SUPPLY CHAIN & OPERATIONS
Britain will see one of the larger metal purification centres , thanks to a rare earth developer called Pensana . The developer has its main projects in Angola , but the UK government will assist the company in enhancing the supply chain using the Automotive Transformation Fund . Similarly , companies that localise their ore supply chain tend to receive government aids and tax subsidies .
Nevertheless , shifting the processing centres from Asia-Pacific is easier said than done . While businesses in Asia have retained an efficient framework for the ore supply chain , establishing the same in regions like the European Union or the United States is challenging . Organisations would face many issues , such as the lack of low-cost labour and the presence of stricter regulations . Therefore , a company that relocates its mining and ore-processing infrastructure from China to Europe must be ready for a substantial investment upfront . The same needs to continue for a considerable period , and it becomes a race for survival .
We can find a few examples in the European Union , where the pressure towards reduced carbon footprint is relatively high . Mkango Resources is a popular rare earth developer whose projects are in Malawi . After the long-lasting impact of COVID-19 and increasing demand , the company has partnered with Groupa Azoty Pulawy , a chemical company . Together , they will build a mineral separation plant in the Special Economic Zone of Poland . Similarly ,
Supply over Cost : The Race for Survival There is no doubt that the EV industry will need more minerals than ever by 2030 . Experts have added that there will be a 637 % demand increase for lithium , while cobalt supplies should embrace a 183 % rise by that time . However , 2030 is a number that is far away for companies that aim to establish mineral processing units and ore supply chains in Europe and the United States in 2021 .
The analytics has not yet predicted the pattern for the increase in demand . However , the optimistic sources believe that companies that can keep the costs minimum will survive the race . However , there is also another narrative that is keeping
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