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Based on Benchmark Minerals estimates, 600GWh would require approximately 300kt of lithium hydroxide, 84kt of cobalt and 400kt of spherical graphite. 9 At a briefing to the Association of Mining and Exploration Companies (AMEC) members on 6 th March 2018, McKinsey and Co forecast that lithium hydroxide requirements for 2025 could be over 550kt. A 2017 meta-analysis of global lithium forecasts determined low- and high- range forecasts for lithium hydroxide requirements in 2025 to be 553kt and 2,076kt respectively. A consumer demand analysis conducted at the same time indicated that the 2025 demand for lithium may even be as high as 3,570kt, including power tools (161ktpa), electronics (68ktpa), distributed energy storage (DER) (1.1Mtpa) and electric vehicles (EV) (1.7Mtpa). 10 In 2018 the world produced around 250ktpa of lithium so there is little doubt that the world is entering a new economic transformation. This growth will also impact the other battery metals. There is a growing trend towards centralisation of material processing and materials that has led to a number of responses internationally. Unlike Australia, Chile is the world’s second largest supplier of lithium and has been conscious to avoid the total export of potential downstream value-adding of its lithium resources. Chile has created a series of integrated policies specifically to encourage the creation of domestic value-adding industries (Figure 8 ). To this end, Chile has been focusing on a domestic lithium reserve, similar to WA’s gas reserve, that will only be made available to domestic value adding industries. This domestically reserved lithium is also discounted to export prices as a further incentive for local production. 9 Benchmark Mineral Intelligence (2016), “Tesla faces raw material reality with expanded gigafactory”, http://benchmarkminerals.com/ tesla-faces-raw-material-reality-with-expanded- gigafactory/ . (Accessed: 01 May 2018) 10 Future Smart Strategies internal analysis (2018).
“Batteries are at the heart of the ongoing industrial revolution. They represent a key enabling technology in the context of the Energy Union. Their development and production play a strategic role in the ongoing transition to clean mobility and clean energy systems. Batteries embody our ambition, as set out in President Junker’s State of the Union, to help our industries remain or become world leaders in innovation, digitisation and decarbonisation. “As was recalled by the actors in our meeting, we are at a critical juncture. The lack of a domestic, European cell manufacturing base jeopardises the position of EU industrial customers because of the security of the supply chain, increased costs due to transportation, time delays, weaker quality control or limitations on the design.”
Vice-President or Energy Union, Maros Sefcovic, October 11, 2017
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