World’s largest zinc smelter sees opportunity in US energy bill
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Korea Zinc plans to spend around $6.6 billion by 2030 on green energy solutions. In the months since, Biden’s controversial Inflation Reduction Act has come into law. It seeks to encourage automakers around the world to manufacture electric cars in the US and reduce reliance on Chinese materials in the battery-car supply chain.
“For the purpose of complying with the IRA, I think everybody will be incentivized to find the sources of their minerals in countries like Australia, even the USA,” he said. “The IRA creates an opportunity for us and probably for other companies too, which incentivizes people to develop projects in certain parts of the world rather than some other parts.”
In terms of nickel, a key EV battery ingredient, the entire market is estimated to grow to about 4.5 million tons by 2030, Choi said, citing industry forecasts. The battery-related nickel part of that will account for around 2.6 million tons, or almost 60%. It demonstrates the wild growth in demand for nickel, versus zinc, which by comparison is a market that’s been growing steadily at around 2% a year for more than two decades, he said. The nickel market is “crazy.”
