The rapid expansion of electric vehicles and renewable energy storage is driving unprecedented demand for battery minerals such as lithium, cobalt, copper and nickel. A recent report published by RMI, originally known as the Rocky Mountain Institute, explores how efficiency, innovation, and circularity could reshape the future of mineral demand, aiming for net-zero battery mineral demand by 2050.
“The Battery Mineral Loop: The path from extraction to circularity” highlights that while battery demand is expected to rise significantly, the demand for newly extracted battery minerals could peak within the next decade due to advancements in technology and recycling efforts.
It shares key strategies to reduce dependency on newly mined minerals. This includes deploying new battery chemistries that require fewer critical minerals, improving the energy density of batteries, extending battery life, and scaling up recycling efforts. Authored by Daan Walter, Will Atkinson, Sudeshna Mohanty, Kingsmill Bond, Chiara Gulli, and Amory Lovins, the report says that such measures could enable the industry to transition from a linear extraction model to a circular loop, where end-of-life batteries become the primary source of raw materials for new batteries.
The report also notes the high costs of new technologies, regulatory hurdles, and the variability of recycling rates across different regions can get in the way of implementing these strategies. It also suggests that strong policy support and international co-operation can help overcome these obstacles.
A key takeaway from the report is the potential for battery recycling to significantly reduce the need for new mining. That way, the shift toward a circular economy can also enhance energy security by reducing reliance on imported minerals.
In the report’s executive summary, the authors write:
We won’t have to move mountains. Accelerated progress means we only need to mine a cumulative 125 million tons of battery minerals. This quantity alone can get us to circular battery self-sufficiency. That is 17 times smaller than the amount of oil we extract and process for road transport every year. And, at today’s commodity prices, about 20 times cheaper as well.
“The Battery Mineral Loop: The path from extraction to circularity,” by Daan Walter, Will Atkinson, Sudeshna Mohanty, Kingsmill Bond, Chiara Gulli, and Amory Lovins. Report, RMI, July 2024.
Download the full report originally published by RMI in July 2024.
