Battery Metals

Rare earth elements (REEs) are essential ingredients in contemporary electrical products such as smartphones, vehicles, and even military equipment. The quality of these products relies mainly on the concentration, types and purity of these elements. As a result, the supply and demand for REEs have become increasingly sensitive with the emergence of the US-China trade war.

Furthermore, these non-renewable resources have gained even more traction because of dynamic economic growth in the Asia-Pacific region, namely China, India, and Asean nations. Many high-tech industries that are underlying this growth are driven by the utilization of REEs. The market for REEs, dominated by China, represents a new dynamic in the geopolitics of the Asia-Pacific region, enhanced by the US-China trade war.

The term Rare earth elements could be considered a misnomer. Located mostly in the bottom second row of the periodic table, these REEs are known as lanthanides. Scandium and Yttrium are exceptions, because of their occurrence in the same ore deposits as the lanthanides, attributing them similar chemical properties. They have been prioritised as the “Vitamins of Modern Industries” and are indispensable and irreplaceable in electronic, metallurgic, magnetic, catalytic and technological areas.

Their unique silver colour, in combination with high lustre and electrical conductivity, make them very useful in the application of modern industries. The global supply chain of high-tech industries requires these elements, in order to improve the efficiency of their final products. Their exceptional functions are found in high-tech applications such as cancer treatment, rechargeable batteries, advanced ceramics, computers, watches, wind turbines, catalysts in cars and oil refineries, televisions, lighting, lasers, precision lenses, fibre optics, superconductors and glass polishing. Moreover, REEs are in demand for military equipment including jet engines, missile guidance systems, missile defence system and satellites.

Trade more volatile

The rising demand of these elements in the global market has caused international trade to become more volatile. The supply chain is susceptible because REEs are small and concentrated around a handful of suppliers, namely China, Australia, Malaysia, Myanmar, and Russia. There are four stages prior to its readiness for use in product development by factories. The stages consist of exploration, mining with legal commercial permission, processing and production by isolation of elements based on needs.

Competitive pricing and advanced processing technology in China put them at the forefront on an international scale. Furthermore, China’s vast reserve and production capacity increases global dependency on Chinese REEs, further strengthening their presence in international trade. The shift in monopoly of the REE market began in 1987 after Deng Xiaoping’s statement: “The Middle East has its oil. China has rare earths”. The Senkaku-Diaoyu island disputes between Japan and China in 2010 also affected the REE supply chain because of both nations’ involvement in the same market. Currently, the market share of REEs shows China controlling 90 percent of global exports, while 80 percent of US REEs imports are from China.

While the uncertain effects from the US-China trade war persist, the tariff by China on REE exports to the US remains an obstacle for high- tech product manufacturing. This tit-for-tat game between the two superpowers could push China to intervene in the supply chain of REEs. If this occurs, the potential consequences could be grave and would be felt by all actors involved.

However, the REE market could be counter-balanced by other nations by increasing local production, developing mine prospects according to price fluctuations and reusing, recycling, substituting alternative sources of the minerals, all backed by government policies. The effects on the REE market were evaluated by interlocked scenario analysis, described in the review paper published in 2018 by the Materials Research Society on “Rare Earths: A Review of the Landscapes”.

The possible change of China’s policy on REE supply could allow other countries to explore substitutes. Asean, however, has paid little attention to the discovery, processing technology and market segmentation of REEs, apart from a minor supply of the materials by Malaysia and Myanmar. Back in 2012, a Chinese company showed interest in building an REE plant in Laos but was rejected over environmental reasons.

Most of the Asean nations are in the emerging stage of their economies, requiring more electrical products that utilise REEs. However, they lack REE policies and specialised human resources. Japan has placed eyes on Kazakhstan and Vietnam, in addition to its own sources, while India has initiated exploration on its sea floors. The possible economic opening of North Korea could be another key factor because of its abundant source of REEs.

However, studies have shown that the aforementioned nations might face technological challenges in mineral processing, environmental impact, regulation and pricing. The best option for developed nations, based on these constraints, could be the recycling of REEs from waste. Probably, most nations will continue to depend heavily on China for sustaining the supply chain of REEs, unless policy actions are taken from both the demand and supply side.

Amorphous metals are highly elastic, hard, light and at the same time break-resistant. Thus they are ideal materials for high-tech applications. In additive manufacturing, these advantages can be used in a completely new way.

