“The DRC-Africa Battery Metals Forum transcends the boundaries of sectoral interests, converging government bodies, mining corporations, key stakeholders, technology providers and end-users in a collaborative endeavour to shape the trajectory of a nascent industry within the DRC). – His Excellency, the Minister of Industry, HE. Julien Paluku
Battery production for EVs and renewable energy storage, relies on several key minerals and metals. The percentages of each metal’s usage can vary depending on the specific type of battery technology, but here are the most used minerals and metals and their approximate usage percentages in lithium-ion batteries, which dominate the market:
Lithium (Li): Usage: 5-7%
Lithium is the core component of lithium-ion batteries, providing high energy density.
Cobalt (Co): Usage: 10-20%
Cobalt stabilizes the battery and improves its life cycle and energy density. However, due to supply chain and ethical concerns, there is a push to reduce cobalt content.
Nickel (Ni): Usage: 30-80%
Nickel increases energy density and storage capacity. Batteries with higher nickel content (like NMC811) are becoming more common to reduce cobalt reliance.
Manganese (Mn): Usage: 10-20%
Manganese is used in lithium manganese oxide (LMO) and lithium nickel manganese cobalt oxide (NMC) batteries for stability and low cost.
Graphite (C): Usage: 10-15%
Graphite is used as the anode material in nearly all commercial lithium-ion batteries due to its excellent electrical conductivity and stability.
Aluminum (Al): Usage: 5-10%
Aluminum is often used in battery casings and as a current collector in the cathode.
Copper (Cu): Usage: 5-10%
Copper is used in battery current collectors (anode) and in wiring.
Breakdown by battery metals minerals type
NMC (Nickel Manganese Cobalt): One of the most common types of lithium-ion batteries, used in EVs and portable electronics.
Nickel: 33-80% (depending on specific type, e.g., NMC111, NMC622, NMC811)
Manganese: 10-20%
Cobalt: 10-20%
NCA (Nickel Cobalt Aluminum): Another popular lithium-ion battery type, used by companies like Tesla.
Nickel: 80%
Cobalt: 15%
Aluminum: 5%
LFP (Lithium Iron Phosphate): Known for safety and longevity, often used in stationary storage and some EVs.
Lithium: 5-7%
Iron: 30-40%
Phosphate: 20-30%
Graphite: 10-15%
Due to ethical and supply chain concerns, there is a strong industry trend towards reducing cobalt content. High-nickel cathode materials (like NMC811) are becoming more popular. To boost energy density and reduce reliance on cobalt, nickel content in batteries is increasing. Research into alternative chemistries, such as solid-state batteries, lithium-sulfur, and lithium-air, could change the demand for these minerals in the future. These percentages are approximate and can vary based on technological advancements, specific battery designs, and market demands.
The DRC is a country rich in natural resources, particularly minerals and metals critical to produce batteries, such as cobalt, copper, and lithium. These materials are essential for the burgeoning EV market and the broader renewable energy sector. Understanding the historical context and current dynamics of the DRC’s mining industry provides insight into the global supply chain of battery materials and anticipates future trends and challenges.
Following its independence in 1960, the DRC faced political instability and civil unrest, which significantly impacted its mining sector. Nationalization efforts in the 1970s, particularly under President Mobutu Sese Seko, led to the creation of state-owned enterprises such as Gécamines. However, mismanagement, corruption, and lack of investment caused a decline in production and profitability. The DRC’s potential as a global supplier of critical minerals remained largely untapped during this period.
The turn of the century marked a new era for the DRC’s mining industry. Global demand for cobalt, driven by the rise of portable electronics and later by electric vehicles, reignited interest in the country’s mineral wealth. International mining companies entered the scene, bringing capital and expertise. This resurgence was facilitated by relative political stability and reforms aimed at attracting foreign investment. The DRC soon became the world’s leading producer of cobalt, accounting for over 60% of global supply.
Cobalt is indispensable to produce lithium-ion batteries, which power electric vehicles, smartphones, and renewable energy storage systems. The DRC’s dominance in cobalt production positions it at the centre of the global battery supply chain. Companies such as Glencore and China Molybdenum operate large-scale mines in the region, extracting vast quantities of cobalt and copper.
However, the DRC’s cobalt industry faces significant challenges. Artisanal and small-scale mining (ASM) accounts for a substantial portion of cobalt production. ASM is often associated with hazardous working conditions, child labor, and environmental degradation. Efforts to formalize and regulate the sector have been met with limited success, and human rights abuses remain a major concern. The complex supply chain, often involving multiple intermediaries, complicates efforts to ensure traceability and ethical sourcing.
The DRC’s infrastructure, particularly in the mining regions, remains underdeveloped. Poor roads, unreliable electricity, and inadequate healthcare and education facilities hinder mining operations and exacerbate the challenges faced by local communities. Significant investment is needed to improve infrastructure, but political instability and corruption deter many potential investors.
International interest in the DRC’s minerals has led to increased investment in recent years. Chinese companies have been active in the sector, securing long-term supply agreements and investing in infrastructure projects. This has raised concerns about the potential for neo-colonial exploitation and the implications for the DRC’s sovereignty and economic development.
Battery metals supply chain vulnerabilities
The DRC’s dominance in cobalt production presents both opportunities and risks for the global supply chain. Dependence on a single country for a critical material introduces vulnerabilities, particularly given the DRC’s political instability and the ethical concerns surrounding its mining practices. Disruptions in the DRC’s supply can have significant ripple effects, affecting global production of electric vehicles and renewable energy technologies.
