THE COBALT CONFERENCE 2019, HONG KONG, 15 -16 MAY...The Cobalt Institute (CI) is a global industry...

Cobalt Institute 1 18 Jeffries Passage, Guildford, GU1 4AP, UK

Tel: + 44 1483 578877 [email protected]

www.cobaltinstitute.org

THE COBALT CONFERENCE 2019, HONG KONG, 15-16 MAY ABSTRACTS

PRESENTATION COBALT INSTITUTE - ADDING VALUE, GETTING RESULTS

Mr David Weight

President – CI & Director – Cobalt REACH Consortium Ltd

The Cobalt Institute (CI) is a global industry association which works collectively on behalf of its Members, who themselves constitute >70% of cobalt production, and represents the cobalt industry at many levels, addressing multiple issues of importance. In particular, the CI develops cutting edge science relating to safe production and use; works on the sustainability credentials of cobalt; looks closely at responsible sourcing and interacts with the Regulatory authorities and policy makers in an endeavour to protect market access for cobalt. The CI provides compelling value to its members and represents the interests of a large part of the cobalt industry with an excellent benefit to cost ratio.

There are many challenges for cobalt, all of which could affect market access for this critical, strategic and essential, technology enabling metal. The CI will outline the main issues for cobalt, explain how we are addressing them and what the results we anticipate and what the impact could be.

SESSION 1 – WEDNESDAY 15 MAY

STABILISING COBALT: HOW NEW SUPPLY LIQUIDITY COULD BRING A NEW ERA OF PRICE STABILITY

Mr George Heppel

Senior Analyst - Cobalt, Lithium & Battery Markets

https://www.cobaltinstitute.org/




The last few years have been a rollercoaster of activity within the cobalt market. The world entered 2017 with cobalt prices remaining stable at $14/lb, before prices skyrocketed to a peak of $44.50/lb in May 2018, leading to many concerns around whether sufficient cobalt could be supplied for the impending widespread EV adoption. However, since the dizzying highs of 2018, prices have stabilized at significantly lower levels, with average cobalt prices sitting at just $15/lb in Q1 2019.

Challenges abound for the battery industry when it comes to sourcing cobalt, including issues with traceability, uncertainty of supply and issues of political risk. However, in spite of these issues CRU does not expect a return to the price volatility of 2017-2018. In this talk, CRU cobalt analyst George Heppel will give an overview of what led to the 2017-2018 boom and bust of the cobalt market, the key structural changes that have occurred in the market and why another price cycle may not happen again in the mid-term.

THE DRC AND COBALT SUPPLY

Mr Mabolia Yenga

CTCPM / RDC

LA RDC ET L’APPROVISIONNEMENT EN COBALT

1. Brève présentation du cadre légale qui régit l’exploitation minière en RDC, notamment : • Les conditions d’accès et l’éligibilité ; • La prise en compte des principes et critères de la transparence ; • Le renforcement de la responsabilité industrielle, environnementale et sociétale

de l’opérateur minier ; • Une fiscalité instaurant un partenariat gagnant – gagnant.

2. La production du cobalt en RDC, ainsi que les potentialités, les projections et perspectives à l’horizon 2022 et 2025.

3. Les difficultés du secteur minier congolais, notamment : • le déficit énergétique ; • présence des enfants dans les mines ; • absence d’une industrie locale de transformation du cobalt

This presentation will discuss the production of cobalt in the DRC:





1. Brief presentation on the legal framework which covers mining in the DRC, notably: • Conditions of access and eligibility • Transparency principles and criteria • Reinforcement of industrial, environmental and social responsibility of mining companies • A fiscal policy conducive to a win-win partnership

2. Cobalt production in the DRC, as well as potential, projections and perspectives going forward to 2022 and 2025

3. The difficulties of the Congolese mining sector, notably: • The energy deficit • Child labour in the mines • Absence of a local industry for the transformation of cobalt

COBALT OPPORTUNITIES FROM DEEP-SEA RESOURCES

Mr Tom Albanese

CIC

The world has known of the existence of deep sea manganese nodules for more than 50 years. While previous surveys have focused on their tremendously large endowments of manganese, iron, copper and nickel, they also represent a nearly inexhaustible supply of cobalt and other key metals for the future E-Vehicle revolution. Notwithstanding this geologic abundance, it’s been long perceived that the technical challenges are too difficult, too expensive, or not environmentally sustainable. In actual fact, tremendous improvements have been made in working commercially in deep waters over the past 10 years, and nodules now represent a credible and viable source of Co within the next several years.

