What if China corners the cobalt market?

It is widely known that more than half of the world’s cobalt reserves and production are in one dangerously unstable country, the Democratic Republic of Congo. What is less well known is that four-fifths of the cobalt sulphates and oxides used to make the all-important cathodes for lithium-ion batteries are refined in China. (Much of the other 20% is processed in Finland, but its raw material, too, comes from a mine in Congo, majority-owned by a Chinese firm, China Molybdenum.) 

On March 14th concerns about China’s grip on Congo’s cobalt production deepened when GEM, a Chinese battery maker, said it would acquire a third of the cobalt shipped by Glencore, the world’s biggest producer of the metal, between 2018 and 2020—equivalent to almost half of the world’s 110,000-tonne production in 2017. This is likely to add momentum to a rally that has pushed the price of cobalt up from an average of $26,500 a tonne in 2016 to above $90,000 a tonne. It is not known whether non-Chinese battery, EV or consumer-electronics manufacturers have done similar, unannounced deals with Glencore. 

But Sam Jaffe of Cairn Energy Research Advisors, a consultancy, says it will be a severe blow to some firms. He likens the outcome of the deal to a game of musical chairs in which Chinese battery manufacturers have taken all but one of the seats. “Everybody else is frantically looking for that last empty chair.” Mr Jaffe doubts the cobalt grab is an effort by Chinese firms to corner or manipulate the market for speculative ends. Instead, he says, they are likely to be driven by a “desperate need” to fulfil China’s ambitious plans to step up production of EVs. 

Full Article: LINK

Battery Breakthrough Company Feature: ALD NanoSolutions

There is an ongoing boom in the materials supply chain industry to supply the Electrical Vehicle manufacturers with battery materials. There are a number of concerns in the supply of the actual materials (e.g. Lithium, Cobalt and graphite). The technological aspects are also still broad,  however it seems very likely that ALD will play a role for some of the technologies for producing future lithium batteries that we will use in basically all devices ranging from communication (smart phones) and for transportation (cars, trucks, trains, ships, airplanes). 

Alumina ALD Coating on LiCoO₂ cathode particles showing a clear improvment in battery cyclability. The ALD coated material (red) shows improved capacity retention compared to uncoated (black). (ALD Nano)

ALD Nano in Boulder Colorado is the pioneer in this technology area and has recently announced scaling up their technology to run high volume of powder (3000 kg/day). They have developed a Spatial vibrationg technology refered to as Continious Vibrating Reactor - CVR.

The scientific, process development and engineering teams at ALD Nano have spent considerable resources over the past few years rapidly developing this first-of-its-kind technology from research scale, bench-top to the current commercial-scale systems. A continuous vibrating reactor, or CVR, provides ALD coating capacity of more than three tons per day and 1,200 tons per year of particle materials. These techniques gained from equipment development open up new pathways for ALD Nano's growth. The CVR is a spatial ALD reactor system and can also be utilized for MLD techniques, run at atmospheric or pressurized conditions, and fitted with various features such as plasma. [LINK]

It seems to me that their technology is mature for high volume manufacturing of powder materials and that they "simply" by scaling the number and/or the size of plants can supply the know how and hardware for full scale production for any big player in the battery materials supply chain. 

ALD Nano was recently highlighted by the Colorado Cleantech Industries Association (CCIA) and here is the information given by their CEO, Wayne Simmons:

Battery Breakthrough Company Feature: ALD NanoSolutions

CCIA [LINK] : We asked several companies “What are the critical changes in the battery industry landscape that will have a strategic impact on your success?” This week, we’re highlighting ALD NanoSolutions.

Wayne Simmons, CEO

Lithium ion batteries for electric vehicles, consumer electronics, and distributed energy storage, along with new versions of lead acid batteries for vehicle start-stop fuel efficiency strategies, are driving today’s growth in the battery energy storage market. Longer term, grid-scale batteries will generate a large impact too. Overall, the dramatic changes and expansion of the battery industry are creating huge new materials markets. Every major chemical and advanced materials company in the world is attracted to this opportunity. However, for new devices like EVs to take meaningful market share, the materials for electrodes, electrolytes, and other battery components need to be engineered at the nanometer, or even atomic, scale. It is this demand for engineering new materials that improve energy storage, safety, and power management metrics, combined with the desired cost stack of inputs to the final battery price, that has a big impact on ALD Nano’s business. The key for us to succeed is to enable the new battery materials with atomic layer deposition technologies that not only solve various technical challenges to reach performance metrics, but can also scale at very low cost.