Whether in aerospace, medical technology or e-mobility: Modern high-tech applications place enormous demands on today’s materials, for example to produce wear-resistant drive components and gears, stable suspensions or membranes for injection nozzles. In complex designs and extremely light construction methods, conventional manufacturing processes quickly reach their limits. Additive manufacturing enables the production of tailor-made solutions that fulfil a huge number of new requirements.

Atomic Chaos as a Solution for Various High-Tech Applications

Amorphous metals are versatile and combine properties that have previously been mutually exclusive. This makes them extremely strong and highly elastic at the same time. In addition, they have very good spring properties, are extremely corrosion-resistant and shock-absorbing. The reason for this is their disordered, non-crystalline structure. The challenge in the production and processing of amorphous metals is the fact that the atoms in the melt retain their amorphous arrangement during solidification. These metals are therefore frozen melts, which are also referred to as metallic glasses. “The high strength of the material makes it possible to modify the design of components and make them thinner or smaller than is possible with standard materials,” explains Valeska Melde, Marketing & Sales Manager at Heraeus Amloy. An enormous advantage for heavy-duty parts that often wear out – such as gear parts.

A further advantage is the low density of amorphous metals, which is below that of steel. This reduces weight – one of the biggest challenges for innovations in e-mobility and aerospace. “Our developments in amorphous metals are a major driver for increasing ranges in e-mobility and reducing energy costs in the aerospace industry,” says Valeska Melde. In addition to their low weight, amorphous metals offer another decisive advantage for the aerospace industry: unlike other metals, they do not become brittle at extremely low temperatures (low temperature ductility) and are therefore particularly suitable for extreme environments. Thanks to their high creep resistance, amorphous metals can also be used to produce light, small and stable rotor elements, for example for drones.

High-Tech Material from the 3D Printer

In addition to the injection molding of amorphous metals, Heraeus also manufactures amorphous components by means of 3D printing . “Additive Manufacturing allows the production of larger components with complex geometries that could not be produced with conventional methods before,” explains Jürgen Wachter, head of the Heraeus Amloy business unit. High-purity, spherical, amorphous powders based on zirconium or copper are specially optimized for additive production in selective laser melting (SLM). Heraeus Amloy is currently working on the development of a titanium-based alloy that can also be used in additive production. The combination of very low weight with optimized component geometry is especially useful in lightweight design. A platinum-based alloy from Heraeus Amloy is of particular interest to the jewelry industry because, unlike pure platinum, it is scratch-resistant.

The powders for laser melting in additive manufacturing are produced by atomization in the EIGA (Electrode Induction Melting Inert Gas Atomization) or VIGA (Vacuum Inert Gas Atomization) process. These powders can be processed on all SLM machines. Heraeus Amloy determines the corresponding parameters for the respective customer and, together with partners, also optimizes the printers for amorphous components. Just like standard materials, amorphous components can also be reworked – depending on the desired surface structure or shape. The alloys can be ground, blasted, polished or machined.

Leaks and alleged insider information are regular occurrences in the mobile and tech industry and sometimes it might be difficult to separate the chaff from the wheat. There are some claims that sound so outlandish to be true but still end up surprising the public. The upcoming Huawei P40 won’t be that, however, at least as far as once rumored feature goes. Huawei itself officially shot down the speculation that its next flagship phone will have a revolutionary kind of battery.

Given its continued inability to access Google Play Services, Huawei may have to resort to pushing other features to convince users to buy into it. The company’s lead in the photography department may no longer be enough to pull consumers in, especially if its P30, which does have Google Play, is still better than the competition.

One rumor that surfaced earlier this month was that the Huawei P40 would have a graphene battery that is one of the dreams of smartphone manufacturers. It promised not just higher capacities in the same amount of physical space but, more importantly, more stable and less volatile energy sources, too. Given how current technology hasn’t caught up with that ideal yet, many called out the rumor for being wishful thinking.

It turns out, Huawei itself agrees. The Twitter post from Huawei France that started it all has been taken down and the company issued a semi-official statement that the information was just a rumor and not confirmation. That practically means one less thing to look forward to in the Huawei P40.

That won’t make the phone any less interesting if only for how it will address the elephant in the room. Huawei claims that Huawei Mobile Services, its Google Play replacement, will be ready before the year ends. How that will fare in the market, of course, is still debatable.