The author is an experienced senior leader in the terrestrial mining industry and exhibited these same doubts a dozen years ago. As he has seen the development of deep water technologies, and the correspondingly more difficult challenges of terrestrial mining, he’s become personally very active in a private consortium made up of an experienced team of deep sea explorers and operators. This consortium is focused on deep sea nodule extraction focused on cobalt and sees it as a very real source of future cobalt supply in the near future.





NORNICKEL – SUSTAINABLE COBALT SUPPLIER

Mr Alex Khodov

Principal Nickel & Cobalt Analyst - Norilsk Nickel

The presentation will look at the cobalt operations of Norilsk Nickel and in particular will focus on:

• The sustainability issues of cobalt supply • Nornickel – resource, our cobalt products and production process & environmental

improvements

COBALT: PERSPECTIVES ON FUTURE RESOURCE SUPPLY

Dr Richard Herrington1 & The CoG3 Research team2

The Natural History Museum, Cromwell Road, London

Cobalt is a metal associated with modern technologies with the Li-ion battery industry using around 42 percent of global cobalt production. Of the battery metals, Co appears to have the tightest supply and demand fundamentals. Over 95 percent of the world’s primary cobalt comes as a by-product of nickel or copper mining. Furthermore, 55% of that by-product production is located in the DRC, some of which is linked to unethical mining practices. Recent price hikes for cobalt suggests that we have witnessed the perception of increased scarcity of future cobalt supply. Mines producing complex arsenide ores in Morocco are the only primary cobalt producers, with cobalt largely recovered as a by-product of copper and nickel mining so an added pressure to supply may be that the falls in the prices

1Prof Richard Herrington, The Natural History Museum, Cromwell Road, London SW7 5BD

2 http://www.nhm.ac.uk/our-science/our-work/sustainability/cog3-cobalt-project.html


http://www.nhm.ac.uk/our-science/our-work/sustainability/cog3-cobalt-project.html




of those major metals could cut the supply of by-product cobalt. In the short term at least, with a growing cobalt market, new resources are needed to secure future supply.

In absolute terms, the planet’s cobalt resources are more than adequate, for example the deep ocean manganese nodules are estimated to contain more than 120 million tonnes of cobalt, yet imminent supply from these sources is unlikely. As a result, industry has turned to seeking terrestrial cobalt in a range of neglected deposit types such as those related to arsenides. There is also the realization that by changing recovery strategies in existing operations, by-product cobalt production could be increased dramatically.

This talk will highlight the ongoing results of a research project CoG3, funded through the UK’s NERC SoS Minerals programme that has focused on the geology, geomicrobiology and geometallurgy of cobalt deposits with the aim of increasing recovery of cobalt from the diversity of natural deposits http://www.nhm.ac.uk/our-science/our-work/sustainability/cog3-cobalt-project.html. This talk will integrate results emerging from this research with work by other groups where it is shown that in many cases, simple changes to processing methods could extract more cobalt currently lost at existing or dormant operations, often close to where the metal is needed. For other scenarios with more complex ores, implementation of innovative technology could be the near-term game-changer needed to stimulate a diversity of supply of primary cobalt needed for the growing green economy.

COBALT PRODUCTION COSTS AND THE FACTORS DRIVING THE VIABILITY OF NEW SUPPLY

Mr Oliver Heathman

Manager, Mining Research & Cost Modelling - Roskill

Projections of future cobalt demand vary widely, however there is a general agreement that supplies of refined cobalt (principally cobalt sulphate) and cobalt feedstock need to grow significantly. While there is set to be sufficient feedstock supply to the mid-2020s, if advanced DRC projects ramp-up as expected, new greenfield projects will eventually need to be developed to help satisfy demand from the automotive sector.