About ALD NanoSolutions  ALD NanoSolutions (ALD Nano) is creating cost-effective advanced materials through its unique portfolio of atomic layer deposition technologies to transform industries.

RNC Minerals surges on $1-billion Nickel-Cobalt mne plans in Quebec Canada

RNC Minerals Surges on $1-billion Nickel-Cobalt Mine Plans. The company is looking to secure financing to build the world's largest nickel-cobalt project next year. Its share price rose nearly 50 percent on Monday.

Source: Investing News LINK

 

 

Extracting a bulk sample at the Dumont nickel-cobalt project near Amos, northern Quebec. (Source: RNC Minerals)

RNC Minerals Plans Initiatives to Allow Decision to Begin Construction of Dumont Nickel-Cobalt Project in 2019; Highlights Large Nickel and Cobalt Reserves

 

"The Dumont Nickel-Cobalt Project, one of the world's premier battery metals projects, contains the world's largest undeveloped reserves of both cobalt and nickel. It also contains the 2^nd largest nickel reserve and the 8^th largest cobalt reserve of any deposit in the world," said Mark Selby, President and CEO of RNC Minerals. "Dumont is the only deposit of this scale that is not currently in operation and not owned by a major mining company (the other eight largest deposits are owned by companies that include Glencore, Vale, Norilsk, Sumitomo Corp, and Jinchuan – see below Tables 1 and 2). Given market concern regarding future cobalt and nickel supply for electric vehicles, and nickel prices at the $12,000-$13,000/t ($5.50-$6/lb) level, RNC believes it is well-positioned to significantly advance Dumont in 2018."

RNC Press release : LINK

 

RNC is a multi-asset precious and base metal mining company with high quality production and development assets in low risk jurisdictions. The company’s principal assets are the producing Beta Hunt gold and nickel mine in Western Australia, a 50% stake in the nickel joint venture that holds the Dumont Nickel Project in the Abitibi region of Quebec, and a 30% stake in the producing Reed Mine in the Flin Flon-Snow Lake region of Manitoba, Canada.

 

RNC Minerals

Car manufactures are aiming at reducing the amount of cobalt in lithium batteries

Here is an interesting article from Bloomberg for those of you who follow Electrical Vehicle material supply chain and lithium battery technology

Hype Meets Reality as Electric Car Dreams Run Into Metal Crunch

By Elisabeth Behrmann, Jack Farchy and Sam Dodge

January 11, 2018

 

When BMW AG revealed it was designing electric versions of its X3 SUV and Mini, the going rate for 21 kilograms of cobalt—the amount of the metal needed to power typical car batteries—was under $600. Only 16 months later, the price tag is approaching $1,700 and climbing by the day. For carmakers vying to fill their fleets with electric vehicles, the spike has been a rude awakening as to how much their success is riding on the scarce silvery-blue mineral found predominantly in one of the world’s most corrupt and underdeveloped countries.

If each of the billion cars on the road were replaced today with a Tesla Model X, 14 million tonnes of cobalt would be needed—twice global reserves. Even a more realistic scenario for people to drive 30 million electric cars by 2030 requires output to be more than trebled, according to a study commissioned by Glencore from commodity analysts CRU Group.

Full article (LINK)

BMW News from Detroit Car Show : BMW aims for half-million electric vehicles by 2019, shows off X2 at Detroit auto show


The Bloomberg article focuses on BMW technology but presumably this game of reducing cobalt is followed by all car manufactures. Especially interesting is the comparison on how much cobalt is in each cathode technology. The article also give a good overview on the supply issues for cobalt.

Amount of cobalt in lithium battery cathode materials and the BMW roadmap moving to materials with lee amount of cobalt. (Screen dump from the Bloomberg article)

 

Nano One ready for cobalt free HVS cathode material for lithium ion batteries

Nobody should have missed the current expected boom for electrical vehicles (EVs). However, the high energy, cobalt containing batteries for these cars can possibly not be supplied at a low cost due to high demand and insufficient supply chain, as well as ethical concern in mining. That is why many researchers around the world are focusing on developing technology that is so called "cobalt free". Just now Nano One, a Canadian company has announced recent success with their cobalt free High Voltage Spinel (HVS) cathode material for lithium ion batteries

HVS has been tested with lithium, graphite and lithium titanium oxide anodes (LTO) and consists of LiNi0.5Mn1.5O4 (LNMO) cathode, which according to preliminary cell data shown below indicates increased power for Cobalt Free, High Voltage Spinel made with the Nano One process.

