PFCL Floats Empanelment Tender for Metering Infrastructure Service Providers

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Himachal Regulator Allows DISCOM to Procure 550 MW Solar Power from SECI

Agri-Solar Solutions Provider GK Energy Files Papers for ₹5.01 Billion IPO


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					</table><p><strong>From: <a href="https://mercomcapital.com/funding-ma-roundup-sibanye-stillwater-secures-559-million-green-financing/" target="_blank" rel="noopener">Mercom Capital Group</a></strong></p>
<p><strong>Sibanye-Stillwater, a mining company, </strong><a href="https://mercomcapital.com/mining-company-sibanye-stillwater-secures-559-million-financing/" target="_blank" rel="noopener"><strong>secured</strong></a><strong> €500 (~$559) million in green financing</strong> for its Keliber lithium project in Finland through its subsidiary Keliber Technology Oy. The green loan comprises a bank-financed €250 (~$278) million Export Credit Agency (ECA) guaranteed tranche, a €150 (~$167) million by the European Investment Bank (EIB), and a €100 (~$111) million syndicated commercial bank tranche. The Keliber lithium mining and battery chemical project is expected to produce up to 15,000 tons of battery-grade lithium hydroxide per annum.</p>
<p><strong>India-focused renewable energy platform Continuum Green Energy has </strong><a href="https://www.mercomindia.com/continuum-funding-for-renewable-energy-projects" target="_blank" rel="noopener"><strong>announced</strong></a><strong> $150 million in new equity</strong> to develop wind, solar, hybrid power, and energy storage projects across India. Just Climate, an investment firm specializing in sustainable solutions, is the investor. Continuum Green Energy is majority-owned by a global infrastructure fund managed by Morgan Stanley Infrastructure Partners. Continuum is an India-focused renewable platform with most of its assets focused on the commercial and industrial consumers.</p>
<p><strong>Enteligent, a solar-powered electric vehicle (EV) charging technologies developer, has </strong><a href="https://www.businesswire.com/news/home/20240816735158/en/Enteligent-Raises-6-Million-to-Scale-Commercialization-of-the-World%E2%80%99s-First-Solar-Powered-DC-to-DC-Charger" target="_blank" rel="noopener"><strong>raised</strong></a><strong> $6 million in capital</strong> from investors to scale the commercialization of its photovoltaic module-level power optimizers and its DC-to-DC-based bi-directional EV chargers. The funding round was led by Taronga Ventures. This recent funding round brings the company’s total fundraising to $19 million since 2021, with an investment from NOVA, an affiliate of global building materials company Saint-Gobain.</p>
<p><strong>Calectra, a thermal energy-based energy storage system provider, <a href="https://mercomcapital.com/thermal-energy-storage-startup-calectra-raises-pre-seed-funding/" target="_blank" rel="noopener">raised</a> $1.6 million in a pre-seed funding round</strong> led by Lifeline Ventures with participation from Aera VC, Security Trading (an investment company of Antti Herlin’s family), Orca Climate Fund, Wave Ventures, Prodeko Ventures, and Justin Brodie-Kommit. Calectra is developing a power-to-heat thermal storage technology to provide manufacturing industries with low-cost, high-temperature (up to 1600°C), emission-free process heat. High-temperature heat is required to manufacture essential materials like cement, steel, and glass.</p>
<p>For reports and trackers on funding and M&amp;A transactions in solar, energy storage, and smart grid sectors, click <a href="https://mercomcapital.com/clean-energy-reports/" target="_blank" rel="noopener">here</a>.</p>
<p>Read last week&#8217;s funding <a href="https://mercomcapital.com/funding-and-ma-roundup-trina-solar-secures-235-million-loan/" target="_blank" rel="noopener">roundup</a>.</p>