This paper looks at the current cost structure of mine supply, and then uses this as a foundation to evaluate the key primary cobalt and by-product nickel and copper projects within the development pipeline and investigate the factors driving their viability and likely development. Finally, it will look at the costs of processing cobalt intermediates through to refined products for use within the battery supply chain and discuss the scale of investment the industry could require.


http://www.nhm.ac.uk/our-science/our-work/sustainability/cog3-cobalt-project.html




SHARING AND WIN-WIN WITH THE W0RLD – DEVELOPMENT STATUS AND PROSPECTS OF THE COBALT MARKET IN CHINA

刘磊：北京安泰科信息开发有限公司资深分析师

Ms Joy Kong

Analyst - Beijing Antaike Information Development Ltd. Co

This presentation will look at the Chinese market in respect of global raw material supply and refined output in China together with the consumption trends with regard to precursor material for Li-ion batteries and the Chinese battery and EV market trends. The presentation will also focus on the price differentials that are seen in the Chinese market compared to the rest of the World. There will also be an outlook for the cobalt market in China which considers the macroeconomic factors together with supply uncertainties

THE LME COBALT CONTRACT

Mr Hugo Brodie

Office of the CEO (Responsible Sourcing) - London Metal Exchange

The following important areas will be developed in the presentation from the LME:

Update on LME initiatives

• Overview of latest LME developments, including the LME’s new product suite





Update on LME Cobalt contracts

• Update on the new cash settled LME Cobalt contract, launched in March, including the contract specifications and strategic plan

• Intended future of Cobalt at the LME

Update on the LME responsible sourcing initiative

• Brief introduction on the LME’s responsible sourcing initiative and highlights of the feedback received, particularly in respect to cobalt

• The LME’s intended responsible sourcing plan of action • Opportunity for audience participants to give their feedback and ask their questions

COBALT AND THE RISE OF THE LITHIUM ION BATTERY MEGAFACTORIES

Mr Caspar Rawls

Analyst - Benchmark Mineral Intelligence

The lithium ion battery industry is entering a new era, with the market firmly focussed on the mass production of low cost EV’s - something only possible due to the build out of lithium ion battery megafactories. This talk will focus on what has been achieved since Benchmark began tracking these plants in 2014, what the future holds as we enter a world of the sub $100/kWh cell and the critical role cobalt plays in this newly electrified world.





SESSION 2 – THURSDAY 16 MAY

ESTABLISHING THE COBALT INDUSTRY RESPONSIBLE ASSESSMENT FRAMEWORK (CIRAF)

Ms Alice Valvodova

Head of Advisory, Knowledge and Training - RCS Global Group

In January this year the Cobalt Institute launched the Cobalt Industry Responsible Assessment Framework (CIRAF), a significant step for the Institute and its members. The CIRAF will provide a management framework for identifying and addressing risks in the cobalt supply chain and will enable participants to prove they are aligned with global good practice on responsible production and sourcing, including the OECD Due Diligence Guidance. Five months after launch, Alice Valvodova will explain the objectives and requirements of CIRAF, and outline progress achieved to date in terms of adoption.

SUSTAINABLE MINING

Mr Mark Hardin

Director of Environment and Sustainable Development - China Molybdenum Company

The Tenke Fungurume Mine (TFM), owned and operated by China Molybdenum Co. Ltd. (CMOC), exploits a large copper-cobalt resource located in the copper belt region of southeastern Democratic Republic of Congo (DRC). Exploiting surface oxide deposits, TFM produced approximately 170,000 mt copper as cathode and approximately 19,000 mt cobalt as hydroxide in 2018.

The mineral district in southeastern DRC has long attracted large numbers of artisanal-small scale miners (ASM), with estimates ranging as high as 150,000 operating in the former Katanga Province,





particularly in the Kolwezi-Likasi mining corridor where TFM is located. Despite government attempts to formalize the ASM sector, artisanal mining remains mostly unregulated, operating outside the legal framework established through the 2002 Mining Code. Largely because of its unregulated status, the

ASM-derived cobalt from the DRC has been the subject of well publicized analyses by Non-Governmental Organizations (NGOs) and equally broad coverage by western news agencies in recent years, with a focus on the electric battery supply chain. This external coverage has identified a suite of issues associated with the ASM product, notably child and other exploitative labor practices and poor safety conditions. Downstream consumers of minerals originating in the DRC have responded to this unfavorable exposure by aligning with a suite of voluntary compliance frameworks that originated in the conflict minerals and sustainable mining initiatives of the 2000s, with a focus on demonstrating sustainable, industrial production of cobalt.

