Bauxite
Bauxite ore is the raw material that is refined into alumina and smelted into aluminium.
Aluminium is used in common items across multiple industries including construction, transport, packaging, consumer goods and electronics. Importantly, the forecasted surge in demand is largely driven by the important role aluminium plays in the energy transition:
- EVs need 30% more aluminium than internal combustion engines, notably for battery packaging and heat sink
- 1MW of wind turbine energy needs 1MT of aluminium
- Solar technology industry expected to need 4MT of aluminium by 2040
Global bauxite prices soared in 2024, trading above US$100/t following significant production curtailments and supply disruptions by international producers.
China is the largest producer of both alumina and aluminium, as well as the largest consumer of bauxite. In recent years China’s bauxite imports have increased to record highs driven by dwindling domestic supply. Chinese refineries have curtailed alumina production due to domestic bauxite shortages. With recent supply disruptions out of Guinea, which accounts for 70% of China’s bauxite imports, new and reliable sources of high-quality bauxite ore are critical to end users to ensure long-term market stability.
Aluminium demand is set to rise significantly in the decades ahead, reaching 335Mt by 2050 underpinned by a compounded annual growth rate of 4.2% between 2020 – 2050.