Electrification
Visualizing Peru’s Silver Mining Strength
The following content is sponsored by Silver X.
Visualizing Peru’s Silver Mining Strength
Peru’s silver mining industry is critical as the world progresses towards a clean energy transition. Silver’s use in EVs, solar energy, and mobile technologies will require ready supplies to meet demand.
Peru will be centre stage as the world’s second-largest producer of the precious metal.
This graphic sponsored by Silver X showcases Peru’s silver mining strength on the global scale, putting in perspective the country’s prolific production.
Global Silver Production by Country
Mexico, Peru, and China dominate global silver production, with these countries producing more than double the silver of any other country outside of the top three.
In terms of regional production, Central and South America provide the backbone for the world’s silver industry. With five nations in the top 10 producers, these regions delivered ~50% of the world’s 2020 silver production.
Country | 2020 Silver Production (in million ounces) | Share of Global Silver Production |
---|---|---|
Mexico | 178.1 | 22.7% |
Peru | 109.7 | 14.0% |
China | 108.6 | 13.8% |
Chile | 47.4 | 6.0% |
Australia | 43.8 | 5.6% |
Russia | 42.5 | 5.4% |
Poland | 39.4 | 5.0% |
United States | 31.7 | 4.0% |
Bolivia | 29.9 | 3.8% |
Argentina | 22.9 | 2.9% |
World Total | 784.4 | 100% |
Along with being the top silver mining regions in the world, Central and South America silver production expects to have the strongest rebound in 2021.
While global silver production could increase by 8.2%, Central and South America’s production could rise by 12.1%.
Peru can feed this growth, with the country’s exploration investment forecast for this year expected to reach up to $300 million with over 60 projects currently in various stages of development.
The South American Powerhouse: Peru’s Silver Mining Strength
Despite its current silver production, there remains more to mine and explore. In fact, Peru holds the majority of the world’s silver reserves with 18.2%, making it the global focal point for silver exploration and future production.
Country | Silver Reserves (in tons) | Share of World Silver |
---|---|---|
Peru | 91,000 | 18.2% |
China | 41,000 | 8.2% |
Mexico | 37,000 | 7.4% |
Chile | 26,000 | 5.2% |
Australia | 25,000 | 5.0% |
Other countries | 280,000 | 56% |
World total | 500,000 | 100% |
While 2020 and 2021 saw slowdowns in mineral production, Peru’s metallic mining subsector increased by 5.1% in August 2021 compared to the same month last year. The country’s National Institute of Statistics and Informatics also highlighted a double-digit rise in silver production of 22.7% compared to August of last year.
Satiating the World’s Silver Demand
As silver demand is forecasted to increase by 15% just in 2021, silver supply constraints are a clear roadblock for clean energy technologies and electric vehicle production. With Peru’s annual silver production forecasted to grow by more than 27% by 2024, the country is looking to solve the world’s growing silver supply crunch.
The nation’s strong credit ratings and well-established mining sector offers investors a unique opportunity to tap into the growth of Peru and its silver industry, while powering renewable energy and electric vehicle production.
As a Peru-based mineral development and exploration company, Silver X Mining is working to produce and uncover the silver deposits that will provide the world with the metal it needs for cleaner technologies.
Electrification
Visualizing the EU’s Critical Minerals Gap by 2030
This graphic underscores the scale of the challenge the bloc faces in strengthening its critical mineral supply by 2030.
Visualizing EU’s Critical Minerals Gap by 2030
The European Union’s Critical Raw Material Act sets out several ambitious goals to enhance the resilience of its critical mineral supply chains.
The Act includes non-binding targets for the EU to build sufficient mining capacity so that mines within the bloc can meet 10% of its critical mineral demand.
Additionally, the Act establishes a goal for 40% of demand to be met by processing within the bloc, and 25% through recycling.
Several months after the Act’s passage in May 2024, this graphic highlights the scale of the challenge the EU aims to overcome. This data comes exclusively from Benchmark Mineral Intelligence, as of July 2024. The graphic excludes synthetic graphite.
Securing Europe’s Supply of Critical Materials
With the exception of nickel mining, none of the battery minerals deemed strategic by the EU are on track to meet these goals.
Graphite, the largest mineral component used in batteries, is of particular concern. There is no EU-mined supply of manganese ore or coke, the precursor to synthetic graphite.