Since inception TFM has recognized the challenges posed by the unauthorized ASM activity in its concession, as well as by the related issues of high population influx, unemployment and lack of services in the health and education sectors. Through risk-based analysis the company identified a set of material issues including safety, community relations and land acquisition, environmental stewardship, human rights and labor practices; and a corresponding set of industry good-practice frameworks to help manage these risks. Alignment with these frameworks is reported externally by CMOC and is subject to 3rd party assurance conducted at the site level. With the recent focus on cobalt from the DRC, CMOC has utilized its existing sustainability governance system in assertions to stakeholders that TFM’s product is derived in a sustainable manner. The Cobalt Institute CIRAF framework has offered CMOC a convenient and effective tool for further benchmarking of its good practice standards with those additional standards applied by customers, and for asserting material equivalency. Having worked with the Cobalt Institute in piloting the CIRAF program, TFM is progressing towards full implementation in 2019. CMOC incorporated the CIRAF framework into its external disclosures on product stewardship as part of its 2018 Environment, Social and Governance (ESG) report.





THE COMPLIANCE LANDSCAPE OF THE DOWNSTREAM CONSUMER

Mr Jared Connors

Senior Subject Matter Expert, Corporate Social Responsibility - Assent Compliance

Purpose of the presentation:

To paint a picture of the broader compliance landscape impacting the downstream consumers of cobalt products, to inform the refineries and producers of semi-finished materials why they get the requests for information that they do, and to prepare them for additional questions they may see in the future.

Abstract:

Global regulations governing sourcing practices and expectations for ethical behavior of companies increases each year — and as a result, so does the pressure on companies to demonstrate compliance in reporting. Often, this means downstream reporters create expectations for their upstream suppliers to openly share data.

This can impact companies several layers removed in the supply chain, including producers of raw materials. Without context, these upstream suppliers and raw materials producers often push back on such requests for information, either because expectations are unrealistic, irrelevant to the business, or unclear.

In this session, I’ll discuss the compliance requirements and market expectations affecting downstream users of cobalt materials, while relating this to impact on companies in attendance. I’ll touch on a wide variety of compliance and regulatory topics, from product compliance, to vendor management regulations, to corporate social responsibility expectations.

Jared will also tell the story of how responsible sourcing has come full circle back to cobalt, from before Section 1502 of the Dodd-Frank Act went into effect to market expectations in 2019.





SUSTAINABILITY SESSION

This session will commence with a keynote address from the Chair of the Board of the Cobalt Institute who will outline his vision for sustainability in the cobalt industry. Then there will be a series of topical presentations by speakers from the Global Battery Alliance of the World Economic Forum, the Commodities Branch of the UN Conference on Trade and Development, and the Responsible Battery Coalition. The final presentation will provide an overview of the sustainability projects and activities underway at the Cobalt Institute, with a focus on cobalt and the battery value chain. The session concludes with questions for the speakers, and opportunity to discuss suggestions on how to further develop the sustainability programme for cobalt.

VISION FOR SUSTAINABILITY IN THE COBALT INDUSTRY

Mr Guy Ethier

Umicore - Chair of CI Board

Sustainability at the center of the role of the Cobalt Institute

Professor Jonathon Porritt defines Sustainable Development as the capacity to continue into the future. The ability to continue into the future is triggered by an healthy economic growth generated from appropriate social policy, protection of health and safety and passion for the environment.

In order to deliver on the Paris agreement, transport technology and a low-carbon future are unthinkable without batteries, a core technological enabler of the Fourth Industrial Revolution. The lithium-ion battery market – the strongest growing battery market segment– increased by 15% (CAGR) between 2005 and 2015 and the global battery market is estimated to see continued growth from currently $65 billion to a size of $100 billion by 2025.

As a key component of the Lithium-ion batteries, cobalt has a prime role to play while facing sustainability challenges.