A Southcentral Alaska utility is working with electric car maker Tesla to install a large battery system aimed at replacing natural gas-fired power for short periods and cutting greenhouse gas emissions.

Homer Electric Association announced the contract with California-based Tesla this month. The Kenai Peninsula cooperative said it will use the company’s industrial batteries, which can quickly release stored power into grids.

The batteries will be installed at the utility’s power plant in Soldotna, in what’s known as a battery energy storage system, or BESS. They should begin operating in fall 2021.

The battery system’s power can be delivered to the grid at a rate of 46.5 megawatts an hour. The system can operate at that rate for two hours before it must be recharged, said Brad Janorschke, the utility’s general manager.

“At night, there are times when that battery could serve all our members for up to two hours,” Janorschke said.

Homer Electric’s service area covers the western Kenai Peninsula and includes 34,000 electric meters and 24,000 member-owners.

The battery system will increase the utility’s ability to provide power without disruptions, said Janorschke.

The utility gets most of its power from plants on the Kenai Peninsula, including renewable energy from the Bradley Lake Hydroelectric Project. But power from Anchorage provides a critical backup to prevent blackouts if a local power plant temporarily goes down, he said.

That link is broken for a total of about one month per year, on average, usually for maintenance of power lines.

Sometimes the disconnect lasts longer. This year, the Swan Lake Fire that damaged power lines contributed to several additional months of disruption to backup power.

The battery system will be another backup source of energy, but it will be available year-round, he said. Its power can be put into the grid more quickly and efficiently than power from a gas-fired turbine.

“It’s almost instantaneous,” Janorschke said.

It can be recharged when the utility is producing power at its most efficient levels.

“It will save significant dollars in fuel every year,” he said. “As gas prices escalate those savings will keep going up.”

Janorschke said the utility is not yet disclosing the cost of the battery system. The utility plans to pay for the system using debt financing and financial reserves. Debt financing often involves entities issuing bonds to raise money from investors.

Homer Electric Association isn’t the first Alaska utility to implement this idea. Golden Valley Electric Association in Fairbanks installed a large battery storage system in 2003. It helped reduce power outages and has provided “some significant economic benefits as well,” said Dan Bishop, the engineering manager for that utility.

Homer Electric’s batteries will employ new technology that will allow the utility to more effectively incorporate renewable power, such as from wind or solar, he said. The new technology also allows for more frequent use of the batteries.

“Ours operates 50 to 80 times a year, typically,” Bishop said of the Fairbanks system. “Theirs will be able to operate perhaps daily.”

Tesla’s media department did not return an email seeking comment.

Janorschke said Idaho-based POWER Engineers will handle site design. Tesla is also providing technicians to support the installation.

China listed its first non-ferrous metals exchange traded fund (ETF) on the Shenzhen Stock Exchange on Tuesday, according to a statement from the Shanghai Futures Exchange (ShFE).

TheDacheng Nonferrous Metals Futures ETF, which tracks ShFE’s non-ferrous metals futures prices, is China’s second commodity ETF to be listed.

The Huaxia Feed Soymeal Futures ETF was earlier listed on the Shenzhen exchange on December 5.

Commodity ETFs focus on either a single commodity or several futures contracts, and typically track commodities futures price indexes. 

Glendale will be getting a small piece of one of the country’s largest and cheapest forthcoming solar and battery energy storage projects.

Los Angeles is the primary and only other participant in what’s known as the Eland project, slated to be developed and operated by 8minute in eastern Kern County by late 2023.

Earlier this month, Glendale City Council members voted to purchase a 12.5% share of what will ultimately consist of a complex that will house solar panels and lithium-ion batteries in the Mojave Desert.

The 25-year sales agreement with Southern California Public Power Authority, or SCPPA, will provide the city with 25 megawatts of solar energy and up to 18.75 megawatts of battery storage, according to a Glendale city report.

L.A. will get the remaining 87.5% of the project.

Steve Zurn, Glendale Water & Power’s general manager, called the city’s portion a “small but very significant share for us,” during a City Council meeting earlier this month.

The share will push Glendale’s clean-energy portfolio to 45%, up from 36%, Zurn said. The statewide average at the end of 2018 was about 31%, he added.

“We’ve consistently outpaced the state,” Zurn told council members.

