Weekly Metals News Digest – Sep 23-27
**TerraVolta Resources Secures $225 Million for Lithium Project**
The US Department of Energy has awarded a $225 million grant to TerraVolta Resources for its Liberty Owl project, which aims to extract lithium from formation water in hydrocarbon fields located in Texas and Arkansas. The project, with an estimated capital investment of over $1 billion, is set to boost the domestic supply of lithium, a critical material for battery production.
Liberty Owl plans to build a plant capable of extracting up to 25,000 tons of lithium carbonate per year from produced water, a volume sufficient to power 500,000 electric vehicles annually. The construction of the lithium plant is expected to begin in 2028, with production starting in 2029. This funding aligns with the US government's push to stimulate domestic production of advanced batteries and the materials required for them.
Rio Tinto to Expand Scandium Production
Rio Tinto has announced plans to significantly increase its production of scandium in response to growing global demand. The company currently produces three tons of scandium annually at its Sorel-Tracy plant in Canada but aims to boost output to 12 tons per year. Scandium production at Sorel-Tracy uses waste from titanium dioxide production.
In 2023, Rio Tinto acquired the Platina Scandium project from Platina Resources, which is expected to produce up to 40 tons of scandium annually. A feasibility study for the new facility is underway. Scandium is primarily used in aluminum alloy production for the aerospace industry, as well as in fuel cells, LEDs, and lasers.
Platinum Metals Market Sees Major Shifts Amid EV and Hybrid Growth
The global market for platinum and other platinum group metals is undergoing significant changes due to the evolving automotive industry. In the first half of 2024, global electric vehicle sales slowed to 11% growth, compared to a 77% increase during the same period in 2023. However, hybrid electric vehicle sales surged by 44%, with a 70% increase in China. This shift is attributed to consumer preference for hybrids due to their extended range compared to fully electric vehicles.
As automakers such as Toyota, Ford, and Volvo adjust their focus toward hybrids, which require 10-15% more platinum group metals than conventional gasoline-powered cars, demand for platinum and palladium is expected to rise. Consulting firm Alix Partners forecasts that hybrids will account for over 12% of the global vehicle market by 2030, up from previous estimates of 5%. This trend could drive up prices for these metals, with every million additional hybrid cars increasing demand by 150,000 troy ounces.
Battery Recycling Plant to Be Built in Indiana
US companies ReElement Technologies and American Metals, in collaboration with India’s Lohum Cleantech, have agreed to build a lithium-ion battery recycling plant in Indiana. The facility will have a capacity of 15.5 GWh and will serve over 315,000 electric vehicles annually. The plant will fully recycle spent lithium-ion batteries, extracting base metals for the production of new batteries.
The project supports the US government's strategy to reduce reliance on critical material supplies from China and enhance the technological independence of the domestic industry. This initiative is part of a broader government policy that includes supporting lithium recovery projects, such as TerraVolta Resources' Liberty Owl.
Novelis to Restart Swiss Plant After Flood Damage
Novelis, the world’s largest producer of aluminum semi-finished products, has completed the rebuilding of its Sierre plant in Switzerland. The facility was severely damaged by floods in June, which halted production and disrupted aluminum supplies to major European automakers such as Mercedes-Benz, Porsche, BMW, Audi, and Jaguar Land Rover.
The Sierre plant specializes in hot- and cold-rolled aluminum products for the automotive industry. Production is expected to resume by the end of October, ensuring the continued supply of aluminum to key automakers in the European Union.
US Aims to Reduce Reliance on Chinese Lithium Dominance
The US Department of Energy's recent funding efforts to boost domestic lithium projects, such as TerraVolta Resources' Liberty Owl and other battery recycling initiatives, reflect the country's strategy to reduce dependence on Chinese lithium supply chains. According to the US Geological Survey, lithium imports into the US reached 3.4 million tons in 2023, up from 2.6 million tons in 2019. China’s dominance in the lithium-ion battery market is significant, with companies like CATL holding a 35% global market share.
In response, the US government has raised tariffs on Chinese lithium-ion batteries and is actively promoting the development of domestic lithium resources. In addition to direct funding, the US is participating in the Minerals Security Partnership, which aims to finance key mining projects for high-tech industries, including lithium. These efforts are expected to drive significant growth in US lithium production, with lithium-ion battery capacity projected to increase from 109.7 GWh in 2023 to 813.6 GWh by 2030.