Funding and M&A Roundup: Sibanye Stillwater Secures $559 Million Green Financing


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					</table><p>Khanij Bidesh India (<a href="https://mines.gov.in/webportal/content/kabil" target="_blank" rel="noopener">KABIL</a>) has signed an agreement with the Argentina-based mining company Catamarca Minera Y Energetica Sociedad Del Estado (<a href="https://camyen.catamarca.gob.ar/" target="_blank" rel="noopener">CAMYEN SE</a>) for the exploration and development of five lithium brine blocks, as the South Asian nation looks to secure supply of the soft metal used in batteries of everything from electric vehicles to smartphones.</p>
<p>The government claimed this to be the first-ever lithium exploration and mining project by a government company of India and aims to bring in technical &amp; operational experience for brine-type lithium exploration, exploitation, and extraction.</p>
<p>The brines, located in the Catamarca province of Argentina, cover an area of about 15,703 hectares. The project is expected to cost about ₹2 billion ($24 million), KABIL said in a statement.</p>
<p>Brines containing lithium, such as those found in salt flats or underground reservoirs, are pumped up to the surface and then spread in large shallow ponds for evaporation, thus increasing the lithium concentration of the brine, which is then processed to extract the metal. This is different from mining, where lithium stored in rocks is processed for extraction.</p>
<p>KABIL is a government company set up to identify, acquire, develop, process, and make commercial use of strategic minerals in overseas locations for supply in India. It will set up a branch office in Catamarca, Argentina.</p>
<p>Argentina is part of the “Lithium Triangle” along with Chile and Bolivia, with more than half of the world’s total lithium resources.</p>
<p>Lithium’s strategic importance in the transition to a greener economy has prompted the Indian government to secure its own supply of the metal.</p>
<p>Last year in May, India <a href="https://www.mercomindia.com/large-lithium-discovered-in-rajasthan-gsi-officials" target="_blank" rel="noopener">discovered</a> its own deposits of lithium in the state of Rajasthan. The deposits are said to be large enough to meet 80% of India’s lithium demand.</p>
<p>According to a World Bank report, the global demand for lithium will increase by 500% by 2050.</p>
<p>The Ministry of Heavy Industries is in the process of setting up 50 GWh of Advanced Chemistry Cell (ACC) capacity for energy storage under the Performance Linked Incentives program. It has already allocated 30 GWh of capacity and recently announced that it would <a href="https://www.mercomindia.com/ministry-retender-20-gwh-battery-pli" target="_blank" rel="noopener">re-issue</a> the tender for manufacturing the unallocated 20 GWh.</p>


India Signs ₹2 Billion Lithium Exploration Pact with Argentina


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					</table><p>The U.S. Department of Energy (<a href="https://www.energy.gov/" target="_blank" rel="noopener">DOE</a>) has allocated up to $30 million to support the cost reduction related to extracting rare earths and other essential minerals and materials from domestic coal-based sources within the country.</p>
<p>The financial support, made possible by the Bipartisan Infrastructure Law, aims to address the increasing requirement for critical minerals in the U.S. while diminishing the need for overseas sources.</p>
<p>These critical minerals, including rare earth minerals, play a significant role in clean energy technologies, including solar panels, wind turbines, electric vehicles, and hydrogen fuel cells.</p>
<p>The process of extracting such substances from coal, as well as from coal waste and related secondary products, is expected to generate well-compensated employment opportunities in regions that have traditionally been involved in the production of fuel and electricity from fossil energy sources.</p>
<p>Starting from January 2021, the Office of Fossil Energy and Carbon Management (FECM) within the DOE has unveiled approximately $41 million worth of initiatives to bolster the exploration, identification, production, and processing of critical minerals and materials. These efforts are concentrated in regions with a history of conventional mining and fossil fuel production across the United States.</p>
<p>Among these funds is $16 million provided by the Bipartisan Infrastructure Law, designated for comprehensive engineering and cost studies. These studies are directed towards establishing a novel domestic facility that will focus on extracting and separating rare earth elements and essential minerals from non-traditional sources like mining leftovers.</p>
<p>The financial backing is expected to open up land and water restoration prospects while generating rare earth elements essential for powering a clean energy-driven economy.</p>
<p>As per information provided by the U.S. Geological Survey&#8217;s National Mineral Information Center, more than 80% of the rare earth elements required by the United States are imported from international sources rather than being sourced domestically. Despite this, rare earth elements are naturally present in various locations, including within the country&#8217;s coal and coal byproducts.</p>
<p>The announcement for funding aims to harness this typical resource to establish a self-reliant supply chain within the United States. This is deemed essential for the nation&#8217;s economic stability, advancement in clean energy, and overall national security.</p>
<p>The initiative&#8217;s primary goal is to financially support research for laboratory and bench-scale testing of both economically feasible and environmentally sound extraction, separation, and refining technologies. These efforts will commence with the exploration of non-traditional coal-related resources, ultimately resulting in the production of rare earth elements and vital minerals.</p>
<p>In March this year, the U.S. and European Union (EU) <a href="https://www.mercomindia.com/us-eu-agreement-sourcing-minerals-ev-batteries" target="_blank" rel="noopener">agreed</a> to immediately begin negotiations on an agreement on critical minerals used in the electric vehicle (EV) battery supply chain. About the proposed critical minerals agreement, the U.S. and EU said such a partnership would further boost mineral production and processing and expand access to sources of critical minerals that are sustainable, trusted, and free of labor abuses.</p>
<p>In August last year, the U.S. government had <a href="https://www.mercomindia.com/us-to-invest-23-billion-for-clean-energy-deployment" target="_blank" rel="noopener">issued</a> a Request for Information (RFI) on developing and implementing a $675 million critical materials research, development, demonstration, and commercialization program funded under the Bipartisan Infrastructure Law.</p>


