The Cobalt News, July 2015 - Cobalt Development Institute
Transcription
The Cobalt News, July 2015 - Cobalt Development Institute
COBALT NEWS PUBLISHED BY THE COBALT DEVELOPMENT INSTITUTE 15/3 July 2015 2 Comment 3 Report from THE Cobalt Conference 2015 8 Spintronics – Molecules stabilising magnetism 9 The Lithium-Ion Battery Megafactories Are Coming 10 Tesla unveils batteries to power homes COBALT NEWS CHAIRMAN D. Elliott (Freeport-McMoRan Sales Co. USA) VICE CHAIR T. Litzinger COMMENT (ICCI, Bahamas) DIRECTORS I. Akalay (CTT, Morocco) H. Gibbs (OMG Americas, USA) J. Green (Sandvik, USA) G. Jones (Shepherd Chemicals, UK) J. Lowe (Dynatec, Madagascar) M. Oehlers (Shu Powders, China) V. Mittenzwei (Kennametal, Inc., USA) M. Majka (Eramet Group, France) B. Sap (Umicore, Belgium) F. Schulders (Glencore Intnl, Switzerland) T. Southgate (Chambishi Metals, Zambia) H. Sueta (Sumitomo MM, Japan) N. Williams (Vale, Canada) THE COBALT DEVELOPMENT INSTITUTE 18 Jeffries Passage, Guildford, GU1 4AP, UK Tel: (0)1483 578877 Fax: (0)1483 567042 email: [email protected] web: www.thecdi.com Editor: D. Weight – Production: I. Porri The Cobalt Development Institute carries out activities from a head office in Guildford, UK, to promote the use of cobalt. It is legally incorporated as an association of a wholly non-profit making character in accordance with its memorandum and articles, which are available on request. Membership of the CDI is open to those engaged or interested in the industry, subject to and acceptance by the Board. Cobalt News exists to disseminate promotion material on uses for, and development in, cobalt technology supported by items of interest to cobalt producers, users and all their customers. Unless otherwise stated as copyright reserved, Cobalt News permits the reprint of articles if fully credited to Cobalt News and its contributors where appropriate. Comment is the responsibility of the Editor. Views expressed by the contributors are their own. Neither necessarily reflects those of the Institute, its directors or its members. nd The 22 Annual CDI Cobalt Conference took place in Toronto on 20/21 May and in spite of the rather challenging markets, at least for our Mother metals, over 150 delegates heard keynote and topical presentations covering a broad range of important industry related topics. The mood at the Conference was upbeat and there was much positive news from the Conference presenters on the future position of the cobalt market. Without question, the main driver for the cobalt market over the past 10 – 15 years has been rechargeable batteries and this is likely to continue for the foreseeable future – provided the battery chemistry of choice remains favourable to cobalt! This is strongly supported by continued growth in aerospace and automotive applications. The Conference presentations also looked closely at responsible sourcing from both the NGO and mining industry perspective and it is important to appreciate that cobalt strongly supports these initiatives and promotes transparency in the value chain. The next CDI Cobalt Conference will be held at the Intercontinental Hotel in Seoul, South Korea on 11/12 May 2016 and information will be posted on the website later in the year. It is the only purely cobalt conference internationally and attracts the important players in this sector. To get informed on matters related to cobalt and to network with key cobalt stakeholders then we highly recommend you attend this annual event. Material is presented for the general information of the reader, and whilst believed to be correct, the CDI, its members, staff and contributors do not represent or warrant its suitability for any general or specific use and assume no liability of any kind in connection with the provision of the said information. The Cobalt Development Institute is an English Company Limited by Guarantee registered at 18 Jeffries Passage, Guildford, GU1 4AP Cobalt News, 15/3 2 THE Cobalt Conference 20/21 May 2015 – Toronto, Canada On 20/21 May 2015 the great and the good of the cobalt industry descended on Toronto for the Institute’s Annual Conference, and even though metal markets remained challenging, some 150 delegates participated in an interesting and highly topical conference looking broadly at the cobalt market. There were numerous market reports; project updates; presentations on key and new enduses; a focus on responsible sourcing (from both an NGO and Industry perspective) and an outline of how the Cobalt Development Institute effectively represents the industry on a global basis, addressing key issues that affect our market and protecting market access for cobalt. Market sentiment from the previous year had been high, but as it transpired the cobalt price rather sagged during the subsequent year, pulled down by the lower demand and weakening prices affecting the Mother metals, copper and nickel, during the period. Nonetheless the current outlook for cobalt appears good given the continued