Initial discharge curves showing improved performance of High Voltage Spinel (LiNi_0.5Mn_1.5O₄) using Nano One’s advanced process. [Nano One press release LINK]

Please find details in the press release below or visit www.nanoone.ca for more.

Nano One Successfully Completes High Voltage Spinel Project Vancouver, B.C., January 11, 2018: Dr. Stephen Campbell, Principal Scientist at Nano One, today announced that Nano One has successfully completed an 18 month project developing cobalt free High Voltage Spinel (HVS) cathode material for lithium ion batteries, with the support of the National Research Council of Canada Industrial Research Assistance Program (NRC IRAP). HVS is suited to fast charging and high power applications and is a candidate cathode material in next generation solid state lithium ion batteries for automotive, consumer electronics and energy storage applications.

Democratic Republic of Congo may double tax on Cobalt by making it “Strategic”

The world’s top cobalt-producing country could more than double an export tax on the metal as demand and prices continue to climb.

A proposed revision to the Democratic Republic of Congo’s (DRC) mining code could classify cobalt as a “strategic substance,” resulting in a tax hike, according to Mines Minister Martin Kabwelulu.

Under the country’s current mining code, cobalt is classified as a base metal, alongside copper. If the proposed revision goes through, the royalty on base metals will climb 1.5 percent, rising from 2 percent to 3.5 percent.

Source : Investing News LINK

Cobalt (Co) is a metal used in numerous diverse commercial, industrial, and military applications, many of which are strategic and critical.  On a global basis, the leading use of cobalt is in rechargeable battery electrodes.  Superalloys, which are used to make parts for gas turbine engines, are another major use for cobalt.  Cobalt is also used to make airbags in automobiles; catalysts for the petroleum and chemical industries; cemented carbides (also called hardmetals) and diamond tools; corrosion- and wear-resistant alloys; drying agents for paints, varnishes, and inks; dyes and pigments; ground coats for porcelain enamels; high-speed steels; magnetic recording media; magnets; and steel-belted radial tires. (USGS Cobalt Yearbook 2017)

Lithium and Cobalt Markets are Expected to Grow

According to a report published by Grand View Research, Inc. the global lithium-ion battery market is expected to reach USD 93.1 billion by 2025, growing at a CAGR of 17.0%, according to a new report by Grand View Research, Inc. Increased usage of lithium-ion batteries in electric vehicles, portable consumer electronics and grid storage systems owing to its high energy density and high safety level is expected to drive market demand.

Lithium-ion batteries are used in applications that require lightweight and high-energy density solutions. These batteries provide the highest energy density per weight and are mostly used in cellular phones, notebook computers, and hybrid automobiles.

Canadian miners prepares to cash in on Cobalt demand for electrical vehicles (EVs)

Lithium cobalt oxide (LCO, LiCoO₂) and other cobalt containing mixed metal oxides (containing e.g. Mn and or Ni) are widely used in lithium ion batteries. These materials are composed of cobalt oxide layers in which the lithium is intercalated. During discharge, the lithium is released as lithium ions, hence the name lithium ion batteries (LIB). Besides the mobile device industry (phones, laptop tablets etc.) the electrical vehicle industry is creating an increase in the demand for cobalt, increasing the need to find additional sources in stable areas of the world. 

According to USGS latest report, Congo (Kinshasa) continued to be the world’s leading source of mined cobalt, supplying more than one-half of world cobalt mine production. (LINK). Besides mining 30% of the cobalt comes from recycling. Due to political, legal and labor issues (child labor) in Congo, Canadian miners prepares to cash in on Cobalt demand for electrical vehicles (EVs).

WSJ Reports:  TORONTO—A handful of Canadian miners are ramping up operations to mine cobalt, betting on demand for a socially responsible source of the metal that is in high demand as a key component of electric cars.

Most cobalt currently comes from the Democratic Republic of Congo, where supply is threatened by political, legal and labor issues. That means car makers and battery suppliers are increasingly looking elsewhere for the mineral. 