US Allocates $30 Million to Develop Supply Chain of Critical Minerals for Clean Energy


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					</table><p>Here is a recap of important headlines from July 2023:</p>
<p><a href="https://www.mercomindia.com/solar-share-installed-power-capacity-q2-2023" target="_blank" rel="noopener"><strong>Solar power accounted for 15.9% of India’s total installed power capacity and 38.3% of the total installed renewable capacity in the second quarter of 2023, up from 14% and 35.4% year-over-year.</strong></a> India’s installed renewable energy capacity, including large hydro projects, stood at 173.5 GW, accounting for a 41.4% share of the overall power capacity mix at the end of the quarter, according to data from the Central Electricity Authority, Ministry of New and Renewable Energy, and Mercom’s India Solar Project Tracker. The renewable energy share in the cumulative power mix increased marginally from 170.3 GW quarter-over-quarter, representing 37.9 % of the overall power capacity mix.</p>
<p><a href="https://www.mercomindia.com/corporate-funding-for-solar-billion-in-first-half-of-2023" target="_blank" rel="noopener"><strong>The total global corporate funding in the solar sector during the first half (1H) of 2023, including venture capital investments, public market funding, and debt financing, reached $18.5 billion</strong></a>, a 54% YoY increase from $12 billion. The numbers were revealed in Mercom Capital Group’s newly released <a href="https://mercomcapital.com/product/1h-q2-2023-solar-funding-ma-report/" target="_blank" rel="noopener">1H and Q2 2023 Solar Funding and M&amp;A Report.</a> Despite the surge in funding amounts, there was a 12% YoY decline in the number of deals executed. During 1H 2023, 80 deals took place in contrast to the 91 deals recorded during the corresponding period in 2022.</p>
<p><a href="https://www.mercomindia.com/corporate-funding-energy-storage-q2-23" target="_blank" rel="noopener"><strong>In 1H 2023, corporate funding for energy storage companies reached an impressive $7.1 billion across 59 deals, according to Mercom Capital Group’s 1H and Q2 2023 Funding and M&amp;A Report Storage and Grid Report.</strong></a> Although this represented a 55% YoY decrease compared to the unprecedented $15.8 billion raised in 60 deals in 1H 2022, it’s crucial to note that LG Energy Solutions’ massive $10.7 billion IPO in January 2022 significantly skewed the YoY comparison.</p>
<p><a href="https://www.mercomindia.com/indias-wind-energy-165-yoy-increase-in-q2-2023" target="_blank" rel="noopener"><strong>India added 1,139.5 MW of wind power capacity in the second quarter (Q2) of the calendar year 2023, representing a 165% YoY increase, according to Mercom India Research.</strong></a> Installations grew 54% quarter-over-quarter from 737.85 MW in Q1 2023. The increase in installations was spurred by enabling policies by the government, such as implementing the Renewable Purchase Obligation trajectory until 2029-2030.</p>
<p><a href="https://www.mercomindia.com/electric-vehicle-sales-q2-2023" target="_blank" rel="noopener"><strong>Electric vehicle (EV) sales in India reached 371,340 units in the second quarter of 2023, a year-over-year increase of 66% compared to 223,293 units sold in the same period last year.</strong></a> Sales increased by 6% compared to 349,676 units sold in the previous quarter. EVs accounted for 7.2% of overall automobile sales, according to data released by the Ministry of Road Transport and Highways through its Vahan Dashboard. India has over 2.4 million registered EVs as of June 2023.</p>
<p><a href="https://www.mercomindia.com/solar-auctions-surge-721-tenders-increase-q2-2023" target="_blank" rel="noopener"><strong>Solar tenders floated by various agencies in India rose 5% quarter-over-quarter (QoQ) to over 14 GW in the second quarter of 2023, according to Mercom India Research.</strong></a> Tender announcements were up 59% year-over-year. The quarter saw a 722% QoQ increase in solar auctions, with almost 7 GW of solar projects auctioned. The capacity auctioned increased by 63% compared to the same period last year.</p>
<p><a href="https://www.mercomindia.com/ev-vegh-raises-5-million-expand-manufacturing" target="_blank" rel="noopener"><strong>Punjab-based electric-two-wheeler manufacturing startup Vegh has secured $5 million in a strategic pre-series investment round from an undisclosed investor.</strong></a> The funds will be used to support Vegh’s working capital needs, including creating a robust sales and distribution network and expanding its manufacturing capabilities for electric vehicle parts. In the first phase of its expansion strategy, the company aims to penetrate 12 states, expand the production capacity of its e-scooter series, the Vegh S60, and introduce two highly anticipated high-speed scooter models.</p>