growth anticipated in some end-use sectors of the cobalt market and this was highlighted during the conference, both in conference presentations and also in the satellite meetings – so the overall mood in the cobalt fraternity was most upbeat for the medium to longterm. CDI President, David Weight welcomed the delegates to the annual Conference and suggested that it had been another challenging year for the metals industry as a whole, with slackening demand in many sectors and the emergence of even more Regulatory issues globally. Whilst the cobalt industry fully supports the need for responsible sourcing and safe use of this critical, technology enabling metal it is appropriate to comment that there is a wholly disproportionate focus by Regulators and policy makers on our small and highly specialised industry. Much more should be done by these agencies to understand the potential impact on industry, technological development, clean energy potential, efficient industrial processes and innovation as a result of this overreaction to the hazard profile of cobalt and other metals. As an industry we re-iterate that Regulation should be based on ‘risk’, not hazard. The CDI is undertaking cutting edge science to understand more fully the effects of cobalt in regards to human health and the environment and we would urge Regulators and policy makers to work with us in this respect to ensure that societal benefits of cobalt are also protected. Cobalt News, 15/3 Our Chairman, David Elliott of Freeport-McMoRan Inc (majority shareholder and operator of Tenke Fungurume, DRC), then opened the CDI Cobalt Conference formally and went on to emphasise the strong value proposition offered by the Institute and encouraged those who were not Members to consider joining in order to improve the effectiveness of the CDI in protecting market access for cobalt, particularly now when we are seeing a significant growth in global chemical regulation and the need to demonstrate responsible sourcing and further transparency in the value chain. David Weight began proceedings with an outline of the CDI value proposition – “Adding Value, Getting Results”. He explained that the CDI: • Adds value by identifying and tackling important issues on behalf of the Cobalt industry: • Is a highly proactive organisation that demonstrates value for money with its work • Is Part of the Solution – greater emphasis by stakeholders on the Trade Association reduces their bottom line costs through employing captive, expert resources on a shared basis. Figure 1 Advocacy and PR Manager, Brigitte Amoruso then explained more about what the CDI does on behalf of the industry, outlining the main Regulatory concerns for our industry, and emphasising the need for a proportionate approach by Regulators (Fig. 1). Brigitte explained how cobalt was critically important for industry and society, was a technology enabling metal and one that is vital to support the green agenda and innovation in industry. The first keynote and eagerly awaited presentation was from Peter Searle of CRU who spoke on the “Cobalt: Market Balance in the 2020s?”. 3 be focusing on expanding in the automotive and stationary sectors. He also explained the features attributable to the cathode material in the various battery systems (Fig. 4). He concluded a most illuminating presentation by suggesting that cobalt is the most important material for lithium ion batteries and that the cobalt metal business is expected to grow due to expansion in the lithium ion battery market. Figure 2 Interestingly he showed how strongly cobalt demand had grown since 1987 (Fig. 2). He also showed that the compound annual growth rate (CAGR) for cobalt had been firm for a long period and was expected to maintain this growth for the foreseeable future (Fig. 3). In summary the CRU considered that demand growth for cobalt would remain strong, largely driven by rechargeable batteries containing cobalt; that a constraint in the future could be from the supply side; but equally the growth in cobalt demand was largely unpinned by the current accepted chemistry for certain important battery applications – but what if this changes? was his final question. Figure 4 Our next key note presentation was from Munehisa Ikoma, CTO Director, Energy Technology Development Centre, Automotive & Industrial Systems Company of the Panasonic Corporation who gave a paper on “Future direction of Lithium Ion Battery” and he outlined the 84-years of battery business in Panasonic, providing some indications of market growth and indicating that Panasonic would Cobalt News, 15/3 Figure 3 Those who follow the CDI Conference will have noted how the importance of chemical regulation has grown over the years. This was initially resulting from the REACH Regulation in the EU but now on a world-wide context. Our next speaker was from the Chemical, Inspection and Regulatory Services (CIRS) of China and Eric Xiong, Head of Industrial Chemical Sector, gave practical advice