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EV Revolution

Let’s ditch fossil fuels and crude oil for a while, since some say that oil is considered environmentally unclean and unfit for burning.  So, what about electric?  Which of our earth’s finite resources are needed to make electric vehicles (EVs)?  It will be Tanzania, Venezuela, the Democratic Republic of Congo, Canada or even Brazil who could be the providing the rest of the world with precious raw metals that the greener EV requires.

As electric cars appear to be going mainstream and all our main automotive manufactures look to ditch internal combustion engines (ICEs) by 2025-ish, these big automotive giants have to source and make investments into electric cars and their necessary componentry.  Countries like South Africa, Tanzania, China and even Australia have very mineral-rich and rare metal resources.  These countries and their mining industries are the world’s best environmentally friendly strategy to power EVs and their mass production.

There is a global race on that is driving the demand for countries, including quite a few in Africa, to mine as much of their precious metal resources to equip the world with a greener fleet of vehicles.  This clambering for sourcing all the right stuff for EV production en masse could soon provide billions of dollars into certain countries’ GDP rates.

Rare metals like copper, lithium, cobalt and nickel are some of the most discussed metals in EV production demands.  Other metals like neodymium (a rare earth metal), aluminium and zinc have emerged as some other new resources that will be needed in the rapid quest for a greener world. Statista, a German company specializing in market and consumer data, estimates that the demand for metals such as nickel, aluminium, and iron (all the critical components in EVs) will jump to as much as 14 times the rate that it is now by 2030.  This huge demand for environmentally friendly EV minerals for meeting the green EV car revolution will provide a great cash injection for a well-endowed African state.  Demand for metals like lithium and graphite are also expected to rise substantially, even by as much as 9-10 times by 2030.

The large estimated increase (14x) in demand for the clean EV minerals to meet the intended global EV production rates over the next ten years is accompanied by the need for vehicle battery outputs and infrastructure, which are expected to rise by millions of times over in the very near future.  Even Toyota recently announced a 13.6 billion US investment into electric cars and hybrids, with some 9 billion US dollars to be spent on battery production alone.  This is fantastic news for the environment and carbon zero.

The increase in demand for these rare and hard to obtain metals is pushing top mining and big investment companies around the globe to invest in the acquisition of key materials used in the production of EV batteries, EVs themselves, and their much needed electrical infrastructure.  Solar energy componentry, as well as the EV requirements, all point towards an enormous boom in demand for these rare and hard to reach resources, as well as creating an opportunity to make even more money than the awful and “dirty” fossil fuel endeavours.

It is expected that the sales and production of EVs will continue to accelerate quickly over the next five years.  Big automotive giants who are changing to larger-scale EV production have major mining countries like South Africa, Namibia, the Democratic Republic of Congo (DRC), Tanzania, Zimbabwe and Botswana on their radar.  These are just some of the main African countries, let alone other countries around the world, who enjoy bountiful reserves of some of the world’s most precious metals and minerals: minerals such as gold, diamond, cobalt, iron ore, coal, and copper.  Meeting the demands by governing authorities and their growing appetite for better and greener EVs will be much better for the environment – and for special places like Africa, I’m sure.

President Hakainde Hichilema is the new president for Zambia, and he has recently announced plans to ramp up mining in particular, and to jump-start Zambia’s economy.  Part of his economic plan provides for the rapidly growing EV battery industry, with cobalt and copper identified as key components.  The workforce will be a great place for young men from the age of 15 years old, who will be able to work in the dangerous mining industry.  Countries like Zambia and Tanzania are working hard to supply the developed countries of the world with the rare metals. The developed countries are considered to have a higher status and economic standing, a better understanding of the environment, human ethics, health and emission standards.  Their demand for a green EV world is a good thing for all people and the environment.

As the big green machine, Tesla, and auto giant Toyota are joined by other larger EV-producing manufacturers, African mining countries are going to have to move faster than ever to meet the demand put on them by the governing authorities of the world and their ever-increasing and severe carbon emission goals and standards.  The president of Zambia, Mr. Hichilema, has wasted no time in announcing his administration’s hopes to quickly provide the clean EV battery supply chain and invest much of his country’s proceeds into its development.

Rare metals and their difficult and extensive underground extraction methods are needed in EV lithium ion battery technology and are critical for improving the driving range of electric vehicles so that they can compete with the best, most frugal, “archaic” ICE technology and emission-capturing methods. These rare metals are buried beneath the fields of African nations, ready to be harvested by economically sound, rich and developed countries with zero carbon emission goals and standards.

South Africa, a mining giant, has also announced plans to set up production plants to manufacture EVs of their own, including plants for the manufacture of EV components, such as EV batteries.  This could see South Africa as one of the multi-billion-dollar raw material producers of the world.  South Africa already has its raw material extraction industry, its capital markets, and its existing manufacturing and export infrastructure to build upon.

Environmentally friendly keywords that current governments, economists and greenies around the world are sharing with the public are words like carbon emissions, climate change, EVs, EV infrastructure, mining, metals, zero carbon, clean technology, investment and climate crisis.  All of these keywords correspond with the rising demand for the precious metals used in EV production.

As it stood in 2020, the total global nickel reserves amounted to approximately 94 million metric tons.  Of that amount, it was Indonesia that held the world’s largest share.  Following the tropical and beautiful Indonesia is Australia, with our nickel reserves estimated to be 20 million metric tons.  Best we get stuck in, then!

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