<p><a href="https://www.mercomindia.com/anti-dumping-probe-aluminum-solar-module-frames-china" target="_blank" rel="noopener"><strong>The Ministry of Commerce of India has announced an anti-dumping investigation by the Directorate General of Trade Remedies into the imported aluminum solar module frames from China.</strong></a> The investigation aims to recommend an appropriate anti-dumping duty that would adequately address the injury to the domestic industry. The decision comes after Vishakha Metals, an Ahmedabad-based solar equipment manufacturer, filed a petition alleging that the aluminum solar module frames are being imported into India from China at dumped prices in significant quantities, resulting in material harm to the domestic industries.</p>
<p><a href="https://www.mercomindia.com/world-bank-loan-india-transition" target="_blank" rel="noopener"><strong>The World Bank Group’s Board of Executive Directors approved $1.5 billion in financing to accelerate the development of low-carbon energy in India by scaling-up green hydrogen projects and promoting climate finance for clean energy investments.</strong></a> The funding operation titled First Low-Carbon Energy Programmatic Development Policy Operation is the first in the series of investments by the World Bank to support India’s energy transition through 2070.</p>
<p><a href="https://www.mercomindia.com/battery-smart-pre-series-funding" target="_blank" rel="noopener"><strong>Gurugram-based Battery Smart, a battery-swapping stations network for electric two and three-wheelers, has raised $33 million by closing a pre-series B funding round.</strong></a> The company said that the capital raised would be used to add 100,000 new customers to its network in the next three years and also help the company expand its operations and services globally. Battery Smart has to date, set up over 600 swap stations and worked with over 25,000 vehicles across 25 cities in India. The funding round saw participation from Battery Smart’s existing investors, Tiger Global, Blume Ventures, and new investors, the Ecosystem Integrity Fund and British International Investment.</p>
<p><a href="https://www.mercomindia.com/neuron-energy-raises-%e2%82%b9200-battery-manufacturing" target="_blank" rel="noopener"><strong>Neuron Energy, a Mumbai-based lithium-ion battery manufacturer, has raised ₹200 million (~$2.4 million) in its pre-series A round.</strong></a> The investment was led by Equanimity Investments and the Rajiv Dadlani Group. It also saw participation from Chona Family Office (Havmor Group) and Kayenne Ventures. The funds will be used to secure ICAT certifications, invest in mold development, and strengthen the workforce by expanding the research and development team and hiring CXOs and senior management.</p>
<p><a href="https://www.mercomindia.com/170000-acres-of-land-allocated-program-r-k-singh" target="_blank" rel="noopener"><strong>The Indian Government has to date, approved 50 solar parks across 12 states with a combined capacity of 37,990 MW.</strong></a> Of the approved parks, 11, with a total 8,521 MW project capacity, are fully commissioned, and seven solar parks of 3,985 MW are partially commissioned. The Union Minister of New Renewable Energy &amp; Power, R.K. Singh, gave the information in a written response in the Lok Sabha. Under the Development of Solar Parks and Ultra Mega Power Projects program, the government has installed 10,237 MW capacity.</p>
<p><a href="https://www.mercomindia.com/allow-private-sector-to-mine-critical-minerals" target="_blank" rel="noopener"><strong>The government introduced a Bill in the Lok Sabha to amend the Mines and Minerals (Development and Regulation) Act to allow the private sector to explore and mine critical minerals</strong></a> used in the energy sector. The proposed legislation seeks to introduce an exploration license for critical and deep-seated minerals. It plans to remove six atomic minerals, such as lithium, titanium, and zirconium-bearing minerals, from the list of reserved minerals. These minerals play vital roles in space industries, electronics, communications, energy sectors, and electric batteries, making them crucial for India’s net-zero emission commitment.</p>


