Australia’s critical minerals to drive USA's EV battery programme
Published by Jessica Casey,
Editor
Global Mining Review,
Australia’s critical minerals will drive the US’ electric vehicle battery programme, following the announcement by the US to grant Australia preferred status.
The Inflation Reduction Act is a major step forward for the Australian government’s manufacturing agenda and will help underpin the demand for high quality Australian battery minerals.
Under the Act, 40% of the value of the critical minerals in the battery must be sourced from a country that has a free-trade agreement with the US, increasing to 80% by 2027.
Driving investment in local processing and manufacturing will also ensure the demand for Australian mined minerals including lithium, cobalt, nickel and copper.
Importantly, it will also strengthen the case for investment capital into mining.
Australian mining needs about $20 billion per year to sustain current production.
If Australia are going to increase the capacity of existing mines, or open new mines – including in the commodities needed for our global transition to net zero emissions – capital investment will need to be increased by an order of magnitude.
The Bank of America estimates that US$150 billion per year will be needed in global mining to produce the minerals needed to achieve the global transition to net zero.
Australia needs to position itself as a competitive destination for this capital in order to realise its full potential.
Read the article online at: https://www.globalminingreview.com/mining/25082022/australias-critical-minerals-to-drive-usas-ev-battery-programme/
You might also like
Supporting The Evolution Of Electrification
Mika Kinnunen, Normet, discusses why supporting new adopters of electrification and battery technology in the mining industry throughout the lifecycle is vital.