Latest news with #ArcadiumLithium
Business Times
2 days ago
- Automotive
- Business Times
Producing lithium is slow and dirty. Is there a fix?
A SUBSTANCE seen as critical to the green energy revolution, lithium, is at risk of a future supply crunch. Even though a recent surplus of the metal has been crashing prices, demand for lithium is set to grow by almost nine times over the next 15 years in a scenario where the world meets the Paris Agreement goals for limiting global warming, according to estimates from the International Energy Agency. Extracting lithium from the rocks and salt water where it is found can be a slow process that often harms the environment. So a race is on to develop more efficient, less damaging production methods. One promising area of innovation is direct lithium extraction (DLE), which can slash the time it takes to remove the metal from brine from as long as 18 months to a matter of days, or even hours. DLE remains an uncertain technology, with daunting technical challenges to be overcome before it can be rolled out at scale. Still, its importance to lithium's future was underscored in October, when mining giant Rio Tinto unveiled a planned US$6.7 billion takeover of Arcadium Lithium, a company's that's been deploying DLE technology in Argentina. A NEWSLETTER FOR YOU Friday, 12.30 pm ESG Insights An exclusive weekly report on the latest environmental, social and governance issues. Sign Up Sign Up Why is lithium so important? Lithium is a key ingredient in the batteries that power electric vehicles and store the energy generated by wind farms and solar panels. The low mass and radius of lithium atoms ensure that lithium-ion batteries can quickly absorb and store more electricity than other batteries of the same weight. The weight aspect is crucial when it comes to electric vehicles (EVs) as a lighter car will travel further on the same charge. The anticipated surge in demand raises the risk of future supply bottlenecks that could inflate prices of lithium and potentially slow the global shift to EVs. Hence the search for more efficient extraction methods that could open up new, commercially-viable sources of the metal. What are the traditional ways of producing lithium? Lithium is a soft, silvery-white metal in its pure form, extracted either from rocks or from lakes of salt water that are common in elevated expanses within mountainous regions – mostly in Latin America or in the west of China. It needs to be processed further into a fine powder – usually lithium carbonate or hydroxide – before it's added to batteries. Extracting lithium from rock requires several stages of processing to remove unwanted materials and get at the mineral. These include a technique known as leaching, in which the ore is bathed in sulphuric acid to extract the lithium and convert it into a salt form. In the second method, brine found on the Earth's surface or sucked up from underground is pumped into a series of ponds. The lithium concentration of the solution increases as the water evaporates under sunlight. Large amounts of fresh water are used to process the raw material. What are the problems with lithium mining? These techniques are time consuming and energy intensive, limiting the number of lithium reserves that are commercially viable. What's more, the damage often caused to the environment is tarnishing the green image that's an important selling point for electric vehicles. EVs are supposed to lower the world's carbon-dioxide emissions. But mining spodumene, a primary source of lithium, is an energy-intensive process that's often powered by carbon-spewing fossil fuels. And there's the risk that the sulphuric acid will leak into the local water system, posing a threat to wildlife. What is DLE? DLE uses new approaches to recover lithium from brine using industrial equipment rather than via the long, slow process of evaporation. Some, for example, use lithium-attracting beads. Others employ membranes that selectively filter the metal. Startups have pursued DLE for years, but the technology has only recently matured to a point at which it can potentially compete with existing methods. Why is DLE so hard? There are still uncertainties surrounding the technology. Recovery rates of lithium can be low with DLE, and capital costs are high. Every source of brine is different, and that unique composition usually requires modifications in the process. The fact that each DLE project requires site-specific adjustments adds to the complexity and cost. BLOOMBERG
