PERTH (miningweekly.com) – The Association of Mining and Exploration Companies (Amec) has welcomed a new report by federal Trade, Tourism and Investment Minister Simon Birmingham, on the lithium-ion battery value chain.

“Lithium-ion battery technology has enabled the mobile device revolution and is driving innovation and a global shift in energy storage solutions,” Birmingham said on Tuesday.

“With growing global demand for lithium-ion batteries, this report recognises that Australia has a once-in-a-generation opportunity to transform into a major processing, manufacturing and trading hub for lithium-ion batteries.”

Australia currently produces about half of the world’s lithium, but once it is mined, the ore is shipped offshore, with all of the value-creation activities such as processing and battery manufacturing occurring overseas.

“Australia is uniquely blessed with numerous rare earths that are increasingly important both economically and strategically across the globe. Our ambition is to drive enhanced investment across the value chain of commodities like lithium.” Birmingham said.

“Now is the time to accelerate the development of a high-tech lithium manufacturing sector in our own backyard. Through Austrade’s Resources team we are ramping up our activities overseas to attract investment and highlight our significant comparative advantage such as our strong economic conditions, skilled workforce and well-established resources infrastructure network.”

Minister for Resources and Northern Australia Matthew Canavan said it was time Australia took advantage of the booming lithium industry.

“Lithium prices have tripled since 2010 and global battery consumption is predicted to increase five-fold in the next ten years, driven by a global shift to electric vehicles in some markets and off-grid storage to support renewable energy development,” Canavan said.

“As the world’s largest producer of lithium and with mineral reserves covering 90% of the elements required in lithium-ion battery production, we have an enormous opportunity to leverage off this rapidly-growing industry.

“Our Resources 2030 Taskforce report highlights the importance of developing new strategies to develop competitive downstream industries, including value-adding for prospective battery and critical-minerals industries.

“It is a roadmap for how we can put Australia in the best position to make the most of investments in the lithium supply chain.

“With the right policies we can advance our industry further up the value chain to become the world’s leading supplier of high grade lithium components including ion-batteries, creating new jobs and opportunities for Australians.”

Amec CEO Warren Pearce said on Tuesday that the report joined the growing body of literature acknowledging Australia’s global leadership in battery minerals.

“As the global demand for lithium-ion batteries increases, Australia is well placed to provide the needed minerals.  Australia currently produces nine of the ten mineral elements required to produce most lithium-ion battery anodes and cathodes, and has commercial reserves of the remaining element, graphite,” Pearce said.

“To meet the forecast growth in demand for batteries, Australian mining will need to provide a range of minerals, including lithium, nickel, copper, graphite, manganese and cobalt.”

“This report details every single mineral needed to make a lithium-ion battery and what that means for Australia. Importantly, the value chain for batteries is still fluid for Australia to position itself as a key player and to harvest a greater return for our minerals by undertaking further domestic value adding.”

“If we were to realise this opportunity it could reshape the entire Australian economy, providing jobs, economic diversification and leadership in a critical future technology,” Pearce said.