Full story: LINK

Some beautiful cobalt cotaining minerals from Ontario Canada - Top Skutterudite and below Nickeline (Cobalt, Ontario, Canada, Wikipedia)

LiCo Energy Metals completed on the Teledyne Cobalt Property in Ontario Canada

January 3rd, 2017 – Vancouver, British Columbia; – LiCo Energy Metals Inc. (“the Company” or “LiCo”) TSX-V: LIC, OTCQB: WCTXF is pleased to report assay results for drill holes TE17-02 and TE17-03 completed on the Teledyne Cobalt Property, located 6 km northeast of Cobalt, Ontario.

A summary of the most significant results of the recent drill core assays are:

• TE17-02 0.95% Co over 1.9 m from 143.0 to 144.9 m, incl. 2.58% Co over 0.60 m from 144.30 to 144.90 m
• TE17-02 0.59% Co over 3.9 m from 156.0 to 159.9 m, incl. 2.22% Co over 0.60 m from 156.6 to 157.2 m

On the Teledyne Cobalt Property, the Company completed a total of 11 diamond drill holes totaling 2,200 m in the fall of 2017. The drilling has confirmed the cobalt mineralization on the Property which is consistent with historical grades and widths reported historically.

 As reported on the Company’s November 30th, 2017 news release, LiCo has recently completed its 2017 diamond drilling program on its Teledyne and Glencore Bucke Properties completing a total of 32 diamond drill holes, drilling 4,100 m of core. This exploration work satisfies both its flow-through financing obligations and the contractual obligations outlined in the recently acquired Glencore Bucke Property from Glencore plc of Baar Switzerland (LSE: GLEN). The overall drilling program has confirmed and extended the cobalt mineralization on each property and these results are consistent with historical grades and widths in the overall Cobalt Camp. As reported previously, visual cobalt camp style mineralization has been noted in every drill hole that the Company has logged.

Full press release : LINK

LiCo Energy Metals Inc. is a Canadian based exploration company whose primary listing is on the TSX Venture Exchange. The Company's focus is directed towards exploration for high value metals integral to the manufacture of lithium ion batteries.

Ontario Teledyne Cobalt Project:

The Company has an option to earn 100% ownership, subject to a royalty, in the Teledyne Project located near Cobalt. Ontario. The Property adjoins the south and west boundaries of claims that hosted the Agaunico Mine.  From 1905 through to 1961, the Agaunico Mine produced a total of 4,350,000 lbs. of cobalt and 980,000 oz. of silver (Cunningham-Dunlop, 1979). A significant portion of the cobalt that was produced at the Agaunico Mine located along structures that extended southward onto property currently under option to LiCo Energy Metals.

Aveni extends copper interconnects to 5nm and below for BEOL integration employing ALD TaN & CVD Co barrier/seed

Recently at IEDM 2017 IBM announced that copper is here to stay and can continue to be scaled for the future back end of line (BEOL) interconnects - 20 Years of Cu BEOL in Manufacturing, and its Future Prospects (Invited), D. Edelstein, IBM TJ Watson Research Center (LINK)

Before the actual copper plating process, the advanced dual-damascene structures for interconnects employ two very important conformal deposition processes :

• an atomic layer deposition tantalum nitride (ALD TaN) copper diffusion barrier
• a thin chemical vapor deposition cobalt (CVD Co) liner

More detailed information on Cobalt CVD for barrier/seed and selective encapsulation of copper from the leader Applied Materials can be found here (LINK).

According to a press release below (LINK), Aveni has announced it has obtained results that support the continued use of copper in the BEOL for advanced interconnects, at and beyond the 5nm technology node. Aveni is a French developer and manufacturer of wet deposition technologies and chemistries for 2D interconnects and 3D through silicon via packaging. The company was originally founded in 2001 as a spinoff from the Commissariat à l’énergie atomique et aux énergies alternatives (CEA) to develop and market groundbreaking nanometric deposition technologies for a variety of electronic applications.  

MASSY, France – Dec. 12, 2017 – aveni S.A., developer and manufacturer of market-disrupting wet deposition technologies and chemistries for 2D interconnects and 3D through silicon via packaging, today announced it has obtained results that strongly support the continued use of copper in the back end of line (BEOL) for advanced interconnects, at and beyond the 5nm technology node.