Yahoo
4 days ago
- Automotive
- Yahoo
5 Ways To Invest in the Tesla Ecosystem and Maximize Your Returns
Tesla has become one of the most recognized names in the electric vehicle (EV) industry, but its reach goes far beyond just cars. The company relies on a vast network of suppliers and partners to build its vehicles, energy products, and battery systems. Investing in Tesla stock is one option, but there are other ways to benefit from the company's rapid growth and innovation. Discover More: Read Next: Looking into the companies that supply Tesla with key components and raw materials, there are opportunities for investors to diversify their portfolios, tapping into the broader EV ecosystem. These suppliers often offer unique opportunities for growth, sometimes with less volatility than Tesla's own stock. Here are five ways to invest in the Tesla ecosystem and maximize your returns, focusing on companies that play a crucial role in Tesla's supply chain. Lithium is a critical component in the batteries that power Tesla's electric vehicles and energy storage products. Several major lithium producers have signed supply contracts with Tesla, making them attractive options for investors. According to Nasdaq, Ganfeng Lithium powers Tesla's vehicles and energy storage products, making lithium producers central to the company's success. Arcadium Lithium, which is set to be acquired by Rio Tinto, also has supply deals with Tesla, offering another route for exposure to the lithium market. Liontown Resources started shipping lithium spodumene concentrate to Tesla in 2024, and Piedmont Lithium supplies spodumene concentrate from its North American operation. These companies are directly tied to Tesla's battery production, and as demand for electric vehicles increases, their growth prospects look strong. Check Out: Tesla's battery technology is central to its success. According to Investing News Network, the company still relies on several major battery manufacturers to meet its needs. Panasonic has been a longtime partner, co-owning and operating the Nevada Gigafactory with Tesla, and continues to supply battery cells for Tesla's vehicles. LG Energy Solutions, the world's second-largest battery supplier, also provides cells containing nickel and cobalt for Tesla's cars. Since 2020, CATL has supplied lithium iron phosphate (LFP) batteries for Tesla's Shanghai facility, covering 80% of China's battery energy storage system manufacturing. BYD, another Chinese battery giant, is supplying Tesla with its Blade battery for some models in Europe and is also involved in energy storage projects. Investing in these battery makers allows investors to benefit from the global shift toward electric vehicles and renewable energy. Tesla's supply chain includes companies that provide essential industrial products, machinery and specialty materials. Emerson Electric and Danaher Corporation are two large-cap companies that supply industrial products and automation solutions used in Tesla's manufacturing process. Nucor Corp, a major steel producer, supplies steel for Tesla's vehicles and Gigafactories, making it a key partner in Tesla's expansion plans. These companies benefit from Tesla's growth but also serve a wide range of industries, which can help reduce risk for investors. As Tesla continues to scale up production and build new factories, demand for industrial automation, steel and specialty materials is likely to increase, supporting the growth of these suppliers. Beyond lithium, Tesla's batteries require other important raw materials like nickel and cobalt. BHP, an Australian mining company, supplies nickel to Tesla, which is essential for high-energy-density battery cells. According to SME Mining Engineering, an Anglo-Swiss mining company known as Glencore, also provides cobalt to Tesla. These companies are not only significant suppliers to Tesla but also have diversified operations in other metals and minerals, offering stability and growth potential. As the electric vehicle market expands, demand for nickel and cobalt is expected to rise, potentially boosting the fortunes of these mining giants. Investors interested in commodities can gain exposure to the EV revolution by considering these suppliers. While established suppliers offer stability, some smaller or emerging companies in Tesla's ecosystem present higher risk but also higher potential rewards. Modine Manufacturing supplies