for the impending Chinese and Korean chemical regulations. For China he gave an outline of the new Regulation and explained the chemical notification types and the overall process. With regard to Korea, Eric explained that the new Regulation, which was similar to REACH st in the EU, had come into force on the 1 January 2015 and that the first list of substances would be published probably in October and then every three years. The Korean Regulation focuses on the Registration and Evaluation of Chemicals and the Chemical Control Act focuses on the control of hazards, particularly with respect to chemical accidents. This presentation gave good insights and guidance into the nature of these important Regulatory developments in China and Korea. 4 Decker presented to Conference on Leveraging Technology in the Development of Market-Leading Lithium Power Tools. She emphasized that cordless power tools were still evolving and were improving in performance all the time. In terms of evolution the technology has moved from the older Ni-Cd systems to the more versatile Li-ion which was now dominating the power tool industry (Fig. 5). Figure 5 Lisa noted that recent research (Avicenne) suggested that there could be a 3-fold increase in the amount of cobalt cathode materials over the next 10-years, but cautioned that the development of cordless technology would be dependent upon the battery supply chain and that 20% of a power tool cost was in the battery cathode material. The need for transparency in the supply chain is well recognised by CDI Members and indeed the majority of responsible mining companies. To this end Stephen D’Esposito, President of RESOLVE looked at the Trends in Supply Chain Transparency and Sustainability. He explained that there are an increasing proliferation of standards and certification systems to measure the assurance variables, such as certification, and outlined important trends and ideally what sort of strategic pathway should be followed to ensure a responsible sourcing approach was fully achieved for raw materials. Sustainability in the supply chain is often scrutinised by the NGO fraternity, so it was interesting to receive a presentation from Kevin Bradley of Sustainable Enterprise Consulting looking at Responsible Sourcing in the Mining and Metals Industry. In what was a very comprehensive paper, Kevin outlined the common issues and the sources of pressure – largely from consumers, government, general public and activists inter alia. He explained that through the International Committee on Mining and Metals (ICMM) some industry guidelines had been established and explained how these should be integrated into decision making processes of mining companies (Fig. 6). Moving on to cobalt production, the Sumitomo Metal Mining (SMM) Activities in the Philippines have grown appreciably over more recent years and activities in Coral Bay and Taganito have now expanded the capability of SMM to produce cobalt. Yoshiteru Sato, Manager of Nickel Production Section, Niihama Nickel Refinery, Japan, presented on the SMM HPAL/Electrolysis Cobalt Refining Process. He explained about the High Pressure Acid Leach (HPAL) process and how this was adapted for the SMM sulphide route for nickel and cobalt extraction. He outlined the greater efficiencies that SMM obtained in the extraction of nickel and cobalt from pressure acid leach of limonite, the resultant mixed sulphides being efficiently treated at the Niihama refinery in Japan. SMM is now an important producer of high grade refined cobalt. It is appropriate to say that members of the ICMM and the CDI have developed basic Principles by which they should operate and this is very helpful in understanding and having confidence in the cobalt mining industry position on responsible sourcing. The principal use of cobalt is in lithium ion battery systems and we were most fortunate that Lisa King, the Manager, Battery Technology, Stanley Black & Cobalt News, 15/3 Cobalt turns up in a broad range of end-use applications and is often supporting innovative Figure 6 5 products and processes, perhaps few more important that the computer industry. Bob Leet of Intel, representing the US Semiconductor Industry Association, presented on the Emerging Potential Uses of Cobalt in Semiconductor Technology, and Regulatory Intersection. He explained that the increased electric current in copper metal wiring on semiconductors is leading to electro-migration of the copper at the atomic level and that cobalt is being considered as a barrier metal to pin the copper metal in place. Bob emphasized that high purity and quality is required for atomic layer control. We heard that Cobalt materials will be needed to sustain future semiconductor device needs but that regulatory pressure that restricts the use of cobalt could be detrimental to this innovative development, noting that this technology supports a mega-sector in the USA and globally (Fig. 7). Figure 7 • • China refines over 40% of