By 2030, the European Union is expected to supply 16,000 tonnes of flake graphite locally, compared to the 45,000 tonnes it would need to meet the 10% mining target.
Metal | 2030 Demand (tonnes) | Mining (F) | Processing (F) | Recycling (F) | Mining Target | Processing Target | Recycling Target |
---|---|---|---|---|---|---|---|
Lithium | 459K | 29K | 46K | 25K | 46K | 184K | 115K |
Nickel | 403K | 42K | 123K | 25K | 40K | 161K | 101K |
Cobalt | 94K | 1K | 19K | 6K | 9K | 37K | 23K |
Manganese | 147K | 0K | 21K | 5K | 15K | 59K | 37K |
Flake Graphite | 453K | 16K | 17K | N/A | 45K | 86K | N/A |
The EU is also expected to mine 29,000 tonnes of LCE (lithium carbonate equivalent) compared to the 46,000 tonnes needed to meet the 10% target.
In terms of mineral processing, the bloc is expected to process 25% of its lithium requirements, 76% of nickel, 51% of cobalt, 36% of manganese, and 20% of flake graphite.
The EU is expected to recycle only 22% of its lithium needs, 25% of nickel, 26% of cobalt, and 14% of manganese. Graphite, meanwhile, is not widely recycled on a commercial scale.
Electrification
Visualizing China’s Cobalt Supply Dominance by 2030
Chinese companies are expected to control 46% of the cobalt supply by 2030.
Visualizing China’s Cobalt Supply Dominance by 2030
Chinese dominance over critical minerals used in technologies like smartphones, electric vehicles (EVs), and solar power has become a growing concern for the U.S. and other Western countries.
Currently, China refines 68% of the world’s nickel, 40% of copper, 59% of lithium, and 73% of cobalt, and is continuing to expand its mining operations.
This graphic visualizes the total cobalt supply from the top 10 producers in 2030, highlighting China’s dominance. The data comes from Benchmark Mineral Intelligence, as of July 2024.
Cobalt production (tonnes) | Non-Chinese Owned Production | Chinese Owned Production | 2030F (Total) | 2030F (Share) |
---|---|---|---|---|
🇨🇩 DRC | 94,989 | 109,159 | 204,148 | 67.9% |
🇮🇩 Indonesia | 23,288 | 25,591 | 48,879 | 16.3% |
🇦🇺 Australia | 7,070 | 0 | 7,070 | 2.4% |
🇵🇭 Philippines | 5,270 | 0 | 5,270 | 1.8% |
🇷🇺 Russia | 4,838 | 0 | 4,838 | 1.6% |
🇨🇦 Canada | 4,510 | 0 | 4,510 | 1.5% |
🇨🇺 Cuba | 4,496 | 0 | 4,496 | 1.5% |
🇵🇬 Papua New Guinea | 541 | 3,067 | 3,608 | 1.2% |
🇹🇷 Turkey | 2,835 | 0 | 2,835 | 0.9% |
🇳🇨 New Caledonia | 2,799 | 0 | 2,799 | 0.9% |
🌍 ROW | 10,336 | 1,901 | 12,237 | 4.1% |
Total | 160,974 | 139,718 | 300,692 | 100.0% |
China’s Footprint in Africa
Cobalt is a critical mineral with a wide range of commercial, industrial, and military applications. It has gained significant attention in recent years due to its use in battery production. Today, the EV sector accounts for 40% of the global cobalt market.
The Democratic Republic of Congo (DRC) currently produces 74% of the world’s cobalt supply. Although cobalt deposits exist in regions like Australia, Europe, and Asia, the DRC holds the largest reserves by far.
China is the world’s leading consumer of cobalt, with nearly 87% of its cobalt consumption dedicated to the lithium-ion battery industry.
Although Chinese companies hold stakes in only three of the top 10 cobalt-producing countries, they control over half of the cobalt production in the DRC and Indonesia, and 85% of the output in Papua New Guinea.
Given the DRC’s large share of global cobalt production, many Chinese companies have expanded their presence in the country, acquiring projects and forming partnerships with the Congolese government.
According to Benchmark, Chinese companies are expected to control 46% of the global cobalt mined supply by 2030, a 3% increase from 2023.
By 2030, the top 10 cobalt-producing countries will account for 96% of the total mined supply, with just two countries—the DRC and Indonesia—contributing 84% of the total.
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