McKinsey & Company report says action needed to reduce emissions
McKinsey & Company, the management consultancy that has previously investigated trends in the mining industry, including the number of female employees, today said that a lack of raw materials is challenging battery and automotive producers to reduce their scope 3 emissions.
McKinsey's analysis indicates that, on average, 40% of battery emissions stem from upstream raw material mining and refining processes. Therefore, reducing these processes' carbon footprints is essential to protecting decarbonisation efforts."Given the supply/demand imbalance, building the battery raw material value chain remains a challenge in many markets," partner Raphael Rettig said."Sourcing materials from supplies committed to low-emission fuels and power sources could cut emissions by as much as 80% in mining and refining phases. This needs to be paired with a strong focus on cost reduction given the current profitability pressure in the battery industry," Rettig added. EVsFocus is given to the expected emerging demand for electric vehicles, with McKinsey estimating that worldwide demand for passenger cars in the BEV segment will grow sixfold from 2021 through 2030, with annual unit sales increasing to roughly 28 million from 4.5 million.To meet net-zero transition goals, companies that produce and consume battery materials will need to balance the three dimensions of the "materials trilemma" by ensuring the availability, affordability, and sustainability of materials, it said.The report explains which minerals will be needed to satisfy this demand, examining the lithium, cobalt, manganese, copper, nickel and aluminium markets and the supply/demand shortfalls in each.ManganeseThe management consultants see demand outpacing supply most starkly in manganese, saying that "although manganese ore is plentiful, battery applications require ore conversion into high-purity manganese sulphate monohydrate .""While bringing a refinery online may have a shorter lead time than building a mine, HPMSM production requires very good process control to separate manganese from some common impurities , particularly with the direct precipitation purification process," the report explains.In the base case, using the latest demand estimates, McKinsey analysis projects that in 2030, only about 20% of the HPMSM supply will meet the requirements of battery applications , which themselves will account for only about 5% of total demand for manganese.EmissionsThe raw materials needed to make cathodes in both lithium-nickel-manganese and lithium-phosphate batteries account for about 50-70% of total emissions from battery raw materials , with nickel and lithium contributing the most to Li-NMC emissions and phosphate to LFP emissions . Meanwhile, the raw materials needed to make anode electrodes account for an additional 10-15% of total emissions from battery raw materials, McKinsey said.McKinsey has set out ways to reduce emissions, saying that it "see opportunities for best-in-class battery producers to substantially reduce emissions over two horizons by taking actions to decarbonize in each step of the value chain".This is by sourcing from the most sustainable producers, such as those that have already transitioned to lower-emissions fuels and power sources and by including recycling battery materials and reducing scope 3 emissions by using green chemicals to produce raw and active materials and other components.
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
McKinsey nears $600mn settlement with US over opioid claimsPayment would significantly raise cost to firm of its past work for opioid makers
Read more »
Bernard Looney to chair US start-up as he plans comeback from BP scandalFormer oil company chief joins company building $10bn artificial intelligence data centre in Wyoming
Read more »
UK start-up 9fin raises fresh capital for race in credit markets dataFounder of London-based company predicts winning research company could generate $1bn a year in revenue
Read more »
McKinsey & Company to pay $650 million to settle U.S. opioid consulting probeMcKinsey & Company agreed to pay $650 million in a deferred prosecution agreement that will resolve a federal criminal probe into the company's consulting work…
Read more »
McKinsey pays $650mn in case over its work for opioid makersFormer senior partner also agrees guilty plea in connection with consulting firm’s work for Purdue Pharma and others
Read more »
Prosecutors label $650mn McKinsey opioid pact a warning to consultantsFirm settles criminal investigation and former senior partner admits obstruction of justice
Read more »