Raw materials for cathode materials are lithium, cobalt and nickel, and for anode materials – graphite. Production of these metals and minerals has been growing rapidly in the last decade. According to the Energy Institute, natural graphite production increased by 48% between 2013 and 2023 (from 1.26 million to 1.67 million tons), lithium by six and a half more times (from 30,400 to 198,000 tons), cobalt – by 50% (from 131,600 to 196,900 tons), and nickel – by 43% (from 2.67 million to 3.81 million tons).
The sharp increase in demand has led to expansion of geography and diversification of mining methods for valuable minerals. While Australia accounted for 43% of global lithium production in 2023, its share in the capacity structure of new projects to be implemented through 2030 will be only 8%. According to Infomain’s estimates, the main increase in lithium production capacity by the end of this decade will be in South America (42%) and North America (24%), as well as in Africa (12%) and European countries (14%). In turn, spodumene (the mineral from which lithium is extracted) will account only for 39% of “new” lithium production through 2030, while brines will account for 46% and the other methods, including lithium extraction from clay and groundwater, will account for 15%.
Diversification is also taking place in the production of raw materials for anode materials. It is not only synthetic graphite, an alternative to natural graphite, but also lignode, a solid carbon from lignin contained in the outer layers of wood cell membranes. The lignode production chain comprises two major stages. Lignin from pine and spruce trees which is produced as the pulping by-product is processed into solid carbon powder used for making electrode sheets and rolls from which the material for negative anode of lithium-ion batteries is “cut”. The first projects to produce batteries using lignite are supposed to be implemented in the second half of the 2020s (Stora Enso has corresponding investment plans).
The growing demand for energy storage creates new opportunities for the developing countries. For example, China, the world’s leading graphite producer, is the largest processor of lithium, cobalt and graphite, as well as a leading producer of cathodes, anodes and battery cells. In turn, Indonesia is the world’s largest producer and processor of nickel; DR Congo is the leading producer of cobalt; and Chile is the second largest processor of lithium.
