Commodities at a Glance Report | UNCTAD | UPSC
Rechargeable batteries: UNCTAD report warns of raw material uncertainties
WHY IN NEWS:
A few countries control reserves of key inputs like cobalt, manganese, lithium, graphite
SYLLABUS COVERED: GS 3:Reports and Indices
For PRELIMS remember the key points like Publishers , Resources , Mining activity and of course the title of the report . Make a note in your Prelims book.
For MAINS points mentioned below will act like a catalyst in your answers relevant to renewable energy resources.
The production of raw materials used to make electric car batteries are usually concentrated in a few countries.
COMMODITIES AT A GLANCE REPORT
Commodities at a glance: Special issue on strategic battery and minerals
- CONCERNS : The report raises concerns for facilitating research into battery technologies that depended less on critical raw materials and had potential to provide higher energy density.
- MONITORING : It also suggested chalking out a strategy that would allow for dynamic monitoring of the raw material cycles, from mining through processing, refining, and manufacturing to recycling.
- RISK ASSESSMENT : It would also enable development of mitigation strategies at either company or national level.
- DEMAND GROWTH : As electric vehicles (EVs) have gradually been integrated into global transportation, there has been a rapid growth in demand for rechargeable batteries.
- MINING CONCENTRATION : Over 60 per cent of the world’s cobalt is mined in the Democratic Republic of the Congo while over 75 per cent of global lithium is mined in Australia and Chile.
- DISRUPTION IN MARKETS : Any disruption to supply might lead to tighter markets, higher prices and increased costs of rechargeable batteries.
- The demand of raw materials used to manufacture rechargeable batteries will grow rapidly as other sources of energy lose their sheen.
- Alternative sources of energy such as electric batteries will become even more important as investors grow more wary of the future of the oil industry.
SOURCES:DownToEarth | Commodities at a Glance Report | UNCTAD | UPSC