Australia in the driver’s seat for EV metals sprint

afr.com:

If the world is to reduce its reliance on fossil fuels – turning to electric vehicles in what will be a massive transition — then the metals and mining sector is the beating heart of the solution.

Of all the major resources necessary to power a net zero future through electrification, Australia has the five key metals and minerals in abundance: lithium, nickel, aluminium, cobalt and copper.

Australia’s metals and minerals will help power net zero goals. iStock

Australia is the biggest exporter of lithium, accounting for 27 per cent of all known deposits and more than half of global production. It also has 22 per cent of the world’s nickel deposits, 13 per cent of copper deposits and is the world’s third-largest producer of rare earths.

Add to this a number of mineral sands critical to the production of low-carbon industries and Australia is set to become a powerhouse for the global transition to cleaner energy.

The size and scale of this transition is immense.

By 2030, electric vehicles — including both fully electric and plug-in hybrid models — are estimated to make up 35 per cent of new vehicle sales globally, according to a forecast included in the International Energy Agency’s annual Global EV Outlook report.

Benchmark Mineral Intelligence projects that $US514 billion needs to be invested across the battery chain globally to meet forecast demand in 2030 – some $US220 billion of that in upstream mining alone.

For Amanda Taylor, managing director and head of large corporates and sustainable finance for HSBC Australia, there are windfall opportunities surrounding transition metals and minerals.

“Whether it’s companies or countries, there’s an economic advantage to getting this right,” Taylor says.

While slow to move on