1) raw materials extraction can represent a toll that can include: child labour, health and safety hazards in informal work, poverty and environmental impact;

2) a challenge to address over the eleven million tonnes of spent batteries forecast to become available by 2030, with few systems in place to enable reuse and recycling in a circular economy;

3) significant innovation potential remains unexploited to ensure that promises for sustainable development are fulfilled.

Hence the Cobalt Institute has a prime role to support the industry in developing the necessary tools and practices to demonstrate cobalt’s contribution to sustainable development. It can be measured by contributing to delivering on the UN sustainable development goals.





COBALT: POWERING SUSTAINABLE DEVELOPMENT

Mr James Nicholson

Head of Corporate Responsibility, Trafigura Group - Global Battery Alliance

The World Economic Forum’s Global Battery Alliance (GBA) is a global public-private partnership and collaboration platform made up of some 40 member organizations. It seeks to establish a sustainable battery value chain to power the decarbonization of the world’s energy and transport systems. It does so by catalysing, connecting and scaling up initiatives to transform the value chain for batteries. Trafigura is one of its founding Members. Cobalt is one of the key materials necessary to produce batteries that power many consumer electronics. Batteries are a core technology enabling the transformative shift to decarbonize energy and transport systems. As one of the world’s leading traders of metals and minerals, Trafigura recognises the potential for adverse social or environmental impacts associated with their extraction, processing and sale. We are working together with the GBA and world-leading NGOs as part of our Responsible Sourcing Programme to meet the expectations of the global market by addressing social, environmental and governance risks while having a positive impact in local communities. In 2018, the Democratic Republic of Congo (DRC) accounted for over 64 percent of global cobalt production. Between 20% and 40% -of the cobalt mined in the DRC originates from the Artisanal and Small-scale Mining (ASM)1 sector. Often these miners are not in official employment, use basic tools, have no formal training and own limited safety equipment as they dig their own unsupported tunnels. Instances of child labour and other human rights abuses have also been reported. Even though their methods are simple, the economic impact of artisanal mining is immense.


https://www.weforum.org/global-battery-alliance/home

https://www.weforum.org/global-battery-alliance/our-members




Trafigura, in partnership with Pact2 is supporting Chemaf3 in managing social and environmental impacts across its operations at Mutoshi, a mine site near Kolwezi in the DRC. Trafigura and Pact are joining forces with the Global Battery Alliance in scaling up the best practices identified at Mutoshi to other sites and collaborating with other GBA Members in sharing experiences and addressing joint challenges in the implementation of responsible sourcing standards in the field. The outcomes of that collaboration will contribute to updating international frameworks such as CRAFT4 and constitute a piece of an structural and strategic joint effort by many actors along the supply chain and participating in the GBA to improve health and safety standards and general working conditions in the cobalt ASM sector in the DRC Copperbelt.

Footnotes: 1 Formal or informal mining operations with predominantly simplified forms of exploration, extraction, processing, and transportation. ASM is normally low capital intensive and uses high labour-intensive technology 2 Pact’s Mines to Markets program assists resource-dependent communities to gain lasting benefits from the more sustainable use of the natural resources around them. Pact takes a long term, integrated approach to its work in the mining sector, linking mining to livelihoods, governance, health, environment, and the strengthening of local, regional and national institutions. 3 Chemaf is a leading mineral exploration, mining and processing company in the Democratic Republic of the Congo. 4 CRAFT is the Code of Risk-mitigation for ASM engaging in Formal Trade, a tool aligned with OECD Due Diligence Guidance that makes it easier for buyers to apply due diligence in the sector, with a focus on a continuous development and improvement.

APPLYING THE AFRICA MINING VISION AND KPIS IN THE COBALT INDUSTRY Ms Claudine Sigam

Commodities Branch - United Nations Conference on Trade and Development (UNCTAD), Palais des Nations, Geneva Switzerland

Africa and the Democratic Republic of Congo (DRC) alone possess more than 50% of the global cobalt proven reserves. A mineral product at the heart of the 4th industrial revolution.

The Africa Mining Vision (AMV) is the continental framework to leverage the potential of mineral resources to achieve structural transformation of Africa economies and inclusive development. The forward-looking framework is a paradigm shift calling for a move away from commodity export

dependency and towards enhancing Africa’s industrial base through value addition and diversification. This will ensure that mining these finite resources can contribute to economic development and potentially transform the demographic endowment into a dividend.

