentials.
An update of the bloc’s rules will see a crackdown on the use of hazardous materials and propose recycling targets for materials used in batteries to help create a “sustainable batteries value chain”.
These rules will apply to all batteries manufactured in the 27-country bloc and imported from abroad.
“This is the gold standard worldwide for safe, clean batteries,” said European Commission vice-president Maros Sefcovic, in unveiling the proposal.
Global demand for batteries is set to increase 14-fold by 2030 and the EU is forecast to potentially account for 17% of that demand. The EU has funnelled billions of euros through the European Battery Alliance, an initiative to boost nascent suppliers stretching from mining and refining raw materials such as lithium, the metal used in mobile phones and electric vehicles, to manufacturing, installing recharging infrastructure and recycling batteries. With the 1 July 2024, date looming, a race is now on among miners and battery manufacturers to “clean up their act”.
Survey identifies growing ‘clean energy’ focus
A recent survey by White & Case has found that, against a backdrop of record commodity prices and the pressure for miners to boost their ESG credentials, the sector is seeking to position itself as a trusted partner in fighting climate change.
White & Case found that the industry has become increasingly adept at making the argument that it is becoming a far cleaner – and more sustainable sector, and with this improved ESG performance – it can be a reliable and trusted partner to mine the materials that will enable the green transition.
“The opportunity for the sector is clear. End-users, especially those pushing energy transition agendas, such as the EV makers, want to be able to tell consumers that the materials they use come with impeccable ESG credentials. That’s created the opportunity for the mining sector to position itself as a trusted partner in fighting climate change,” the survey suggested.
White & Case highlighted the 2021 nickel supply agreement between BHP and Tesla, with the two companies saying they would work together to make the supply chain cleaner. The importance of achieving the EU targets is being taken seriously by mining companies across the world.
New U.S. and EC collaboration
In mid-March 2022, the US Department of Energy (DOE) and the European Commission confirmed their support for a collaboration between the European Battery Alliance and the U.S. Li-Bridge alliance to support climate change mitigation and to accelerate development of robust supply chains for lithium-ion and next-generation batteries, including the critical raw materials segments.
The US Li-Bridge alliance and the European Battery Alliance are collectively assuring the resilience of battery supply chains by:
- Developing sustainable industry capacity that can satisfy a growing demand for batteries in transportation and energy systems
- Researching next-generation, high-performing, and sustainable battery technologies
- Ensuring sustainable and ethical sourcing of critical raw materials
- Accelerating battery recycling and reuse, including recovering critical raw materials
- Investing in the battery workforce
- Prioritizing environmental justice when supporting the broader transition to a clean energy economy
Meanwhile, several companies have made achieving EU approval a major focus of their operations.
EcoGraf
Western Australia’s EcoGraf (ASX: EGR) has identified the European market as a prime target for its vertically integrated “HFfree” battery anode material business which is aimed at supporting the global transition to clean energy and e-mobility. Over US$30M has been invested to date to create two highly attractive, development-ready graphite businesses.
The first new state-of-the-art EcoGraf processing facility in Western Australia will manufacture spherical graphite products for export to Europe, North America, and Asia, using a superior, environmentally responsible HF-free purification technology to provide customers with sustainably produced high-performance battery anode material. Subsequently, the battery graphite production base will be expanded to include additional processing facilities in Europe and North America to support the global transition to clean, renewable energy in the coming decade and the rapid growth in battery materials.
In addition, the company’s breakthrough recovery of carbon anode material from recycled batteries using its proprietary process will enable the recycling industry to reduce battery waste and use recycled carbon anode material to improve battery lifecycle efficiency.
To complement these battery graphite operations, the company is also developing the TanzGraphite natural flake graphite business, with development of the Epanko Graphite Project in Tanzania, which will supply additional feedstock for the battery anode material facilities and provide customers with mine-to-market ESG supply chain assurance.
Talga
Battery and advanced materials company Talga Group Ltd (ASX: TLG) recently announced the maiden production of its flagship Li-ion battery anode during commissioning of its EVA qualification plant in Luleå, Sweden. The EVA facility is understood to be Europe’s first Li-ion battery anode plant.
The company said the maiden production of Talnode-C, as part of kiln commissioning, represents a significant step for Talga and the emerging green European battery industry. According to Talga, Talnode-C has the lowest CO2-eq profile in the world for coated anode. Following the completion of plant commissioning, Talnode-C was shipped to battery cell makers to undergo next stage commercial testing. Talga has received engagements from 23 battery manufacturers and major automotive OEMs for Talnode-C produced at the EVA plant.
In late 2021, Talga revealed it was implementing the EU’s Principles for Sustainable Raw Materials as part of its Vittangi natural graphite mining and anode production project.
“As Europe adopts electric vehicles, demand for graphite for battery anodes is expected to increase by 383% to 2050 according to the World Bank Group. This means it is vitally important for the EV battery supply chain to be as clean as possible and that anode materials are produced in the right way,” said managing director, Mark Thompson.
“Our high-quality graphite deposits in northern Sweden and use of 100% renewable power ensures our battery materials have an ultra-low CO2 footprint.
“We are committed to developing our project in a way that lives up to the high environmental and societal goals that the EU has set and enable cleaner energy storage for everyone.”
Evolution
Evolution Energy Minerals (ASX: EV1) recently agreed to undertake a commercial verification programme to evaluate the amenability of graphite from its Chilalo graphite project in Tanzania to producing coated battery anode materials utilizing thermal purification and proprietary coating technologies.
Managing director, Phil Hoskins, said the growing demand for battery anode materials is obvious but ensuring that those materials are sourced in a sustainable, ethical, and transparent way is a non-negotiable for battery manufacturers and financiers.”
“Sustainable graphite supply is fundamental to our strategy, with aspirations of becoming the world’s first net-zero-carbon graphite mine. We intend to embed that same sustainability ethos in our battery anode materials strategy, thereby becoming the supplier of choice to battery manufacturers of the future.”
