Miners are developing A $1 1 billion ($ 728 million) Nolans project AustraliaThe Northern Territory covers 10% of the world’s demand for the types of rare earths used in permanent magnets for electric motors. Importantly, we plan to process the ore near the site so that Alafra can directly monitor the treatment of toxic waste in a project purchased in 2001.
“We contract directly with European manufacturers to supply materials,” Chief Financial Officer Peter Sherington said in an interview, trading by the end of the year as negotiations are moving towards quantity and price. He added that he plans to start. The new rules on sustainability and traceability “opened the minds of automakers to this need.”
In Sydney trading, stock prices have skyrocketed by 17%, the most since January.
Rare earths have emerged as another concern in the conversion to electric vehicles.They need a huge amount battery Raw materials such as lithium, nickel and cobalt BMW AG, Volkswagen With AG Tesla A corporation that goes directly to miners. According to BloombergNEF, China controls two-thirds of mining and 85% of rare earth refining, and it is expected that much of its production will be used domestically in the future.
The boiling tension that previously created the element-also important for defense applications-political pawns are spurring efforts to procure from outside China. Last year, the Pentagon promised Australian producer Lynas Corp. to fund a processing plant in Texas that would initially cost an estimated $ 30 million. Another company that is working on the project is Hastings Technology Metals Ltd. And Peak Resources Ltd. It is included.
BMW and General Motors Co., Ltd... We have sought to reduce the amount of rare earths-vehicles use an average of 3 kilograms (6.6 lbs) -switching to alternatives tends to reduce motor efficiency. Tesla initially used induction motors that didn’t require magnets to power electric vehicles, Model 3..
“To ensure the safety of future supplies, we need to create our own,” said Hangzhou Permanent Magnet Group Ltd. of China, which developed a magnet that can switch between two types of rare earths according to the price. President Joanne Jia said. “The material is important, but the amount is very small.”
New German legislation on supply chain responsibilities is also of interest, said Alafra’s Sherington. Beginning in 2023, companies will be accountable or fined for social standards throughout their network of suppliers, including waste.
Efforts are underway to establish supply in Europe, which is currently the top EV region and aims to be the largest consumer of the element.Last year, the European Union established the European Raw Materials Alliance to ensure a sufficient supply of important raw materials to spur plans for the world’s most ambitious battle. Climate change.. In rare earths, the alliance is € 1.7 billion ($)2 a billion).
Bernd Schaefer, CEO of ERMA, said: “It’s now changing to the tremendous cost of not having the material.”
Automakers are hedging China’s rare earth domination
Source link Automakers are hedging China’s rare earth domination