My View: Mining offers a key solution at a critical time for Arizona
All the talk of tariffs imposed by the administration understandably has us thinking about the expense of goods we want or even need, whether it’s a favorite wine or a new set of wheels.
For Arizona’s burgeoning clean energy industry, looming uncertainty related to the supply and costs of needed critical minerals could short-circuit the chances of success for the manufacturers and beyond.
But don’t just take my word for it. The Energy Act of 2020 defined critical minerals as essential to the economic or national security of the United States, and that these minerals have a supply chain that can be harmed by disruption, and would pose significant consequences for the economy or security if a particular product could not be made without the essential substance.
As we know, these connected risks have the possibility of coming to life.
If you’ve used lithium-ion batteries, there’s a strong likelihood that the lithium, cobalt, nickel, manganese and graphite found inside them came from China, which many would consider the chief tariff target. Tariffs aside, China is also talking about curbing exports.
Mexico, Arizona’s nearest international neighbor that is also facing tariffs, produces lithium used in battery production and silver found in circuitry and solar technologies, as well as manganese, nickel and graphite. In particular, the state of Sonora is the dominant producer of copper, used in the wind energy industry.
Mexico’s zinc can be found in solar technologies. In addition, it is used in wind energy systems since its corrosion-resistant properties can protect turbines from harsh conditions such as those found offshore. Zinc also is essential for zinc-ion batteries used to store solar energy, as well as the new zinc-air batteries for wind and solar energy storage.
To the north, Canada also is a major supplier of copper, lithium, cobalt, nickel and graphite used in electric vehicle (EV) batteries.
Mineral shortages could affect proposed Arizona battery factories
A shaky supply chain could be disastrous to the battery plant being built by LG Energy Solution Arizona in Queen Creek and the American Battery Factory facility planned for Tucson. Facing a supply chain risk sooner is Tucson’s Sion Power, which recently launched its new production line for Licerion batteries that incorporate lithium-metal anode technology for high energy, fast charging and long cycle life.
Fortunately, there are solutions in the works here in Arizona that are part of an effort to diversify the U.S. critical mineral supply chain so these companies and more won’t rely on other nations to stay in business.
I’m talking about an idea born yesterday to solve challenges of today and tomorrow. Arizona mining projects in the works can provide lasting solutions.
Resolution Copper is a proposed underground mine near Superior expected to tap into copper deposits nearly 7,000 feet below the earth’s surface and supply nearly 25% of the nation’s copper demand.
Developers say the mine will be a source of critical and other strategic minerals to support the nation’s energy transition. Besides copper, the mine is expected to be a source of silver, tellurium used in solar power cell production, and other critical and strategic materials such as molybdenum, bismuth, rhenium and indium.
In the Patagonia Mountains southeast of Tucson, South 32’s Hermosa mine holds the promise of producing metals essential for a low-carbon future through underground mining and processing methods. Besides silver and zinc, the minerals will include manganese that is increasingly used in EV battery chemistries and lead found in lead-acid batteries that power EVs.
The Cactus open pit copper project just outside Casa Grande is the site of the convergence of three copper belts and will benefit from access to a skilled workforce. With a plan to produce copper wire onsite for Lucid Motors’ batteries, the supply chain will get a boost from an infrastructure that includes water, onsite power, highways and rail networks.
As I write this column, the word came out there is a pause on initiating tariffs on products from all countries but China. But with or without tariffs, Arizona needs to continue a move toward ensuring we have critical minerals when we need them.
Steve Zylstra is president and CEO of the Arizona Technology Council.