The mining of minerals and metals for electric vehicles (EVs) and their batteries occurs in many locations, with different countries specializing in the extraction of different resources based on their geology and economic factors. According to Peter Hjorth, chief executive officer of Bluelake Mineral, the main minerals and metals of interest for EV batteries include lithium, cobalt, nickel, and manganese.
“The mining of minerals and metals for electric vehicles (EVs) and their batteries occur in many locations, with different countries specializing in the extraction of different resources based on their geology and economic factors,” Hjorth said.
Cobalt
Over 60 percent of the world’s cobalt production comes from the Democratic Republic of the Congo (DRC). The DRC has the largest proven reserves of cobalt, and the mineral is typically extracted as a byproduct of copper mining in the region.
“The mining industry in the DRC has been plagued by concerns over child labor, environmental degradation, and other human rights abuses,” Hjorth said. “This has led to pressure from consumers and advocacy groups to establish more ethical sourcing practices.”
While the DRC is the primary source of mined cobalt, China dominates the refining and processing industry. China imports a significant amount of cobalt ore and then processes it into usable forms for battery manufacturing.
Nickel
According to Hjorth, major nickel producers include Indonesia, the Philippines, Russia, and Australia. Indonesia, in particular, has ramped up its nickel production in recent years.
“Nickel mining, especially in Indonesia, has raised environmental concerns, particularly regarding deforestation and the impact on aquatic ecosystems due to the disposal of tailings,” Hjorth said. “China is a significant consumer of nickel, especially for battery production. The country imports a lot of nickel ore for processing and consumption.”
Lithium
Australia is the world’s largest producer of lithium, followed by Chile. Lithium is mined from hard rock (spodumene) in Australia, while in Chile, it’s primarily extracted from brine pools.
“Both hard rock mining and brine extraction have environmental impacts. Brine extraction, for example, can consume vast amounts of water, a concern in the arid regions of Chile where these reserves are located,” Hjorth said. China, once again, plays a significant role in the refining and processing of lithium. While Australia might mine the raw ore, a large portion of it is shipped to China for conversion into battery-grade lithium compounds.
Manganese
The largest producers of manganese are South Africa, China and Australia. While China is a major producer, it’s also the world’s largest consumer of manganese, primarily for steel production but also for battery manufacturing.
Hjorth pointed out that while the U.S. does have reserves of some of these minerals, the scale of mining operations, environmental regulations, economic considerations, and historical development of the industry have meant that much of the raw material supply chain for EV batteries is located outside the U.S. However, there’s growing interest in securing a domestic supply chain for these minerals in the U.S., both for economic reasons and to reduce dependency on foreign sources.
Alex Wylie is president and chief executive officer of Volt Lithium Corp., a lithium development technology and ESG focused company. Wylie said that when looking at EV batteries, the majority of minerals are used for their anode and cathode electrode parts.
“The key anode electrode mineral is graphite. In fact, the anode is made primarily of it,” Wylie said. “Most of the graphite production and associated reserves are based out of China. China represents 65 percent of graphite production and reserves worldwide.”
To Wylie’s knowledge, the U.S. does not have meaningful reserves of graphite. Canada has significant graphite reserves; however, environmental permitting has significantly delayed the development of any mines.
“The U.S. and Canada are working together to ultimately accelerate the development of graphite mines in North America, with both countries placing it on their respective critical minerals lists,” Wylie said.
Challenges & Effects on Metal Recyclers
The fact that a significant portion of minerals and metals essential for EVs are mined outside the U.S., especially in countries like China, presents various challenges for the automotive industry and EV manufacturing:
“Relying on foreign sources for essential materials exposes manufacturers to potential supply disruptions,” Hjorth said. “Geopolitical tensions, trade wars, or export restrictions can jeopardize access to these vital materials. An example is China’s dominance in the rare earths market, where potential export restrictions could significantly impact industries reliant on these materials.”
In addition, price volatility is a concern. As Hjorth explained, limited sources and high demand can lead to price fluctuations. If a particular country dominates the supply of a crucial mineral and decides to adjust its production levels or change its export policies, it can significantly influence global prices.
“Also, sourcing materials from various global locations might lead to inconsistencies in material quality. Manufacturers must ensure rigorous quality control measures across their supply chain, which might be more challenging with foreign suppliers due to varying standards or regulations,” Hjorth said.
One of the biggest challenges in the U.S. for lithium mines is the time to develop the mine for hard rock production. According to Wylie, it can take up to 17 years to permit a mine in the U.S.
“To have a viable EV industry in the U.S., car manufacturers need a reliable and stable domestic supply of critical minerals,” Wylie said. “The U.S. and Canada produce the majority of critical minerals needed for the EV industry except for lithium. This creates a weakness for the entire supply chain for EVs, given that mineral’s key role in EV battery production. The looming shortfall in lithium now creates a more pressing need to bring additional North American sources online.”
Ongoing Impact on Metal Recyclers
All major market regions have realized the urgency to develop strategies for sourcing and recycling of critical raw materials for the EV, battery, military, and other strategic sectors of development. As Hjorth explained, this includes the U.S. and Europe which both have realized that it is not sustainable to be dependent on countries like China for sourcing of critical raw materials.
“We know that there are sufficient reserves to meet the global demand for battery materials, although some of the bottlenecks include the long lead time for building new mines and processing facilities and the large investments required, especially to mine and process responsibly,” said Cecilia Mattea, batteries and supply chain policy manager at Transport & Environment (T&E). “We know that there are sufficient reserves to meet the global demand for battery materials although some of the bottlenecks include the long lead time for building new mines and processing facilities and the large investments required.”
Technology also will be a key factor in ensuring most critical minerals are recycled from EVs economically. Wylie pointed out that a significant investment in recycling technologies will ensure that the majority of critical minerals are recycled from EVs.
“The innovation needed to achieve this will require significant collaboration between the public and private sectors, academia, research and development, and the capital markets,” Wylie said.
Over the medium term, metal recycling will become a significant supplier of critical minerals for the EV industry. “However, in the short term, EV growth will unfortunately and significantly outpace the ability of the recycling industry to supply critical minerals. The U.S. needs a secure domestic supply of critical minerals to supply the materials to sustain the growth of the EV industry,” Wylie said. “Over the long term, there will not be enough critical minerals to supply the overall EV industry. Recycling will be a critical factor to ensure the ongoing growth of the EV industry over the long term.”