IGO SUSTAINABILITY REPORT 2022— 17 16 —IGO SUSTAINABILITY REPORT 2022 Overview Supplying a Green Energy Future Nickel, lithium, copper and cobalt will play a critical role in the transition to a zero emissions future. IGO is uniquely placed, being the only company globally producing all four of these key battery raw materials. For the world to achieve net zero emissions targets in the coming decade, the global energy sector will need to transition from a reliance on fossil fuels to renewable energy generation, supported by efficient energy storage technologies. With the rapid evolution of battery technology and a reduction in costs, demand for the lithium-ion batteries market is forecast to grow by 700% by 20351, with much of this growth driven by the electrification of transport. According to Bloomberg New Energy Finance forecasts, passenger electric vehicle (EV) sales will reach nearly 40 million by 2030, with the global fleet reaching nearly 80 million by the same year. With this backdrop, IGO has focused on four key commodities which are critical in the manufacture of the latest, high efficiency lithium-ion batteries. Nickel Nickel is an essential component to a decarbonised future as it is a critical raw material in the manufacture of the cathode component of lithium-ion batteries. Nickel within the cathode helps deliver high energy density and greater storage capacity, enabling modern EVs to travel further between charges while retaining a high level of performance. Growth in demand for EVs, combined with a growing proportion of nickel within the cathodes themselves, will mean demand of high-quality nickel production will surge over the coming decade, with nickel demand from EVs expected increase 400% by 2030.2 Lithium Lithium, particularly in the form of lithium-hydroxide is another key input into lithium-ion batteries and is a critical raw material supporting the global transition to clean energy technologies. Lithium, which is both light and highly conductive, plays the critical role of carrying the electronic charge between the anode and the cathode within a lithium-ion battery. With the ability to be safely and repeatedly recharged over a long cycle life, lithium-ion batteries are currently the leading technology for EVs. With an average EV battery containing 10kg4 of lithium metal, and demand expected to increase more than sixfold by 2030, the world will need to discover and develop additional lithium resources to ensure adequate supply for this rapidly growing market. Copper and Cobalt Copper and cobalt are also key commodities in the shift towards zero emissions energy sources. Copper is a key component of EVs with this important metal used in the electric motors, batteries, inverters and wiring, as well as the supporting charging infrastructure on which EVs rely. The average EV battery contains around 60kg of copper compared to a conventional vehicle which contains around 8 – 22kg.4 However the copper demand will also be driven by the proliferation of renewable energy generation such as wind and solar which rely on copper to reticulate the energy they generate to where it is needed. As such, the transition to an electrified future will see significant increases in copper demand, with demand from the battery sector alone forecast to drive a fourfold increase by 2030. Cobalt is another important primary metal in lithium-ion batteries which help provide safety, durability and energy density. With much of the world’s cobalt supply sourced from geopolitically unstable regions, demand for cobalt, which is produced ethically, safely and sustainability should remain strong. Outlook to 2030 1. Source: Bloomberg New Energy Finance – May 2022. 2. Source: Bloomberg New Energy Finance – June 2022. Ni Cu Co Li Source: Bloomberg NEF – July 2022. Forecast EVDemand Growth 2022 – 2030 4x Ni 6x Li 4x Cu LithiumDemand fromLithium-Ion3 Passenger EV demand Stationary storage demand Consumer electronics demand E-bus demand Commercial EV demand Electric two-wheeler demand Other demand 0 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2,500 1,500 2,000 1,000 500 Forecast Nickel Demand fromLithium-Ion1 0 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2,000,000 1,800,000 1,400,000 1,600,000 1,000,000 1,200,000 800,000 600,000 200,000 400,000 Demand (tonnes) Demand by application (kt) 3. Source: Bloomberg New Energy Finance – June 2022. 4. Source: Minerals Council Commodity Outlook to 2030.
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