Ethical and sustainable sourcing
The ethical issues associated with cobalt mining in the DRC have prompted calls for more sustainable and responsible sourcing practices. Companies are increasingly under pressure from consumers, investors, and regulators to ensure that their supply chains are free from human rights abuses and environmental degradation. Initiatives such as the Responsible Cobalt Initiative and the Better Cobalt project aim to improve traceability and transparency in the supply chain. However, achieving meaningful change requires collaboration among governments, companies, and civil society organizations.
Diversification of supply
To mitigate risks associated with dependence on the DRC, efforts are underway to diversify the supply of battery minerals. Exploration and development of cobalt deposits in other countries, such as Australia, Canada, and Morocco, are being pursued. Additionally, advancements in battery technology, including the development of cobalt-free batteries, have the potential to reduce reliance on cobalt. However, these alternatives are still in the early stages of development and may not be commercially viable for several years.
Economic development and geopolitical implications
The global demand for battery minerals presents an opportunity for the DRC to leverage its natural resources for economic development. However, realizing this potential requires addressing the underlying issues of governance, infrastructure, and social equity. Transparent and accountable management of mining revenues can contribute to sustainable development and poverty alleviation.
Geopolitically, the DRC’s mineral wealth positions it as a strategic player in the global energy transition. Countries and companies seeking to secure supply chains for critical minerals must navigate the complex political and economic landscape of the DRC. The interplay between international actors, including China, the United States, and the European Union, will shape the future of the DRC’s mining industry and its role in the global economy.
The past and present of battery minerals and metals in the DRC reveal a complex interplay of opportunity and challenge. The country’s mineral wealth positions it as a key player in the global energy transition, but realizing this potential requires addressing significant ethical, environmental, and governance issues. The global community must work together to ensure that the DRC’s resources are developed responsibly, benefiting both the local population and the broader goal of a sustainable and equitable energy future.
The supply constraints for battery metals and minerals are multifaceted, encompassing geological, geopolitical, economic, and environmental factors. Here’s an in-depth look at the main supply constraints affecting the market for these critical materials:
Finite resources: The earth’s reserves of key battery minerals like lithium, cobalt, and nickel are finite, and their availability is limited by natural deposits.
Quality of Ore: The concentration and quality of the ore can vary significantly, affecting the ease and cost of extraction.
Battery metals: extraction and processing
Technical challenges: Extracting and processing these minerals can be technically challenging and resource intensive. For example, lithium extraction from brine requires extensive water usage and evaporation processes, while hard rock mining involves significant environmental disruption.
Geopolitical constraints
Country dominance: Certain countries dominate the supply of key minerals. The DRC, for instance, produces over 60% of the world’s cobalt, while Australia, Chile, and China are major lithium producers. This concentration creates vulnerabilities and risks associated with political instability and policy changes in these regions.
Trade policies and export restrictions
Tariffs and quotas: Trade policies, tariffs, and export restrictions can disrupt supply chains. For example, China’s dominance in rare earth elements has led to concerns about potential export restrictions affecting global supply.
Geopolitical tensions
International relations: Tensions between major economies (e.g., U.S.-China trade relations) can impact the availability and cost of battery minerals, influencing the stability of supply chains.
Investment and capital expenditure
High costs: Mining and processing battery minerals require substantial capital investment. Economic downturns or volatile market conditions can lead to reduced investment in new projects or expansion of existing ones.
Financing challenges: Securing financing for mining projects can be difficult due to the high risks and long lead times associated with bringing new mines online.
Market demand and price volatility
Demand fluctuations: The demand for battery minerals is closely tied to the growth of the EV market and renewable energy storage. Fluctuations in demand can lead to price volatility, affecting the economic viability of mining projects.
Price swings: Prices for battery minerals can be highly volatile due to supply-demand imbalances, speculation, and market sentiment, impacting the stability of supply.
Environmental and social constraints
Regulatory compliance: Mining operations must comply with stringent environmental regulations, which can increase costs and delay project timelines. Issues such as water usage, habitat destruction, and carbon emissions are significant concerns.
Sustainability pressure: There is increasing pressure from consumers, investors, and governments for sustainable and environmentally responsible mining practices, which can constrain supply if companies are unable to meet these expectations.
Social impact and community relations
Human rights concerns: The mining of battery minerals, especially cobalt in the DRC, has been associated with human rights abuses, including child labor and unsafe working conditions. Addressing these issues is critical but challenging.
Community opposition: Local communities may oppose mining projects due to concerns about environmental degradation, health impacts, and inadequate compensation, leading to delays or cancellations.
Technological advances and innovation
Extraction and processing technologies: The development and deployment of advanced extraction and processing technologies can enhance efficiency and reduce environmental impact. However, technological constraints and the slow pace of innovation can limit these improvements.
Recycling technologies: While recycling of battery materials is a promising solution to supply constraints, the technology is still developing, and current recycling rates are low.
Infrastructure and transportation
Logistical challenges: Poor infrastructure, especially in remote mining regions, can hinder the transportation of raw materials to processing facilities and markets.
Supply chain complexity: The battery minerals supply chain is complex, involving multiple stages from mining to refining to manufacturing. Disruptions at any stage can impact overall supply.
Global dependencies: The global nature of the battery minerals supply chain means that disruptions in one region can have ripple effects worldwide. For example, delays in shipping or port closures can cause significant supply chain bottlenecks.
Addressing battery metals supply constraints requires a multifaceted approach, including increased investment in mining and processing infrastructure, development of new technologies for extraction and recycling, improved regulatory frameworks, and international cooperation to ensure stable and ethical supply chains. Diversifying sources of supply and enhancing the sustainability of mining practices will also be crucial in meeting the growing global demand for battery minerals and metals.
