Demand for critical minerals doubled last 5 years: huge opportunity for Australia to profit from renewable transition

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Image: Critical minerals CSIRO

Australia could play critical role EVs, solar minerals

Australia could stake a massive claim on the world’s booming critical minerals market, a report has found, but only if policymakers, researchers, mining firms and investors act quickly.

The CSIRO issued the warning on Wednesday in a report examining Australia’s processing capabilities for in-demand minerals and opportunities in the industry valued at $482 billion ($US320 billion).

Critical minerals such as lithium, cobalt, graphite, silicon and rare-earth elements are used to make electric vehicles, solar panels and wind turbines, and demand for the minerals has doubled over five years.

The CSIRO report, From Minerals to Materials, found Australia was uniquely placed to play a significant role in the industry due to its rich mineral resources, institutions and active research sector.

But the study also identified weaknesses in the nation’s current approach, finding it was advanced in some areas, such as lithium and cobalt research, patents and pilots, but had limited experience in others, such as rare-earth research or solar panel recycling patents.

“The opportunity for new suppliers to enter the critical minerals market is now, however insufficient coordination and understanding of existing capabilities and technology pathways could hinder Australia’s progress,” the report found.

It also called for greater investment in research, development and demonstration projects, particularly those that could uncover more efficient and environmentally friendly methods of processing critical minerals.

CSIRO Futures minerals lead Max Temminghoff said the report proved Australia had the potential to create clean energy exports that were “essential to the energy transition and in high global demand”.

“By fostering innovation and collaboration, Australia can … capitalise on the international demand for minerals needed to support the energy transition,” he said.

Australian Critical Minerals Research and Development Hub manager Lucy O’Connor said she hoped the report would provide guidance to the industry, partners and investors about opportunities and challenges in the sector.

Greater research funding, she said, could help Australia boost its mid-stream minerals processing and establish environmental, social and governance guidelines.

“We need to ensure research is targeted to industry problems and outcomes and can be developed into commercially applicable technologies,” she said.

The report also forecast demand for critical minerals to grow, predicting global demand for lithium would continue to rise with the popularity of electric vehicles and with the emergence of next-generation battery technology.

Australian Associated Press

Prioritising research, development and demonstration (RD&D) investment and international collaboration are essential to helping Australia become a leader in the global energy transition, according to a new report by CSIRO, Australia’s national science agency.

Released today, the report is the first comprehensive assessment of innovation in critical minerals refining required to build a sovereign mid-stream processing industry in Australia.

The demand for energy transition minerals has doubled in the past five years to US$320 billion, led by the exponential growth of electric vehicles (EVs) and the continued deployment of solar and wind energy.

The report provides data on the current capabilities and RD&D and international co-operation opportunities across lithium, cobalt, silicon, rare earth elements and graphite.

The report takes the guess work out of investment and policy decision-making, by unpacking the processing technology options to make essential materials for:

  • lithium-ion batteries used in electric cars
  • rare earth magnets used in electric cars and wind turbines
  • solar PVs.

Max Temminghoff, Minerals lead at CSIRO Futures, said the report would contribute to Australia’s efforts to develop beyond mining and shipping to higher value processing and manufacturing using critical minerals.

“This report presents an optimistic outlook, providing insights into current RD&D capabilities and a pathway forward,” Mr Temminghoff said.

“Australia has a rich critical minerals resource endowment and world-leading capabilities across several mid-stream activities.

“To become competitive in mid-stream processing, promoting innovation, coordinating efforts across industry, research and government and international collaboration are essential.

“Innovation plays a crucial role in improving existing commercial processes and introducing disruptive technologies to support cost-competitive and sustainable production of materials in Australia that are essential to the energy transition and in high global demand.

“By fostering innovation and collaboration, Australia can also capitalise on the international demand for minerals needed to support the energy transition and strengthen its global leadership in critical mineral processing.”

CSIRO’s Mineral Resources Director Dr Rob Hough said the report was timely.

“This report showcases Australia’s technical strengths and homegrown capability, presenting opportunities for significant innovation and international partnerships,” Dr Hough said.

Australian Critical Minerals Research and Development Hub Manager Lucy O’Connor said R&D had a pivotal role to play in realising Australia’s potential in critical mineral processing, commercialising the sector and establishing the ESG standards and practices that set Australian industry apart.

“We need to ensure research is targeted to industry problems and outcomes and can be developed into commercially applicable technologies,” Ms O’Connor said.

“This report provides information industry, international partners and investors, as well as the R&D sector, need to identify comparative opportunities as well as the most challenging technical bottlenecks for the sector when developing integrated supply chains in critical minerals.”

The report was funded by the Critical Minerals Office in the Department of Industry, Science and Resources and will also help inform the Australian Critical Minerals Research and Development Hub, a $50.5m initiative which brings together Australia’s leading science agencies – ANSTO, CSIRO and Geoscience Australia.

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