Battery & Electrification Trend Acceleration

Get Ready: The Mining Investment Environment

Commodity Insights

Listen to Rob Gray, Chief Commodities Strategist, Resource Capital Funds, discuss how batteries are set to drive a relentless need for key battery metals.

Filmed during RCF’s 2023 Macroeconomic and Mining Environment Update in March 2023

So, batteries are a key driver between what’s happening in the whole decarbonization space. As a part of our strategy session, we had an external consultant who we worked with in the past share some of his organization’s views on how battery sales are going to change over the next decade or so. And the key message here is right at the top of the graph. Battery cells are going to 5X in the next nine years. I mean, that is tremendous growth. That’s all material and metal intensive. And we’re already behind in terms of supplying into that and battery makers as well as OEM’s know that and their interest in our sector is has never been stronger.

Now, in order to achieve that level of production growth, what needs to come before that are all of the gigafactories, all the battery facilities that assemble the battery cells and into packs. We actually reverse the numbers there. You know, battery production in gigafactories, that 9X’s in the next five years. That is tremendous growth. We learned that a gigafactory takes a year and a half to construct and about 3 further years to chemically balance across the 18 different processes within a Gigafactory, so that you can get reliable 85-90% production out of the back end of the battery factory. And we are building hundreds of these all over the world and they are going to consume a tremendous amount of lithium, nickel, copper, and aluminium.

Take your pick, as you know, batteries are incredibly metals intensive and the growth is just truly phenomenal.

What’s discussed: 

  • Rising demand for battery cells in the next nine years
  • Demand for development of gigafactories to meet demand for batteries
  • Need for Lithium, Nickel, Copper, and Aluminium.

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