INTHEBLACK August 2025 - Magazine - Page 43
An industrial robotic arm
installs a battery pack on
an electric car chassis.
processing plant, it undergoes flotation
to separate the lithium-bearing minerals.”
“In the Chinese refineries, the lithium
is refined into what looks like crystals or
small rice grains. There is great opportunity
to build refineries in Australia, too.”
A 2023 report from Accenture and
the Future Battery Industries CRC, titled
Charging Ahead: Australia’s battery-powered
future, supports Bernal’s point of view.
“Australia’s breadth of critical mineral
reserves creates the opportunity for
domestic lithium refining costs to be reduced
by 37 per cent by vertically integrating
mine production with lithium refining,”
the report notes.
“Australia now has the opportunity to build
thriving domestic battery industries that will
provide A$16.9 billion in gross value added
and support 61,400 jobs by 2030,” notes Bernal.
NOT ALL BATTERIES
ARE CREATED EQUAL
Battery composition is tied to cost,
performance and market segment. In the
field of EV batteries, there are three
main combinations.
1. LFP (lithium, iron, phosphate): “This is
the most popular EV battery chemistry, used
in about 55–60 per cent of the market, largely
produced in China,” Bernal says.
“It’s more cost-effective because it doesn’t
contain cobalt or nickel. It offers solid safety,
a long cycle-life [the number of times a
battery can be charged and discharged over
its lifetime] and is typically used in entrylevel and mass-market electric vehicles.”
2. NMC (nickel, manganese, cobalt):
“This chemistry is widely used outside
of China, and is commonly found in
mid-to-high-end vehicles, such as those
from BMW. NMC batteries offer high
energy density, which means they provide
longer driving range between charges. ”
3. NCA (nickel, cobalt, aluminium):
“These batteries are designed for very high
performance and longer range between
charges. They offer excellent energy density
and a long lifespan, making them ideal for
premium electric vehicles and
high-demand applications.”
The choice of battery chemistry is influenced
by more than just a technical or cost decision,
Bernal says. Various batteries and their
ingredients can also reflect growing consumer
expectations around sustainability and ethics.
For instance, cobalt is primarily sourced from
the DRC, where mining practices have raised
concerns around human rights and ethical
sourcing. As a result, some manufacturers opt
instead for cobalt-free chemistries, such as
the LFP battery.
“At present, there is an oversupply of
about 200,000 to 300,000 tonnes of lithium
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