battery chillers for Tesla's vehicles, a niche but important component in electric vehicle performance. Rohm and Haas Company provides specialty materials used in Tesla's battery and vehicle manufacturing. Sichuan Yahua Industrial Group, a Chinese chemical company, has a long-term agreement to supply battery-grade lithium hydroxide and carbonate to Tesla through 2030. These companies may not have the same scale as the giants, but they are closely tied to Tesla's innovation and expansion. Investors seeking growth opportunities might consider these riskier suppliers, keeping in mind the potential for both higher returns and increased volatility. More From GOBankingRates These Cars May Seem Expensive, but They Rarely Need Repairs This article originally appeared on 5 Ways To Invest in the Tesla Ecosystem and Maximize Your Returns Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
22-05-2025
- Business
- Globe and Mail
Rio Tinto CEO Jakob Stausholm to step down later this year in surprise move
Rio Tinto RIO-N CEO Jakob Stausholm, who in his 4½ year tenure oversaw a big bet on lithium and a cultural overhaul at a firm strongly criticized for workplace toxicity, is to step down, the miner said on Thursday in a surprise to investors. In a statement to the market, the company said only that Stausholm will step down later this year once a succession process, already under way, concludes. It gave no further details. The world's largest iron ore miner named Stausholm as its top boss in late 2020 while grappling with legal, public and investor angst over the destruction of Australia's ancient Juukan Gorge rock shelters, which led to the ousting of its former CEO. One of Stausholm's early moves was commissioning a report on workplace culture at the firm, which in 2022 outlined widespread incidents of bullying, harassment and racism. During his tenure the group also pledged a strong pivot towards addressing climate change, committing to achieving an 'impeccable ESG' performance. 'This news comes as a big surprise, and in our view was not expected,' Berenberg analyst Richard Hatch said. 'No clear reason for his departure has been given by the company other than to state that now is 'a natural moment' to appoint a successor – but it does not feel that natural to us.' Under Stausholm Rio has taken a big bet on battery metal lithium, with its Rincon project in Argentina, $6.7-billion acquisition of U.S.-based Arcadium Lithium and $900-million investment in Codelco's Maricunga lithium project. 'We had expected Mr Stausholm to remain with the company and drive the integration of the lithium business, so his exit comes as a surprise,' Hatch said. Stausholm – one of a number of candidates considered for the role in 2020, including BAE Systems CEO Charles Woodburn and Newmont boss and former Rio executive Tom Palmer – will continue at the helm until a new CEO is appointed. Internal contenders are expected to include Chief Commercial Officer Bold Baatar, head of iron ore Simon Trott and aluminum boss Jerome Pecresse. Investors said they expected Rio to mount an external search, but it may have to compete for candidates with BHP , whose CEO Mike Henry is widely expected to step down in the next year. 'He's done a good job on the soft issues,' said analyst Glyn Lawcock at Barrenjoey in Sydney, including repairing relationships after Juukan Gorge and advancing the company's Oyu Tolgoi copper project in Mongolia. Under Stausholm's tenure, Rio Tinto's London share price fell around 15 per cent, despite reaching an all-time high in 2024, while total shareholder returns stood at 30 per cent on earnings. The Australian share price rose 6.5 per cent over the period. 'Jakob has stabilized the company and has built up a very good internal team, he's reset the culture and he's got the company on a growth path with the lithium acquisitions. So he's going at a pretty good time, and Rio can now have an orderly succession,' George Cheveley, portfolio manager at Rio shareholder Ninety One, said. But there has also been controversy. Sources and documents seen by Reuters showed earlier this year that accidents at the company's giant Simandou iron ore project in West Africa had killed more than a dozen workers between June 2023 and November 2024. Stausholm had also faced a push by activist investor Palliser Capital and more than 100 other shareholders to review its model of listing in both London and Sydney, a campaign rejected by shareholders in May.
