In the world of mining and materials for battery production, the traditional linear approach of extracting raw materials from the earth, processing them, and disposing of products is being challenged by the concept of the “urban orebody.”
This new paradigm involves recycling materials from end-of-life devices such as batteries and electronic products, creating a circular value chain that reduces environmental impacts and accelerates the time to market for essential minerals and metals.
Greg Pitt, vice president of battery materials at Worley, emphasizes the importance of incorporating recycled materials into the supply chain, citing policy regulations like the European Battery Regulations that mandate minimum thresholds for recycled content. This shift towards recycling not only enhances sustainability but also presents both opportunities and challenges for the mining industry.
The urban orebody contains a wealth of valuable minerals like copper, nickel, lithium, cobalt, and more, making it a lucrative resource for future miners. Pitt points out the contrast between mining virgin materials with uncertain quality and quantity and tapping into the readily available urban orebody with its high mineral content and ease of transport.
By adopting a mineral leasing model, where key minerals are leased rather than bought outright, miners can optimize cost-efficiency and promote circularity in the value chain. This innovative approach enables the perpetual circulation of minerals, generating recurring revenue streams and reducing the environmental footprint of battery production.
Transitioning to a leasing model for minerals not only benefits the bottom line but also enhances supply chain security and control. With the right infrastructure and technology in place, miners can ensure traceability and transparency in material flows, further boosting sustainability efforts.
Ultimately, the future of battery materials lies in a combination of traditional mining and urban ore recycling. By striking the right balance between these approaches, mining companies can adapt to a changing landscape and drive sustainable practices across the industry.