When contemplating the energy transition, common associations include solar and wind power, lithium for electric car batteries, and the potential of green hydrogen. Less recognized is the significant role that niche metals will play in achieving the goal of net-zero carbon dioxide emissions by 2050.
These metals—cobalt, lithium, manganese, nickel, platinum, and rare earths—are indispensable for the processes involved in decarbonizing energy, industry, and transport, as well as propelling the digital revolution.
The essentiality of metals in our daily activities is underscored by Marco Corbella, Vice President of Tenova Metals, who states, “We do everything with metals, from driving the car in the morning to cooking our dinner at night and everything in between. Everything is made of metals.”
However, a challenge emerges for the energy transition—how to decarbonize the production of these metals. Historically, most of these metals were produced in China, where environmental regulations were traditionally less stringent than in the West. Yet, recent geopolitical events, such as disruptions in the global supply chain during the pandemic, Russia’s conflict in Ukraine, and escalating US-China tensions, have prompted a shift towards increasing production of these metals in the West.
This shift poses several challenges. Firstly, there is a need to produce these metals adhering to stricter environmental standards, now required not only in the West but increasingly demanded by consumers, investors, and the producers themselves. Secondly, this must be achieved at a low enough cost to compete with Chinese products. Thirdly, there is a necessity to rapidly scale up production to meet the growing demand for critical metals in the energy transition and their applications in the burgeoning digital economy, such as the rise of artificial intelligence.
The consequence has been a surge in demand for effective, sustainable, and economically viable technologies capable of producing these critical metals with low emissions and costs.
Consider lithium, a key metal in enabling clean energy in electric vehicles. While the metal is crucial for clean energy, traditional extraction methods like brine and hard rock mining have environmental drawbacks. In response, Tenova is collaborating with Germany-based chemical and battery producer BASF to construct the world’s first demonstration plant for recycling lithium-ion batteries primarily using water.
This innovative process not only recovers metals like lithium, nickel, cobalt, and manganese but also minimizes water waste, despite being a water-intensive procedure. The production of new lithium batteries from old ones results in significantly lower carbon emissions compared to manufacturing virgin metals for batteries.
Similar recycling projects are emerging, not only in the West but also in China. Tenova recently constructed another smelter in China to recover these metals from auto catalysts.
These recycling technologies exemplify the principles of the circular economy, wherein resources are reused to minimize the need for extracting new resources.
Tenova is also actively developing technologies to produce critical metals with low emissions and competitive costs. In the United States, for instance, it is designing a highly efficient and modern silicon metal plant to supply the refined material to the rapidly growing electric car, renewable energy, and energy storage industries.
Corbella notes that the decarbonization of the metals industry is occurring progressively, starting with the steel industry’s investments in emission-reducing technologies to meet the growing demand for eco-friendly products. This will extend to encompass scope 2 and 3 emissions (emissions from ferroalloys and other metals) and metals crucial for the energy transition. He emphasizes that “The next waves will come from copper, from lithium, etc., and we are starting to see it happen in the markets and at a global level. This is a journey, and it’s just starting.”