Energy Transition 101

What are Critical Minerals?

The Canadian and United States governments have signed a Joint Action Plan on Critical Mineral Collaboration to enable greater North American production of minerals identified as critical to economic and national security.

Canada is primed to capitalize on the rising global demand for critical minerals, driven in large part by their role in the transition to a low-carbon and digitized economy. Essential for renewable and clean technology applications (batteries, permanent magnets, solar panels and wind turbines), they are also required inputs for advance manufacturing supply chains including defense and security technologies, consumer electronics, agriculture, medical applications and critical infrastructure.

Examples of Canada’s list of critical minerals include: Cobalt, Manganese, Nickel, Vanadium, Zinc and Uranium.

 

What are Energy Transition Metals?

Energy transition refers to the global sector shift from fossil-based systems of energy production and consumption (including oil, natural gas, and coal) to renewable sources like wind, solar as well as lithium-ion batteries. The increasing penetration of renewable energy into the energy supply mix, the onset of electrification and improvements in energy storage all all key drivers of energy transition.

Energy transition will continue to increase in importance as investors prioritize environmental, social and government (ESG) factors. To support this shift, metals such as copper, cobalt, lithium, nickel, manganese, PGEs, silver and other commodities will continue to be in strong demand.

Energy Transition Metals Significance

StrategX’s Elements Top 10:

    • Importance of Cobalt

    Cobalt has been a popular choice for batteries because the metal increases battery life and energy density, which in the case of EVs mean range, by keeping the battery structure as stable as the battery is continuously charged and discharged.1

    • Other uses:

      • It is alloyed with aluminum and nickel to make powerful magnets

      • Jet turbines and gas turbine generators, where high-temperature strength is important

      • Cobalt is used in electroplating because of its attractive appearance, hardness and resistance to corrosion

      • Cobalt-60 is a radioactive istotope; it is an important source of gamma-rays widely used in cancer treatment in as a tracer for radiotherapy

    • Value of Cobalt

      • Current price of cobalt is: (USD/T) 34,180.002

    • Importance of Nickel

    Nickel plays a huge part in the circular economy because it is recyclable. It can be repurposed again and again without losing its quality, meaning the nickel recycling industry can complement primary production.

    • Other uses:

      • Rechargeable nickel-cadmium batteries and nickel-metal hydride batteries used in electric and hybrid vehicles

      • Nickel resists corrosion and is used to plate other metals to protect them.

      • Making alloys such as stainless steel, boat propeller shafts and turbine blades

      • Nichrome is an alloy of nickel and chromium and is used in toasters and electric ovens

      • Currency – long history of being used in coins

    • Value of Nickel

      • Current price of nickel is: (USD/T) 22,788 3

    • Importance of Vanadium

    About 80% of the vanadium produced is used as a steel additive. Vanadium-steel alloys are very tough and are used for armour plate, axles, tools, piston rods and crankshafts. Less than 1% of vanadium, and as little chromium, makes steel shock resistant and vibration resistant.

    • Other uses:4

      • Batteries for EV and hybrid vehicles that allows to store more energy, more power can be charged faster

      • In Vanadium Redox Flow Batteries (VRFBs), vanadium is used to create reliable, safe and stable solution of renewable energy

      • Nuclear reactors because of its low neutron-absorbing properties

      • Vanadium oxide is used as pigment for ceramics and glass, and as catalyst in producing superconducting magnets

      • In the medical space, Vanadium is used to treat a number of ailments, including diabetes, heart disease and high cholesterol.

    • Value of Vanadium

      • Current price of vanadium pentoxide flake (V2O5) is US$9.90/lb; an 8-year high5

    • Importance of Copper

      Most copper is used in electrical equipment such as wiring and motors. This is because it conducts both heat and electricity very well and can be drawn into wires.

    • Other uses:

      • Building construction

      • Electrical and electronics

      • Transportation equipment

      • Consumer products

      • Machinery

    • Value of Copper

      • Current price of copper – (USD/lbs) 3.8792 6

    • Importance of Molybdenum

    Most molybdenum is used to make alloys. It used in steel alloys to increase strength, hardness, electrical conductivity and resistance to corrosion.

    • Other uses:

      • Engine parts, heating elements, drills and saw blades

      • Used as catalyst for the petroleum industry, inks for circuit boards, pigments and electrodes

    • Value of Molybdenum

      • Current price of Molybdenum – (USD/kg) 90.50 7

    • Importance of Zinc

    Zinc has a broad range of applications and can be used in everything from metal production to human health. Key component used to galvanize metals such as iron, to prevent rusting and corrosion. It has high heat tolerance and moderate conductivity for heat and electricity.

    • Other uses:

      • Use to produce die-castings which are important in the automobile, electrical and hardware industries

      • Used in alloys such as brass, nickel, silver and aluminum solder

      • Zinc is widely used in the manufacture of products such as paints, rubber, cosmetics, pharmaceuticals, plastics, inks, soaps, batteries, textiles and electrical component

    • Value of Zinc

      • Current price of Zinc is (USD/T) – 2,851.50 8

    • Importance of Silver

    Silver is one the most important elements on Earth, and one of the most useful metals in modern-day society. Silver’s immense electrical and thermal conducting properties are perfect for electrical uses. It is a precious metal because it is rare and valuable, and it resists corrosion and oxidation.

    • Other uses:

      • Jewelry & Silverware

      • Electrical & Electronics

      • Coins and medals

      • Photography

      • Solar panels, mirrors

      • Medicine – antimicrobial substance

    • Value of Silver

      • Current price of silver is (USD/t.oz) – 21.631 9

    • Importance of PGEs

    The PGEs are a family of six structurally and chemically similar elements that are most valued for their wide range of industrial, medical, and electronic applications. These versatile metals play a significant role in many of the products in everyday use.

    • Other uses:10

      • Several of the PGEs are used in jewelry (platinum, palladium)

      • PGEs are important catalysts in the petrochemical industry

      • Automotive industry uses platinum, palladium and rhodium in catalytic converters to treat exhaust emissions

      • PGEs metal alloys are used to make electrical contacts, electrodes, thermocouples and circuits

      • Iridium and platinum are used in medical implants and pacemakers

    • Value of PGEs (Palladium)

      • Current price of Palladium is (USD/oz) – 1,426.72 11

    • Importance of Manganese

    Manganese is in high demand because of its applications in steel, battery and electric vehicle production.

    • Other uses:

      • Manganese is a key component in making steel; it increases strength, improves workability and resistance to wear

      • Batteries for EV and Hybrid vehicles - batteries made from nickel, manganese and cobalt (NMC) offer lower raw material cost, a reduced charging time and longer lifespan

      • Solar panel production

      • Electricity grid storage

    • Value of Manganese

      • Current price of Manganese is (CNY/T) is 32.50 or in (CAD/T) 6.47

    • Importance of Uranium

    Uranium is a very important element because it provides nuclear fuel to generate electricity in nuclear power stations.

    • Other uses:

      • Use to produce isotopes for medical, industrial, and defense purposes

      • Used as coloring agents for ceramics

      • Used by military to power nuclear submarines and in nuclear weapons

    • Value of Uranium

      • Current price of Uranium is (USD/lbs) is 50.05 12