Month in a Minute: Top Headlines from Indian Renewable Sector in July 2023 


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					</table><p>The government introduced a Bill in the <a href="https://sansad.in/ls" target="_blank" rel="noopener">Lok Sabha</a> to amend the Mines and Minerals (Development and Regulation) Act to allow the private sector to explore and mine critical minerals used in the energy sector.</p>
<p>The proposed legislation seeks to introduce an exploration license for critical and deep-seated minerals. It plans to remove six atomic minerals, such as lithium, titanium, and zirconium-bearing minerals, from the list of reserved minerals. These minerals play vital roles in space industries, electronics, communications, energy sectors, and electric batteries, making them crucial for India&#8217;s net-zero emission commitment.</p>
<p>By opening exploration and mining of these minerals to the private sector, the Bill aims to stimulate heightened production and utilization in various industries.</p>
<p>The amendments come when the government is set to <a href="https://www.mercomindia.com/government-to-lithium-reserves-found-in-jk-in-december" target="_blank" rel="noopener">auction</a> the 5.9 million tons of lithium reserves found in Jammu and Kashmir&#8217;s Reasi district last December.</p>
<p>The license will be granted through auction, allowing the licensee to undertake survey and prospecting operations. The explored blocks will then be auctioned for mining leases, providing better revenue to state governments and encouraging private sector participation in mineral exploration.</p>
<p>To ensure transparency and efficiency, the government will conduct auctions through competitive bidding, including e-auction, for granting mining leases or composite licenses.</p>
<p>Holders of exploration licenses will be entitled to a share of the applicable amount quoted in the auction of mining leases payable by lessees to the state government, applicable only to minerals specified in the seventh schedule.</p>
<p>The Bill imposes area restrictions for exploration licenses, limiting the total area covered under a single license to one thousand square kilometers and restricting the total area covered under one or more exploration licenses to five thousand square kilometers.</p>
<p>Exploration license holders must submit geological reports to the state government within three months of completing reconnaissance and prospecting operations.</p>
<p>The Bill clarifies the rights and liabilities of holders of mineral concessions, guiding the extension of licenses and retention of exploration areas. It seeks to streamline the mining sector, attract investments, and promote sustainable mineral exploration.</p>
<p>The Geological Survey of India <a href="https://www.mercomindia.com/large-lithium-discovered-in-rajasthan-gsi-officials" target="_blank" rel="noopener">announced</a> the discovery of lithium reserves in Rajasthan earlier this year.</p>