the world’s cobalt and is an extremely important player in the global market place. We were therefore delighted that Fan Runze, a Senior Analyst with Antaike Information Services, China, presented a detailed Analysis of the Chinese Cobalt Market 2015-15. He showed that cobalt consumption in this market continued to grow, reaching 38,500tonnes in 2014. Production was also growing and he noted that the proportion of metal production was actually reducing (Fig. 8). • • • Emergence of hi-tech demand disrupting old industries Raw now materials tailored for customer requirements Often not exchange traded; private contracts Closer to chemical industry than mining Lack of investment for a generation In conclusion Benchmark felt that new battery technology would seriously challenge traditional industries. Antaike forecast that cobalt consumption will continue to grow in China and that there would be a further drawdown on any stockpiles of material. Benchmark Mineral Intelligence made their first presentation to the Conference and we were pleased to welcome Andrew Miller who spoke on The Rise of the Battery Megafactories. He pointed out that there had been little short of a revolution in the Li-ion sector in recent years with the explosion in growth for largely portable electronic and electrical devices. He then went on to examine the possible effects of the recently announced plan by TESLA Motors to build a huge battery and vehicle production factory, in conjunction with Panasonic, which could prove a game changer in terms of cobalt market demand. Andrew drew an interesting comparison between commodities and specialist products, suggesting this could change the dynamic of the market: Commodities Versus Specialist Products Cobalt News, 15/3 Figure 8 Information is vital for strategic decision making and the US Geological Survey does a remarkable job in analysing key markets, so the CDI was delighted to welcome Kim Shedd, Cobalt and Tungsten Commodity Specialist at the USGS. She explained that the USGS mission was to collect, analyze, and disseminate information on the domestic and international supply of and demand for minerals and mineral materials essential to the U.S. economy and had a national security goal of providing decision 6 In particular it was noted that these very special metals were vital in critical applications for rechargeable batteries, specialist and super alloys, bio-chemicals and in numerous innovative research areas, such as high entropy alloys, cobalt ferrite nano particles (e.g. enhanced oil recovery) and organic cobalt chemicals (e.g. to absorb oxygen from the air and release when needed). This was a fascinating and informative presentation from our Mother metal which helped appreciate how essential some metals are. nd Figure 9 makers with the information required to ensure that the Nation has an adequate and dependable supply of minerals and materials to meet its defense and economic needs at acceptable costs related to environment, energy and economics. She briefed the meeting on the cobalt market noting that the global reserves were about 7.2million tonnes and that the largest reserves of cobalt lay in the DRC (Fig. 9). Formation Metals have been dedicated to the Idaho Cobalt Project (ICP) for a number of years and Paul Farquharson, President & CEO, together with Rick Honsinger, Vice President, brought delegates up to date with developments. It was explained that In excess of C$100 M including exploration, development, permitting and construction had already been spent since discovery of the ICP in 1997 and stage I and II construction was complete. When operating, the ICP would be the USA’s only commercial cobalt producer and only one of a very few primary cobalt sources globally. The CDI has followed the development of the ICP with great interest over the years and it is remarkable to see what progress has been made and how close the operation is to production. CDI Annual Cobalt With that the 22 Conference came to a close with much for delegates to reflect on. Overall the mood was upbeat and the news from Conference suggested that cobalt demand for the foreseeable future looked set for growth as a result of increased battery demand, growth in aerospace alloys together with new innovative technology such as semiconductors. The need for maintaining and improving sustainability in the sector was also recognised and it was heartening to appreciate that the cobalt industry is fully supportive of transparency in the value chain and recognises the need to demonstrate responsible sourcing of raw materials. The potential damage to industry through disproportionate chemical regulation was once again emphasised and it is our abiding hope that the metals industry and cobalt in particular, are treated proportionately and realistically by Regulators, based on the science and engagement with industry. Tina Litzinger of Sherritt International and Vice Chair of the CDI re-emphasised the work and effective results