Related to the AMV framework are relevant indicators to monitor and measure the performance of the cobalt industry. At the same time, these Key Performance Indicators (KPIs) should provide room to track, assess, support and provide feedback on the degree to which a producing country such as


http://www.pactworld.org/mines-markets

http://www.chemaf.com/

https://www.trafigura.com/video/responsible-sourcing-facing-up-to-the-challen/22848

http://www.responsiblemines.org/en/our-work/standards-and-certification/craft/

https://www.weforum.org/global-battery-alliance/action

https://www.weforum.org/global-battery-alliance/action

http://www.chemaf.com/




DRC is moving up the value chain, acquiring the needed technology and knowledge to address climate change, and facilitating the development of evolving and transferable skills, with the view to achieve the sustainable development goals and the Africa Union Agenda 2063.

The wide range of applications derived from Cobalt is due to technology progress which has played and continues to play a major role in the prosperity of companies in the industrialized world. These technology advances must also have the same impacts in developing countries. Irrespective of whether the companies are industrial, service, energy or mining, AMV recommends to include in the KPIs their contribution to technology and knowledge transfer through training, skills development and employment of the indigenous workforce, and preferential contracting of qualified local companies. This indicator should be measured and monitored during all phases of the project life cycle and throughout the life of the companies.

DEVELOPMENT OF GREEN PRINCIPLES AND KPIS FOR BEST PRACTICES IN THE BATTERY SUPPLY CHAIN

Mr John Kyte

Director of Communications and Programs - Responsible Battery Coalition (RBC)

The Responsible Battery Coalition is a group of companies, academics and organizations committed to the responsible management of the batteries of today and tomorrow. RBC was created in April 2017 to advance the responsible production, transport, sale, use, reuse, recycling and resource recovery of transportation, industrial and stationary batteries and other energy storage devices.

In examining the lifecycle implications of batteries – from minerals extraction through manufacturing, use, re-use and recycling – we focus on minimizing environmental impacts and maximizing battery utility and reliability throughout useful life. We already know that lead-acid batteries are well-suited to a circular economy approach to lifecycle.

As part of our efforts, we have worked with academic institutions to develop two important initiatives to help define, develop and demonstrate best practices for managing the lifecycle of the current and next generation of vehicle batteries:

• “Green Principles for Vehicle Energy Storage” that address the lifecycle emissions profile of electric and hybrid vehicle batteries. These principles identify methods to minimize GHG emissions from material extraction, battery use, reuse and recycling.

• Key Performance Indicators (KPIs) for Advanced Batteries that allow battery value chain members to ensure they are purchasing, manufacturing, using and selling products that meet necessary measurements and can be validated.

The Green Principles for mobile applications build on existing principles for stationary batteries and address applications, servicing and emissions, metrics and methods for assessment, and on-going challenges to making continuous environmental improvements.

The KPIs provide guidance by asking questions about mine certifications, the environmental health and safety programs of manufacturing facilities, etc. The intent is to encourage the people who buy





battery chemistries to ask questions about where materials are coming from, and how they are being mined and refined.

Given the rapid rate of growth in electric vehicles, and projections that EV growth will increase exponentially in the next decade, RBC believes these principles and KPIs are timely and relevant in helping create a truly circular economy for traditional and advanced battery manufacturing, use and recycling.

DEVELOPING THE SUSTAINABILITY PROGRAMME FOR COBALT

Ms Carol-lynne Pettit

REACH & Sustainability Manager - Cobalt Institute

Cobalt is identified as a Critical Raw Material (CRM) in the EU and as strategic elsewhere, based on concerns over security of supply and its’ requirement for important applications. The CI’s new tool CIRAF (Cobalt Industry Responsible Assessment Framework) provides a good practice-based framework that allows producers to identify and respond to core risks relating to Human Rights and for Community Engagement, and in due course, also the risks to the Environment and Occupational Health & Safety (OHS). The CI’s project on Responsible Sourcing (CIRAF) forms part of the overall sustainability programme for cobalt, and there are many other studies underway as well.