Government Pilots Bill to Allow Private Sector to Mine Critical Minerals

<p>Lithium rates have surged by over seven times since May last year, creating challenges for the global electric vehicle (EV) battery supply chain.</p>
<p>The International Energy Agency (<a href="https://www.iea.org/" target="_blank" rel="noopener">IEA</a>) said cobalt and nickel prices more than doubled from March 2021 to May 2022, stressing the supply chain as battery demand increased. Russia supplied 20% of high purity nickel to battery manufacturers globally, and its invasion of Ukraine fuelled metal prices. Russia is also the world’s largest battery-grade (Class-1) nickel producer.</p>
<p>In its Global EV Outlook, IEA has suggested that robust mining and drilling measures will help the EV sector fulfill its metal needs to boost the transport electrification drive.</p>
<p style="text-align: center;"><img loading="lazy" decoding="async" class="aligncenter size-full wp-image-36000" src="https://mercomindia.com/wp-content/uploads/2022/05/Battery-Demand-Surges-in-All-Regions.png" alt="Battery Demand Surges in All Regions" width="1504" height="859" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/05/Battery-Demand-Surges-in-All-Regions.png 1504w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/05/Battery-Demand-Surges-in-All-Regions-300x171.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/05/Battery-Demand-Surges-in-All-Regions-768x439.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/05/Battery-Demand-Surges-in-All-Regions-650x371.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/05/Battery-Demand-Surges-in-All-Regions-624x356.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/05/Battery-Demand-Surges-in-All-Regions-600x343.png 600w" sizes="(max-width: 1504px) 100vw, 1504px" /></p>
<h6 style="text-align: center;">Source: IEA</h6>
<p><strong>Battery pack rates soar</strong></p>
<p>The IEA report notes that drill counts (number of active drilling rigs) for nickel and lithium have surged by over 50% and three times more, respectively, between 2020 to 2021. Such high prices have ultimately led to increased battery metal commodity rates.</p>
<p>The average battery prices globally fell by 6% to $132 per kWh in 2021, a slower decline than the 13% drop in 2020. The report estimates that with such continued high prices, the battery pack rates are likely to shoot up by 15% from the weighted average price in 2021.</p>
<p>Lithium demand doubled to 80 kt in 2021 compared to 2017, of which the demand for EV batteries accounts for 47%, up by 36% in 2020. While EV batteries are the dominant driver of demand for lithium, its availability is a concern as it is irreplaceable for Li-ion batteries, and there are no commercial substitute battery chemistries at a scale currently that meet Li-ion’s performance.</p>
<p>Automotive Lithium-ion battery demand reached 340 GWh in 2021, more than twice the demand in 2020, primarily driven by the increase in electric passenger cars, which observed a 120% surge in registrations last year.</p>
<p>The demand for cobalt was 170 kt in 2021, of which the EV battery share was 24%, up from 18% in 2020. The demand for nickel reached 2,640 kt in 2021, dominated by the production of stainless steel, of which the share of EV-related demand was 7%, up by 4% in 2020.</p>
<p>The IEA report says that while the governments in the U.S. and Europe have taken bold public sector initiatives to develop domestic battery supply chains, China has been assigned 70% of battery production capacity until the end of the decade.</p>
<p>Over half of global lithium, cobalt, and graphite processing and refining capacity is in China, followed by Europe, which supports over one-quarter of global EV production with 20% cobalt processing. With 10% of global EV production, the U.S. has a battery production capacity of 7%.</p>
<p style="text-align: center;"><img loading="lazy" decoding="async" class="aligncenter size-full wp-image-36001" src="https://mercomindia.com/wp-content/uploads/2022/05/Global-Distribution-of-EV-Battery-Supply-Chain.png" alt="Global Distribution of EV Battery Supply Chain" width="1504" height="740" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/05/Global-Distribution-of-EV-Battery-Supply-Chain.png 1504w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/05/Global-Distribution-of-EV-Battery-Supply-Chain-300x148.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/05/Global-Distribution-of-EV-Battery-Supply-Chain-768x378.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/05/Global-Distribution-of-EV-Battery-Supply-Chain-650x320.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/05/Global-Distribution-of-EV-Battery-Supply-Chain-624x307.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/05/Global-Distribution-of-EV-Battery-Supply-Chain-600x295.png 600w" sizes="(max-width: 1504px) 100vw, 1504px" /></p>
<h6 style="text-align: center;">Source: IEA</h6>
<p>Japan and Korea specialize in raw material processing, and while the former’s cathode production capacity is 14%, Korea produces 15% of the global cathode used in EV batteries.</p>
<p><strong>Lithium extraction</strong></p>
<p>The IEA report stresses on direct lithium extraction (DLE) process, which is currently in the pilot stage globally. DLE relies on high selectivity technologies to extract lithium from complex brines and reject impurities while offering cost and lead-time advantages.</p>
<p>The report suggests remining from mineral waste to extract valuable metals from mine tailings, wastewater, and rock. According to IEA, nickel and copper mining tailings totaled 4 billion tons in 2017. Many start-ups like the Rio Tinto-backed Regeneration have started remining to derive the best resources from what is dumped as waste.</p>
<p>According to another IEA report published by Mercom, the sale of electric cars more than <a href="https://mercomindia.com/sale-electric-cars-doubled-yoy-2021/" target="_blank" rel="noopener">doubled</a> to 6.6 million in 2021 compared to 3 million in 2020, amounting to 9% of the global car market.</p>
<p>The U.S. Department of Energy recently <a href="https://mercomindia.com/us-funding-boost-domestic-battery-manufacturing/" target="_blank" rel="noopener">announced</a> $3.16 billion in funding to expand domestic battery manufacturing, and bolster domestic supply chains. It will also set aside a separate $60 million to support second-life applications for batteries once used to power EVs and new processes for recycling materials back into the battery supply chain.</p>


