Commodities at a Glance Report

HEADLINES:

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

LEARNING:

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.

ISSUE:

The supply of raw materials to produce rechargeable batteries -crucial to move to cleaner energy is uncertain, a recent report by the United Nations Conference on Trade and Development (UNCTAD)

The production of raw materials used to make electric car batteries are usually concentrated in a few countries.

TITLE

Commodities at a glance: Special issue on strategic battery and minerals

PUBLISHED BY

United Nations Conference on Trade and Development (UNCTAD)

REPORT ANALYSIS

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.

Lithium, natural graphite and manganese as critical raw materials for the manufacture of rechargeable batteries.

DEMAND GROWTH : As electric vehicles (EVs) have gradually been integrated into global transportation, there has been a rapid growth in demand for rechargeable batteries.

The security of supplies should be a concern for all stakeholders because the production of the raw materials is concentrated in a few countries.

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.

IASbhai WINDUP:

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

DISCOVER MORE : Important Reports for Prelims 2020

If you liked this article, then please subscribe to our YouTube Channel for Daily Current Affairs , Editorial Analysis & Answer writing video tutorials. You can also find us on Twitter and Facebook.