that the CDI was achieving on behalf of the cobalt industry and recommended that more cobalt producers, fabricators, downstream users and recyclers should seriously consider joining the CDI in order to strengthen its hand in protecting market access for cobalt. She then brought the proceedings to a formal close and looked forward to seeing rd evening greater industry representation at the 23 CDI Cobalt Conference which will be held in 2016 in Seoul, Korea. Cobalt is essentially a by-product of nickel (and copper), so delegates were very pleased to welcome David Butler, President, Nickel Institute (NI) and Gary Coates, Technical Specialist at the Institute who presented on Nickel and Cobalt Synergy – Similarities and Differences. It is interesting to note that nickel and cobalt are often used in conjunction for high performance alloys, but don’t actually compete. The NI is a global body created to Promote and support the use of nickel in appropriate applications. Nickel is largely used in stainless steel applications and is roughly twenty times higher in production compared to cobalt. Cobalt News, 15/3 7 Spintronics—molecules stabilising magnetism Organic molecules allow producing printable electronics and solar cells with extraordinary properties. In spintronics, too, molecules open up the unexpected possibility of controlling the magnetism of materials and, thus, the spin of the flowing electrons. According to what is reported in Nature Materials by a German-French team of researchers, a thin layer of organic molecules can stabilize the magnetic orientation of a cobalt surface. Read more at: http://phys.org/news/2015-07spintronicsmolecules-stabilizingmagnetism.html#jCp "This special interaction between organic molecules and metal The magnetic moments of the three organic molecules and the cobalt surface surfaces could help to manufacture align very stably relative to each other. Credit: M. Gruber, KIT information storage systems in a more simple, flexible and cheaper way," explains Wulf Wulfhekel from The present publication is the result of a cooperation KIT. Microscopic magnets with constant orientation of researchers from KIT, University of Strasbourg, are used in hard disks, for example. With a view to and Synchrotron SOLEIL. First author Manfred "printable electronics", organic molecules indeed Gruber was member of the German-French could open up new simple production methods Graduate School "Hybrid Organic- Inorganic utilizing the self-organization of molecules. Nanostructures and Molecular Electronics", where different aspects of nanoelectronics, spintronics, and In the present study, three molecular layers of the organic electronics are investigated. dye phtalocynine were applied to the surface of ferromagnetic cobalt. Whereas the magnetic moments of the molecules alternatingly align relative to the cobalt and relative to each other, the molecules form a so-called antiferromagnetic arrangement. The magnetic orientation of this combination of antiferromagnetic and ferromagnetic materials remains relatively stable even in the presence of external magnetic fields or cooling. "Surprisingly, the "lightweight" molecule wins this magnetic arm wrestling with the "heavyweight" ferromagnetic material and determines the respective properties," Wulfhekel says. Explore further: New method of nanomagnets for information technology producing More information: "Exchange bias and roomtemperature magnetic order in molecular layers." Nature Materials (2015) DOI: 10.1038/nmat4361 Read more at: http://phys.org/news/2015-07spintronicsmolecules-stabilizing-magnetism.html#jCp First posted on Physics.org on 21/07/2015 Systems of antiferromagnetic and ferromagnetic materials, among others, are used in hard disk reading heads. So far, manufacturing of antiferromagnets has been quite complex and timeconsuming. Should molecules be suitable for use in the production, the antiferromagnets one day will simply come out of the printer. Cobalt News, 15/3 8 The Lithium-Ion Battery Megafactories Are Coming Everyone has heard about Tesla’s $5 Billion Gigafactory and its potential to double lithium-ion battery production capacity. However, it turns out that this merely a cog in the wheel of a bigger trend. Data from Simon Moores of Benchmark Mineral Intelligence shows that there are several other largescale facilities coming online in the next five years that will potentially bring that number substantially higher. Today’s production capacity is approximately 35 GWh worldwide. However, once Tesla’s Gigafactory and the other facilities being built by LG Chem, Foxconn, BYD, and Boston Power are complete, we will have a total capacity in 2020 of around 122 GWh. This exponential ramping up of production capabilities proves that companies are serious about scale and reducing costs. Cobalt News, 15/3 For investors and speculators in the lithium, graphite, and cobalt sectors, there is no doubt that this could be a big boon. While these megafactories will have more negotiating power in their contracts for industrial metal sourcing, they will not be able to create this supply out of thin air. These companies will need a diverse array of sources for industrial metals to reduce any supply risks. The sources also need to be socially responsible, ethical, and professionally managed. Tesla has already stated that they are unwilling to source from places like the Democratic Republic of the Congo, where over half of cobalt supply originates. This creates an interesting dynamic and playing field for the mining companies in this space, and it will be worth watching as battery production ramps up in the coming years. 