Australia's Critical Minerals Boom: Lithium, Rare Earths, and the Battery Supply Chain
There is an increasing need for renewable energy and electric vehicles. In fact, we can say there is a global “push” for both, which is certainly more beneficial for the environment. For example, even data centers hosting websites like Fortunica casino can operate much more efficiently thanks to renewable energy. However, this growing demand is also leading to unprecedented demand for critical minerals.
Australia is in a unique position in this regard: it has extremely rich reserves of lithium, rare earth elements, and other essential minerals. This could make it not just a “raw material supplier” but an emerging powerhouse in the battery and clean energy supply chain.
Many things actually fall under the category of critical minerals, but we can say that the most important ones are:
There are also critical minerals like manganese and graphite, but these are the most important, and without them, we cannot produce lithium-ion batteries. For the same reason, the demand for them has increased dramatically on a global scale. Currently, they are even more valuable than gold or diamonds, as they are essential for the operation of massive industries. A country can survive even without gold or diamonds, but if it lacks these critical minerals, its role in the global economy will be a "consumer" rather than a "producer."
Another difference between these three critical minerals and others is that they are only found in specific regions of the world. For example, the world's total lithium reserves are around 98 million tons, and 75% of this is located in the triangle formed by Chile, Argentina, and Bolivia. (This is why this region is also called the Lithium Triangle.) The leading countries for cobalt are the Republic of Congo and Indonesia. Nickel is mainly sourced from South Africa, Canada, and Russia. Australia could become a dominant player for all three minerals because:
The reason Australia has not been among the critical mineral producers until now is that its mining sector was not sufficiently developed. However, as global demand for these minerals increases, this situation is changing rapidly. Moreover, more than just mining is now being done.
Until now, Australia has primarily mined raw ore and exported it, meaning “processing” was not part of the mining industry. In this context, its largest customer was China: a large portion of the resources mined in Australia were exported to China for processing.
However, now both the mining industry is growing and processing is being done within the country. For example:
With its rich mineral resources and a mining industry now capable of refining them, Australia is ready to be a strong player in the global energy market. So, what could its role be in this market?
We can say that the global energy supply chain basically consists of three parts: mining – refining – battery production. After the last step, it mostly involves EV production, but as mentioned above, we can also include anything that uses lithium-ion batteries. In any case, if we were to evaluate Australia's role and position based on these steps:
Therefore, the best course of action for Australia may be to focus on developing the refining industry rather than wasting time investing in battery production. Keeping mining and refining within the country's borders could position Australia as one of the most important players in the global energy supply chain in the not-too-distant future.
