According to Fitch Solutions May 2021 Europe Mining Insight report, the European Union estimates the region will need 18 times more lithium and five times more cobalt by 2030 to meet the skyrocketing demand for metals used in battery production for electric vehicles (EV).
With the fourth largest lithium deposit globally and its proximity to planned battery factories, the Czech Republic expects to benefit significantly from the rising demand for EV. Germany and Portugal also have substantial lithium deposits in their respective countries and are in line for increased mining activity.
The only European country currently with cobalt production capabilities is Finland. However, several promising areas are forecast to receive investment to meet the rising demand for the raw material. These areas include Germany, Poland and the Czech Republic.
With the push toward more renewable energy sources, the coal industry in the region foresees a significant decline by 2030. The commitment to the phasing out of coal-fired power plants varies by country―Germany is one of the more proactive areas―in contrast with countries such as Poland that will eliminate the fuel source more slowly.
To compete with low-cost regions and emerging markets, the European mining industry anticipates significant investment in cutting-edge technologies such as artificial intelligence and automation. Sweden and Finland are the frontrunners in this area, using sensors and data to cut costs and increase productivity. Advanced mobile technology and driverless trucks are already in use, with the technology predicted to spread throughout the mining industry worldwide.
Conversely, Russia is investing in increased capacity for coal, grain and fertilizers as the nation attempts to capitalize on increased export capabilities to the Asia-Pacific region, including China and Japan. China’s coal consumption is forecast to remain strong throughout the decade, with efforts to curtail its use beginning after 2030.
Regardless of the situation, John Crane is here to serve the mining industry’s needs. For companies in areas anticipating growth, our sites in the region are operating in accordance with recommended health guidelines and ensuring worker and public safety. Local production and service centers are equipped to supply the mining market with the products and repairs needed to meet growing demand. Technicians and engineers are available to troubleshoot problems that delay production. For areas forecasting further difficulties, John Crane offers products and engineering solutions to aid in cost control and the conservation of natural resources.
John Crane provides innovative sealing solutions and engineering support regardless of required customer parameters. Whether uncovering cost-cutting solutions, eliminating environmental hazards or keeping rotating equipment operational, our team is prepared to assist. Learn how John Crane can support your mining operation.
Contact us today to discuss any application questions with our European mining experts.
The information in this article was sourced from Fitch Solutions Europe Mining Insight May 2021.