COVID-19 has forced many countries with large mining activities to consider substantially boosting mining operation automation for which next-generation batteries can play a major role, according to Professor Jose Alarco.

Alarco leads research on new battery materials and superconductors through QUT, the Future Battery Industry CRC, and H2Export. He also helped establish a pilot plant for battery powder manufacturing and Australia’s first dry room labs for lithium ion cell manufacturing, both based at QUT.

The rising demand for batteries

Increased reliance on portable energy solutions, solar storage and the growing consumer appetite for electric vehicles will drive local demand for batteries, according to Alarco.

“The sizes of local markets can become large enough to justify local manufacturing as a more viable economical choice rather than imports from overseas,” he said.

“Safety restrictions on transporting batteries will also play a role in shaping the future of battery trade.

“As a side effect of the coronavirus countries will have to become less reliant on China or other single countries to supply the world.

“As our domestic demand for batteries continues to grow, it makes sense to manufacture locally.”

Professor Alarco said Australia was uniquely placed to source critical raw materials locally.

“Australia mines a lot of raw materials for current and immediate next-generation batteries. We have some of the largest deposits of key materials in the world — including nickel, cobalt manganese and lithium,” he said.

Manufacturing for global demand

This wealth of raw materials — and the ability to process and manufacture with them at home — opens up new opportunities for the Australian market.

“If we don’t just immediately sell our strategic resources, we have the opportunity to decide at which level we want to play in the battery market,” Alarco said.

That level could be anywhere between selling the raw materials to selling materials processed for batteries, or the batteries themselves.

“There’s a big difference in return on investment from selling raw material to processed battery material,” Alarco said.

“If we developed the cells the return would be bigger again — and if we developed a whole device using batteries, we would achieve amazing growth.

“Some recent battery production, businesses and investment have a projected compound annual growth rate around 20–30 per cent a year, according to marketing reports.

“That’s consistent growth over years, which is huge. Not many other economic activities grow that much that fast.”

The economic feasibility of domestic manufacturing is often a sticking point in terms of labour costs, but Alarco said, with automation in production, once markets are sizeable the labour could be more specialised and the return on investment would be worth it.

“Typically, we hear it’s too expensive to manufacture in Australia, but it shouldn’t be,” he said.

“With the right mix of automated processing and monitoring, it shouldn’t make a massive difference.

“Every domestic market can be large enough to manufacture locally. Large economies like Germany and Switzerland maintain a lot of manufacturing, so we know it can work.”

Recent restrictions on trade and travel have highlighted the need for local manufacturing.

“I think most countries will seriously consider going back to manufacturing locally. Coronavirus was a bit of a wakeup call,” Alarco said.

Mine your own business

Originally from Peru, Alarco monitors Australian-Latin American business activities and says mining companies in both countries have been discussing plans to increase automation.

“Before the coronavirus, companies were looking into technologies and methods that could increase efficiency and improve health and safety. But these were just discussion points and longer-term goals,” Alarco said.

“Now talks seem essential and plans should be implemented as soon as possible in case of a coronavirus resurgence or similar pandemic.”

A shift to more automated mining equipment would also bolster demand for batteries.

“Automated mining equipment is powered by batteries, fuel cells or a combination of those energy sources,” Alarco said.

“Mining automation will become a new market driver for batteries and related industries that deliver training, maintenance and monitoring of those systems.”

This means that Australia can mine its own resources, produce batteries locally, and use those batteries to make the mining industry more efficient, effectively closing the loop and keeping a strong economy onshore.

“It’s also a new era for modelling, electronics and design as batteries get bigger and more sophisticated,” Alarco said.

“It’s exciting to see where research and development in this field will take us.”