Daily Mail
22-05-2025
- Business
- Daily Mail
Investors surprised as Rio Tinto reveals boss will step down after just four years
The chief executive of Rio Tinto will step down by the end of this year, the mining giant announced on Thursday. 'Four years isn't very long at the wheel of a FTSE 100 company, so it's a surprise to see Rio Tinto announce the forthcoming departure of chief executive Jakob Stausholm', Russ Mould, investment director at AJ Bell, said. No reason was provided by the company for Strausholm's upcoming exit. Rio Tinto named Stausholm as its chief executive in 2021 while grappling with legal, public and investor turmoil over the destruction of the 46,000-year-old Juukan Gorge rock shelters. On Thursday, the business said Stausholm would step down later this year once a successor was appointed. A selection process for the role is underway. Contenders for the top job are expected to include current chief commercial officer Bold Baatar, head of iron ore Simon Trott, and aluminium boss Jerome Pecresse. Some investors said they expected Rio Tinto to mount a robust external search given limited bench strength internally. However, the company's top brass may have to compete for external candidates with BHP, whose chief executive Mike Henry is widely expected to step down this year. Stausholm took over as chief executive of Rio Tinto from Jean-Sebastien Jacques, who was ousted as a result of the firm's handling of the Juukan Gorge saga. Under Stausholm, Rio Tinto make a significant push into lithium production, including the multi-billion-pound acquisition of Arcadium Lithium last year. This week, Rio Tinto doubled down on its lithium bet this week, announcing that it will partner with Chile's Codelco for its Maricunga lithium project with a £670million investment. During his tenure, Stausholm was also credited with repairing key stakeholder relationships, advancing major projects including Oyu Tolgoi in Mongolia, and restoring ties with China's Chinalco. Before getting the top job at Rio Tinto, Stausholm previously served as the firm's finance chief and a member of the board of advisors at IBM, and held senior positions at shipping company A.P. Moller - Maersk. Rio Tinto Chair Dominic Barton said: 'Under Jakob's leadership, Rio Tinto has restored trust with key stakeholders, aligned our portfolio with the commodities where demand growth is strongest, built a diverse and talented management team, and set a compelling growth trajectory. 'Our focus on these things is undiminished and our strategic priorities are unchanged.' Stausholm said: 'It has been an absolute privilege to lead Rio Tinto, one of the great mining and materials companies in the world. 'I would like to thank the deeply dedicated and talented people across the organisation that together have raised both operational performance and project execution. 'We have built on Rio Tinto's historic strengths to deliver profitable, stable growth and significant shareholder value. I know the company will continue to thrive long into the future.' Mould of AJ Bell, said: 'During Stausholm's tenure, arch-rival BHP tried to buy Anglo American and that raised questions as to why Rio Tinto wasn't also doing big deals. 'Earlier this year, there was speculation that Rio held merger talks with Glencore but nothing came of it. Rio's board might have felt that Stausholm was too conservative with his strategy and now is the time to be bold and grab market share. 'All we've had is a $6.7billion takeover of a lithium company which is small fry in the bigger scheme of things. 'It feels inevitable that Rio will recruit a dealmaker as its next CEO, rather than a company fixer. 'Rio is running smoothly but its position as a listed business means success will also be judged on its share price performance. 'That needs to be fired up, and M&A is the way for Rio to show it is the king of the miners given the industry follows the mantra of "biggest is best".'
Yahoo
13-03-2025
- Business
- Yahoo
Rio Tinto to raise $9 billion in debt for Arcadium Lithium buyout
(Reuters) -The world's biggest iron ore producer Rio Tinto will raise $9 billion in U.S. investment-grade bonds as it seeks to fund its recently-closed buyout of Arcadium Lithium, the miner said on Wednesday. Rio is offering the fixed and floating rate debt in eight tranches with terms varying from two years to 40 years. The Anglo-Australian mining giant last week completed its $6.7 billion acquisition of the U.S.-based Arcadium Lithium, as it looks to diversify away from iron ore towards critical minerals and battery metals such as lithium. The miner intends to use proceeds from the bond offer for general corporate purposes, including repaying a bridge loan that it had incurred to fund its buyout of Arcadium. The bond offer was reported by Bloomberg News late on Tuesday. Bloomberg News reported last week that Rio had dropped plans to raise as much as $5 billion in a share sale following pushback from investors. Sign in to access your portfolio