At about $33 a megawatt for the combined solar energy and battery storage, it’s one of the least expensive power sources in Glendale’s total portfolio, Zurn said. With the combined solar power and energy storage priced at 3.3 cents per kilowatt-hour, it’s cheaper than natural gas, according to experts and officials.

Glendale’s participation in the project is in line with the city’s “literally never-ending search to identify and obtain renewable power,” Glendale Mayor Ara Najarian said after the meeting.

Glendale utility officials are in the final stages of negotiations on a potential geothermal project in Nevada and have started discussions on possible participation in a proposed solar project in Utah, Zurn said. Those projects are also being negotiated through SCCPA.

About a year ago, Glendale Water & Power’s staff reached out to Los Angeles Department Water & Power to discuss the possibility of participating to a small degree in the Eland project, which L.A. was already working on. By this past spring, the deal was finalized, Zurn said in an email.

“It was a very gracious offer on their part, especially considering they had managed all of the process and negotiated a significant, if not landmark, solar [and] storage project,” Zurn wrote.

LADWP officials did not respond to requests for comment.

Luis Amezcua, a campaign representative with the Sierra Club, hailed the deal as an example of the compounded benefits local governments can glean by working in concert, rather than alone.

By sharing some power, L.A. was able to find a partner to help finance the project, he said.

The only way to get to 100% clean energy — which cities are mandated to do by 2045 under state law — is “by overcoming our similar challenges and fulfilling our similar needs,” Amezcua said.

“We want to see more projects like this and need to see more partnerships like this,” he said.

One of the challenges for Glendale is finding a way to bring in energy from outside sources.

The city lacks an abundance of what’s known as transmission — physical infrastructure, like power lines — to import energy from outside the city, Glendale officials have long pointed out.

According to Zurn, the Eland project does not provide the city with increased transmission. As a result, the city’s ability to access the energy it has purchased from Eland is contingent on figuring out the transmission piece while the facility is being built.

Glendale and L.A. will both receive their energy from Eland at the Barren Ridge Switching Station, also in Kern County, which is owned by the LADWP, Zurn said in his email, citing language from the agreement.

Each city is on its own to secure the necessary transmission to get the energy where it needs to go.

“It is our intent to work through the details necessary to bring the power to our delivery station at Air Way in Glendale through the existing transmission lines in which we already have access/capacity rights,” Zurn said in his email.

“There remain no options for additional or new transmission at this time,” he added.

It’s another situation that highlights the need for collaboration, Amezcua said.

“These transmission projects are expensive, and they take a long time to build,” he said. “If you partner with a neighboring utility that shares these common challenges — that’s willing to split the costs and resources — that’s a lot for each of them to gain.”

Amezcua said he hopes Glendale officials will fight to get the city a share of new transmission that might come online, just as it had worked proactively to be part of Eland.

It’s unclear to what extent, if any, Glendale’s involvement with the Eland project will impact a repowering plan for its aging Grayson Power Plant.

In July, Glendale council members voted to approve a plan that included five internal-combustion engines, or ICEs, that would produce natural gas to be used as backup during high-usage periods. At the time, members said they would determine how many of the ICEs were needed when it was time to install them — which might not happen for another year or so.

During the planning process, some environmentalists, including Amezcua and leaders of the Glendale Environmental Coalition, were adamant that no new gas was needed at Grayson.

In light of the Eland announcement, Amezcua and others have said Glendale is in a better position to potentially avoid building some or all of the gas infrastructure.

“It continues to seem like it’s not likely that this [gas] power is going be needed because it’s going to be eaten up by better resources at better prices,” Amezcua said.

It’s not a view shared by Glendale’s top utility officials.

According to Zurn, the plan for Grayson left an approximately 100 megawatt power “gap” in the city’s energy needs. Eland, and the other projects the city is currently negotiating, are intended to fill that gap, not replace the gas.

“Not anticipating any new opportunities for transmission, the proposed plan would allow us to establish reliable, locally generated power at Grayson to cover peaks, act as a stabilizer for intermittent power sources (solar and wind), and to respond to equipment or system emergencies and natural disasters,” Zurn wrote in his email.

He added that by producing some local gas power, the city could use all of its existing transmission lines to bring in renewable energy.

Najarian said he’s taking a wait-and-see approach and would be open to reducing the number of engines, if possible.

“That’s what we promised — that we’re going to reassess and adjust our plan accordingly in the future,” Najarian said. “Hopefully, we’ll find the transmission, which might lead to reducing one of those engines.”