The Electric Revolution Demands New Supply Chains
The global automotive industry is undergoing its most significant transformation since the invention of the internal combustion engine. Electric vehicles (EVs) are rapidly moving from niche products to mainstream transportation, driven by government policy mandates, falling battery costs, and growing consumer demand for sustainable mobility. By 2035, EVs are projected to account for over 60% of all new passenger vehicle sales globally, fundamentally reshaping the demand landscape for critical minerals.
This transition presents both an extraordinary opportunity and a formidable challenge. The metals and minerals required to manufacture electric vehicles, their batteries, charging infrastructure, and the renewable energy systems that power them are vastly different from those demanded by the fossil fuel era. Copper, nickel, manganese, and platinum group metals are among the critical minerals that will define the supply chains of the electric future β and Anglo American is a leading global producer of each.
The Critical Minerals Behind Every Electric Vehicle
Understanding the mineral intensity of electric vehicles reveals why securing reliable, responsibly sourced supplies of critical minerals is a strategic priority for nations and manufacturers alike:
Copper: The Wiring of Electrification
Every electric vehicle contains approximately 83 kilograms of copper, used in the electric motor, battery interconnects, wiring harness, charging systems, and power electronics. As EV production scales from approximately 14 million vehicles in 2023 to a projected 40 million by 2030, copper demand from the automotive sector alone could increase by over 1.5 million tonnes annually. Anglo American's copper operations in Chile and Peru are strategically positioned to supply this growing market with high-quality, responsibly produced copper.
Nickel: Powering Higher Energy Density Batteries
Nickel is a key component of the lithium-ion battery cathodes used in the majority of modern EVs. High-nickel cathode chemistries β such as NMC (nickel-manganese-cobalt) and NCA (nickel-cobalt-aluminium) β offer superior energy density, enabling longer driving ranges and faster charging times. Anglo American's nickel operations supply battery-grade nickel to cathode manufacturers who are at the forefront of next-generation battery technology.
Manganese: An Essential Battery Ingredient
Manganese is used in multiple battery chemistries and is increasingly recognised as a critical mineral for EV batteries. As the industry moves towards manganese-rich cathode formulations that reduce dependence on cobalt, demand for high-purity manganese is set to surge. Anglo American's manganese operations in South Africa produce some of the world's highest-quality manganese ore, positioning us to serve this rapidly evolving market.
Platinum Group Metals: Enabling the Hydrogen Economy
While battery electric vehicles dominate the passenger car segment, fuel cell electric vehicles (FCEVs) powered by green hydrogen are emerging as the preferred zero-emission solution for heavy-duty transport, including trucks, buses, and maritime vessels. Platinum is the essential catalyst in proton exchange membrane (PEM) fuel cells, and Anglo American β as the world's largest producer of platinum group metals β is at the centre of this emerging hydrogen economy.
Supply Security: A Geopolitical Imperative
The concentration of critical mineral supply chains in a small number of countries has elevated mineral security to the top of the geopolitical agenda. Governments across Europe, North America, and Asia-Pacific are developing critical minerals strategies that seek to diversify supply sources, build strategic reserves, and incentivise domestic processing capacity. Anglo American's diversified, multi-jurisdictional portfolio offers customers and nations a secure, reliable alternative to concentrated supply chains:
- Geographic diversification: Our operations span six continents, including mining and processing facilities in Chile, Peru, Brazil, South Africa, Botswana, Australia, and the United Kingdom.
- Vertical integration: We control the full value chain from exploration and mining through processing and marketing, ensuring supply chain visibility and quality assurance at every stage.
- Responsible sourcing credentials: Our operations are certified under the Copper Mark, Responsible Jewellery Council, and IRMA standards, providing customers and regulators with independently verified assurance of responsible production.
Anglo American's Strategic Response
Recognising the pivotal role that critical minerals will play in the electric vehicle revolution, Anglo American has aligned its portfolio strategy to maximise exposure to future-enabling commodities:
- Copper growth: We are investing in brownfield expansions and exploration programmes to grow our copper production capacity, with a target of producing over 1 million tonnes per annum within the next decade.
- Nickel expansion: Our investment in nickel exploration and development ensures that we remain a significant supplier of battery-grade nickel as demand accelerates.
- Hydrogen leadership: Through our AP Ventures fund and our nuGenβ’ hydrogen truck programme, we are actively building the hydrogen ecosystem that will create demand for platinum group metals in fuel cell applications.
- Downstream partnerships: We are establishing long-term supply agreements with leading EV manufacturers and battery producers, providing supply certainty while supporting responsible sourcing across the value chain.
Driving Towards a Cleaner Future
The rise of electric vehicles is accelerating the transition to a low-carbon economy, and critical minerals are the foundation upon which this future is being built. Anglo American is committed to supplying these essential materials responsibly, sustainably, and at the scale the world demands. As the electric revolution gathers momentum, our portfolio of critical minerals will be at the heart of every vehicle, every battery, and every charging station that powers the clean mobility of tomorrow.