The CI’s aim is to promote the safe and sustainable production and use of cobalt in all its forms. To support this aim, we are looking to develop a sustainability profile for cobalt which highlights (quantifies and/or describes) the “sustainability attributes” of the cobalt substances used in many important applications, such as:

• Alloys & Magnets for transport, renewable energy (wind turbines) and decarbonisation; • Batteries & Electronics for communication, mobility (EVs / HEVs) and energy storage; • Catalysts for clean or eco-friendly fuels, and climate change; • Renewable Energy as a bio-essential nutrient for biogas production; and • Biotech & Medicine through the bioeconomy, promoting health and well-being.

As an important first step towards this objective, the CI conducted the first industry-led LCA (Life Cycle Assessment) study on cobalt production (2016) and is planning the next updates to the LCA study. The CI is also collating information about the use-volumes of cobalt substances, to support MFA (material flow analysis) studies and development of a SEA (socio-economic) model of the cobalt value chains in Europe, as a first step, and then globally as well.





The CI participates to several sustainability fora and projects, such as the EU Product Environmental Footprint (PEF) programme, pilot project on rechargeable batteries, where application of the new cobalt LCA data shows significant improvement in the environmental impact categories, and hence opportunity for improved product performance. Through participation to the EU Battery Alliance, we want to ensure the sustainable growth of European cobalt transformation and recycling operations, whilst also ensuring the most appropriate chemicals management of cobalt compounds along their lifecycle. The CI participates to the LSM (large scale mining) group of the Global Battery Alliance, which is interested in CIRAF and also addressing the artisanal mining issues in the DRC. And the CI is looking towards similar areas of collaboration with the Commodities Branch of the UN Conference on Trade and Development, and the Responsible Battery Coalition. Recently the CI has joined a new global project within the IEA HEV (Task 40 CRM4EV) which is looking specifically at “Critical Raw Materials for Electric Vehicles”. The CI also participates to the EU CRM Alliance and is preparing for the next review of the CRM methodology taking place this year in Europe.

In summary, this presentation will provide an overview of the CI’s studies (LCA, PEF, MFA, SEA, CRM, etc.) and activities and will illustrate how these tools and approaches can be applied to examine the sustainability performance of cobalt products, and the role of cobalt within new circular economy, with special focus on the growing applications for cobalt within the global battery value chain.

HEV TASK 40 CRM4EV Project Mr Bert Witkamp

Valuad

(To be briefly presented by Carol-lynne Pettit, Cobalt institute)

Only a few years ago, electric vehicles were perceived by most stakeholders as niche solutions at best. The high price of the vehicles and the limited range were too high barriers to make them a large-scale solution. This view has completely changed and electric vehicles, be it cars, buses or other applications, are now seen as the most important solution to reduce the carbon footprint of transport. Many countries have adapted ambitious targets at medium or long term, some striving for zero emission car fleets by 2040 or 2050.

This development is due to the rapid cost reduction of Lithium-ion batteries, improved battery lifetimes and the improved high-power charging infrastructure. With a ramp-up to mass deployment foreseen within the next decade, focus is now shifting to the raw materials needed for the





exponentially growing battery market and to the need to reduce the environmental impact of producing electric vehicles.

Within the IEA HEV, Task 40 CRM4EV “Critical Raw Materials for Electric Vehicles” has been defined which will review these aspects. The current and potential future needs for the battery materials like Nickel, Cobalt, Lithium, Graphite and perhaps others will be determined. As there are many factors, like the quantity of material per car, the battery chemistry used and even the number of cars, which may change in time. For Cobalt for instance, the battery chemistry is changing rapidly which may reduce the amount per kWh needed with a factor of 3 while the number of electric cars in 2025, 2030, 2050 may vary from one scenario to another with a factor of 10. In this uncertain demand situation and given the challenge and time needed to adjust supply to demand it is extremely important to have the best possible insights in the both the demand and the technology developments.

Task 40 CRM4EV also has as objective to inform stakeholders with reliable, up-to-date and relevant data where now often unsubstantiated claims of shortages, environmental impacts and the like are being “reported”.


THE COBALT CONFERENCE 2019, HONG KONG, 15 -16 MAY...The Cobalt Institute (CI) is a global industry...

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Transcript of THE COBALT CONFERENCE 2019, HONG KONG, 15 -16 MAY...The Cobalt Institute (CI) is a global industry...