EV Battery Supply Chains Stressed as Lithium, Cobalt and Nickel Prices Soar: IEA

<p>As the solar photovoltaic (PV) market continues to expand, with 18 countries achieving 1 GW installation capacity in 2020, silver’s offtake by the PV industry reached 101 million ounces (Moz) or 3,142 tons in 2020.</p>
<p>According to the ‘World Silver Survey 2021,’ by the <a href="https://www.silverinstitute.org/" target="_blank" rel="noopener">Silver Institute</a>, the demand for the precious metal surged despite an 80% drop in the average silver loading per cell over the last decade.</p>
<p>The drop in silver loading was caused by the metalization process, which shrunk the average width of the electrode, busbar, and finger (both are electrical conductors to collect the direct current on the PV panel) from 100μm (micron) to 30μm.</p>
<p><a href="https://mercomindia.com/wp-content/uploads/2021/04/PV-Silver-Demand-and-Cell-Loading.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-26088 size-full" src="https://mercomindia.com/wp-content/uploads/2021/04/PV-Silver-Demand-and-Cell-Loading.png" alt="PV Silver Demand and Cell Loading" width="602" height="542" srcset="https://cms.mercomindia.com/wp-content/uploads/2021/04/PV-Silver-Demand-and-Cell-Loading.png 602w, https://cms.mercomindia.com/wp-content/uploads/2021/04/PV-Silver-Demand-and-Cell-Loading-300x270.png 300w, https://cms.mercomindia.com/wp-content/uploads/2021/04/PV-Silver-Demand-and-Cell-Loading-600x540.png 600w" sizes="(max-width: 602px) 100vw, 602px" /></a></p>
<p>Yet, silver’s share in the total solar module costs at the end of 2020 had risen to around 11% due to the rise in the silver price and lower module manufacturing costs.</p>
<p>Cost pressures should continue to weigh on the silver content, with the finger width expected to drop by 30% to 20μm by 2025. Although thrifting and substitution of silver are unavoidable, it is difficult to quickly replace due to concerns over production compatibility and reliability issues of the alternatives.</p>
<p>Silver thrifting, however, does have the benefit of lowering cost. The economies of scale and huge efficiency gains have cut the cost of solar electricity on average by almost 90%. It has helped solar power become the most competitive source of renewable energy, which helps explain optimistic projections of future capacity growth.</p>
<p>New generation cells (such as hetero-junction back contact cells) also have the potential to drive costs down even further, often through efficiency gains.</p>
<p>According to the report, the energy storage market is expected to grow exponentially over the next few years and in favor of silver. From only 4.5 GW last year, new storage capacity additions are forecast to more than double to 10 GW in 2021 and jump to over 40 GW by 2022. The wide-scale adoption of these storage systems is projected to drive the renewable sector further.</p>
<p>This will also help silver offtake in solar deployment and power grid construction. Silver demand is also seen in the electric vehicle segment, both directly in the vehicle and indirectly with infrastructure requirements. All this sets out the strong potential for ‘green silver,’ even if probable thrifting and substitution of silver temper the future demand growth, the report said.</p>
<p>The solar PV and electric vehicle sectors have seen a steady source of silver demand over the past decade. The demand is expected to <a href="https://mercomindia.com/solar-ev-sectors-to-prop-silver-demand/" target="_blank" rel="noopener">continue</a> in the coming years as these sectors grow across the globe and in developing nations, in particular. Silver is expected to see a demand rise in 2021 as the solar photovoltaics and electric vehicle sectors take off globally.</p>
<p>Leading Chinese manufacturers have said that the <a href="https://mercomindia.com/solar-module-prices-high-second-half-of-2021/" target="_blank" rel="noopener">spiraling</a> prices of raw materials like glass, polysilicon, and silver since the second half of 2020 have led to a sharp increase in the prices of solar modules. Between June 2020 and February 2021, silver prices shot up by 55%. Silver is mainly used in manufacturing silver paste for solar cell metallization.</p>


