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H. Hao and X. Sun
The recovery of nickel is relatively high as it is already a mature market. In 2019,
secondary production accounted for 47% of the global total nickel supply (Mineral
commodity summaries 2020). A notable event in this regard is the resumption of
ban on direct transport of nickel ores by the Indonesian government starting January
2020, two years earlier than previously announced, in order to retain raw ores for
domestic processing industry and shore up domestic refining and manufacturing
industries. This policy might exert considerable impact on the supply and demand
of the resource, as Indonesia is the world’s biggest supplier of nickel ore.
The supply of manganese is similar with nickel with relatively dispersed reserves
and production. In 2019, the global manganese reserves totaled 810 million tons,
mostly in South Africa (260 million tons), Brazil (140 million tons), Ukraine
(140 million tons) and Australia (100 million tons). In the same year, the world
produced 19 million tons of manganese, mostly from South Africa (5.5 million tons),
Australia (3.2 million tons), Gabon (2.4 million tons), Ghana (1.4 million tons), China
(1.3 million tons), Brazil (1.2 million tons) and India (1 million tons). The static RP
ratio of manganese is approximately 40 years, which, like nickel, remains stable over
a long period of time (Mineral commodity summaries 2020).
Compared to lithium, cobalt and nickel, the market stays in smooth water for
manganese with rare fluctuations in output and prices. The biggest potential risk,
however, comes from the very fragile recovery system as there is by far no processing
facility dedicated to manganese recycling. Currently, manganese is only recovered
as an appendage of steel and reused in the steel industry with discarded and recycled
steel. With little flexibility of the recycling system, the high recovery rate in the
steelmaking industry tends to fall short of possible surge in demand in other areas of
consumption (Sun et al. 2020).
6.1.3.2 Resources Consumption
The final consumption structure of four critical metal resources are illustrated in
Fig. 6.4. Details are as follows.
The global final consumption mix of lithium in 2019 is as follows: battery: 65%;
ceramics and glass: 18%; lithium-based lubricating grease: 5%; polymer production: 3%; continuous casting mold flux powders: 3%; air treatment: 1%; others: 5%
(Mineral commodity summaries 2020). In recent years, the lithium consumption
in battery has soared, as consumer electronics, electric tools, EVs and power grid
has increasingly adopted lithium battery for energy storage, a stark contrast to the
year 2015 when lithium consumed in battery only made up about 30% of its total
consumption (Sun et al. 2017).
The battery industry features a growing share in global cobalt consumption each
year. In 2018, battery industry comprised 60% of the global use of cobalt, followed
by superalloy (15%). Breakdown by country, China is the biggest consumer of cobalt
where over 80% is used in battery.
In final consumption, nickel is principally used in stainless steel (69%), alloy
(17%) and electroplating (6%) industries. Battery, at only 3% (Nickel institute, about
H. Hao and X. Sun
The recovery of nickel is relatively high as it is already a mature market. In 2019,
secondary production accounted for 47% of the global total nickel supply (Mineral
commodity summaries 2020). A notable event in this regard is the resumption of
ban on direct transport of nickel ores by the Indonesian government starting January
2020, two years earlier than previously announced, in order to retain raw ores for
domestic processing industry and shore up domestic refining and manufacturing
industries. This policy might exert considerable impact on the supply and demand
of the resource, as Indonesia is the world’s biggest supplier of nickel ore.
The supply of manganese is similar with nickel with relatively dispersed reserves
and production. In 2019, the global manganese reserves totaled 810 million tons,
mostly in South Africa (260 million tons), Brazil (140 million tons), Ukraine
(140 million tons) and Australia (100 million tons). In the same year, the world
produced 19 million tons of manganese, mostly from South Africa (5.5 million tons),
Australia (3.2 million tons), Gabon (2.4 million tons), Ghana (1.4 million tons), China
(1.3 million tons), Brazil (1.2 million tons) and India (1 million tons). The static RP
ratio of manganese is approximately 40 years, which, like nickel, remains stable over
a long period of time (Mineral commodity summaries 2020).
Compared to lithium, cobalt and nickel, the market stays in smooth water for
manganese with rare fluctuations in output and prices. The biggest potential risk,
however, comes from the very fragile recovery system as there is by far no processing
facility dedicated to manganese recycling. Currently, manganese is only recovered
as an appendage of steel and reused in the steel industry with discarded and recycled
steel. With little flexibility of the recycling system, the high recovery rate in the
steelmaking industry tends to fall short of possible surge in demand in other areas of
consumption (Sun et al. 2020).
6.1.3.2 Resources Consumption
The final consumption structure of four critical metal resources are illustrated in
Fig. 6.4. Details are as follows.
The global final consumption mix of lithium in 2019 is as follows: battery: 65%;
ceramics and glass: 18%; lithium-based lubricating grease: 5%; polymer production: 3%; continuous casting mold flux powders: 3%; air treatment: 1%; others: 5%
(Mineral commodity summaries 2020). In recent years, the lithium consumption
in battery has soared, as consumer electronics, electric tools, EVs and power grid
has increasingly adopted lithium battery for energy storage, a stark contrast to the
year 2015 when lithium consumed in battery only made up about 30% of its total
consumption (Sun et al. 2017).
The battery industry features a growing share in global cobalt consumption each
year. In 2018, battery industry comprised 60% of the global use of cobalt, followed
by superalloy (15%). Breakdown by country, China is the biggest consumer of cobalt
where over 80% is used in battery.
In final consumption, nickel is principally used in stainless steel (69%), alloy
(17%) and electroplating (6%) industries. Battery, at only 3% (Nickel institute, about