9 Tesla unveils batteries to power homes US electric carmaker Tesla Motors has unveiled batteries that can power homes and businesses as it attempts to expand beyond its vehicle business. Chief executive Elon Musk announced the firm would build batteries that store solar energy and serve as a back-up system for consumers during blackouts. The device would allow consumers to get off a power grid or bring energy to remote areas that are not on a grid. Tesla plans to start shipping the units to installers in the US by this summer. In a highly anticipated event near Los Angeles, Mr Musk said the move could help change the "entire energy infrastructure of the world". "Tesla Energy is a critical step in this mission to enable zero emission power generation," the company said in a statement. The rechargeable lithium-ion battery unit would be built using the same batteries Tesla produces for its electric vehicles, analysts said. The system is called Powerwall, and Tesla will sell the 7kWh unit for $3,000 (£1,954), while the 10kWh unit will retail for $3,500 (£2,275) to installers. Energy comparison firm USwitch estimates that one kWh can power two days of work on a laptop, a full washing machine cycle or be used to boil a kettle 10 times. Mr Musk said the company would partner with SolarCity to install the home batteries, but there would be more companies announced. Mr Musk is SolarCity's chairman and largest shareholder. Tesla's move into so-called "stationary storage" is a market with enormous growth potential: as the world slowly moves away from fossil fuels, it is seen as critical to a more widespread adoption of "clean" energy sources like solar and wind. There is also a strong commercial rationale for Elon Musk to leverage Tesla's expertise in building highlyefficient car batteries and put them in a single unit in consumers' residences. The business strategy is a bit like the battery itself: high impact, but a slow release which will really only reap significant benefits over time. But it comes with risks. Tesla may face a challenge getting the costsaving message across to potential customers, especially with a significant $3,500 upfront cost. Cobalt News, 15/3 The carmaker also faces competition from batterystorage technology rivals with deep pockets such as GE (General Electric) and South Korea's top chemical company, LG Chem. There is also a danger that this particular lithium ion battery could be superseded within a few years by other technology, like hydrogen fuel cells, which Tesla is not equipped to make. Still, these are risks Tesla is clearly prepared to take on. Its cars have won rave reviews, but precious few sales outside its California heartland. With a $5bn gigafactory not due to open until 2017, and only a single Tesla vehicle available to buy today, diversification of its product line into an area like this will be key to keeping investors happy. The sales of battery storage systems for homes and businesses could yield as much as $4.5bn in revenue for Tesla, according to Deutsche Bank. The automaker reported fourth quarter earnings that missed market expectations in February, as it saw a loss of $107.6m on production and delivery issues. Friends of the Earth's renewable energy campaigner Alasdair Cameron said having solar panels and a home battery in the future could become as common as central heating. "Just as the internet changed the way we information so renewable sources, like wind solar, are changing the way we make and energy - and electricity storage is an important of that change," he said. use and use part "Cheaper and more efficient energy storage means individuals and businesses could save renewable energy until they need it, hugely reducing the need for climate-changing fossil fuels." Colin Brown, director of engineering at the Institution of Mechanical Engineers said Tesla's announcement is timely considering the push by governments to reduce emissions. "Without storage you've always got to have huge capacity just in case one of the peaks come through at a particular time - a very hot day when you need a lot of cooling, and so a lot of demand. With storage, you don't have to have all of that massive production of energy," he said. First posted on http://www.bbc.co.uk/news on 01/05/2015 (http://www.bbc.co.uk/news/technology32545081). 10