Silver Demand by the Global Solar PV Market Surges to 3,142 Tons

<p>To realize a lower-carbon future, there will be a substantial increase in demand for several key strategic minerals and metals to manufacture cleaner energy technologies.  Keeping this in perspective, the <a href="http://www.worldbank.org/" target="_blank" rel="noopener noreferrer">World Bank</a> has announced a multi-donor trust fund called the <a href="http://www.worldbank.org/en/topic/extractiveindustries/brief/climate-smart-mining-minerals-for-climate-action" target="_blank" rel="noopener noreferrer">Climate-Smart Mining Facility</a>. The goal of this facility is to promote the sustainable extraction of minerals used in renewable energy technologies such as wind, solar and batteries for energy storage and electric vehicles.</p>
<p><strong>The Climate-Smart Mining Facility </strong>will help resource-rich developing countries benefit from the increasing demand for minerals and metals while ensuring the mining sector is managed in a way that minimizes the environmental and climate footprint.</p>
<p>The World Bank plans to deploy a total investment of $50 million over 5 years. This facility is expected to focus on activities around four core themes: climate change mitigation; climate change adaptation; reducing material impacts and creating market opportunities, contributing to the decarbonization and reduction of material impacts along the supply chain of critical minerals needed for clean energy technologies.</p>
<p>In its <a href="http://www.worldbank.org/en/news/press-release/2019/05/01/new-world-bank-fund-to-support-climate-smart-mining-for-energy-transition" target="_blank" rel="noopener noreferrer">The Growing Role of Minerals and Metals for a Low Carbon Future</a> report, the World Bank found that there will be an exponential growth in demand for “strategic minerals” such as lithium, graphite, and nickel by 2050. Consequently, the report stated that without climate-smart mining practices, the negative impacts of mining activities would increase, affecting vulnerable communities and the environment.</p>
<p>The projects which the fund is expected to invest in:</p>
<ul>
<li>Supporting the integration of renewable energy into mining operations, given that the mining sector accounts for up to 11% of global energy use and that mining operations in remote areas often rely on diesel or coal</li>
<li>Supporting the strategic use of geological data for a better understanding of “strategic mineral” endowments</li>
<li>Forest-smart mining: preventing deforestation and supporting sustainable land-use practices; repurposing mine sites</li>
<li>Recycling of minerals: supporting developing countries to take a circular economy approach and reuse minerals in a way that respects the environment</li>
</ul>
<p>“The World Bank supports a low-carbon transition where mining is climate-smart and value chains are sustainable and green. Developing countries can play a leading role in this transition: developing strategic minerals in a way that respects communities, ecosystems and the environment. Countries with strategic minerals have a real opportunity to benefit from the global shift to clean energy,” said Riccardo Puliti, senior director and head of the energy and extractives global practice at the World Bank.</p>
<p>Recently, the <a href="http://www.worldbank.org/" target="_blank" rel="noopener noreferrer">World Bank</a> established a new Efficient, Clean Cooling Program to accelerate the uptake of sustainable cooling solutions, including air conditioning, refrigeration and cold chain in developing countries.</p>
<p>The World Bank also <a href="https://mercomindia.com/world-bank-off-grid-solar-west-africa-sahel/" target="_blank" rel="noopener noreferrer">approved</a> an International Development Association (IDA) fund of $150 million and another $74.7 million contingent recovery grant from the Clean Technology Fund to help increase off-grid electricity access for people in West Africa and Sahel regions.</p>
<p>&nbsp;</p>


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