The role of the Chemical Industry in Critical Raw Materials

1. The role of the Chemical Industry in Critical Raw Materials Prof. Dr. Michael Röper, BASF SE Industrial Technologies 2012, Aarhus June 20, 2012

2. Raw Materials are of Key Importance to the Chemical Industry • The chemical industry is the key enabler of sustainable industrial production • Raw materials present about 30 % of the costs of a chemical product; sourcing at competitive prices is essential • Carbon feedstocks – oil, gas, coal, renewables, and CO2 – are the base of organic chemistry that creates about 90% of the value of the chemical industry • Some inorganic feedstocks are regarded as critical: Noble metals, some rare earth elements, indium, lithium, phosphate, … • The chemical industry helps to overcome the tightness of critical raw materials through improving the exploitation of deposits, improving the efficiency in processing, recycling, and substitution

3. Critical Inorganic Feedstocks Use • Noble metals: contacts in the electronic industry, catalysts in exhaust gas converters, fuel cells, oil refining, chemical conversions • Some rare earth elements: magnets, phosphors, ceramics, alloys, glass & polishing, catalysts • Indium: transparent conductor for lighting & displays, touch screens • Lithium: batteries, glass, ceramics, pharmaceuticals • Phosphates: fertilizers, detergents, animal feed Strategies to improve the availability • Improving the exploitation of deposits • Improving the efficiency in processing • Reducing the use by improved design & materials science • Recycling after use • Substitution by more abundant feedstocks

4. Rare earth oxides (REO)Reserves • Estimated global reserves of 100 million metric tons REO are sufficient to meet demand for the next 100 years (USGS, 2010) • 97% of REO mining and purification is today done in China • Negligable capacity outside China due to costs and environmental issues (significant Th amounts in ores) 22% all other countries 13% USA 5% Australia 3% India 38% China 19% CIS 7%

5. Ore Grinding, magnetic/gravity separation, flotation Mineral concentrate Cracking (acids or bases) In situ mining (Ion adsorption clays) RE/Th/U concentrate Separation of Th and/or U Mixed RE concentrate Separation of REO Individual REO Metallothermic or electrolytic reduction RE metals REE ProcessingFrom ores to REO (RE oxides) and RE metals

6. Enhanced REE Processing Beneficiation/Cracking Separation of the individual REO‘s

7. Reductionof CRM Use in Catalysis

8. Better Catalyst Design toReduce CRM Use Catalystsare essential for exhaust gas cleaning, oilrefining, andchemicalproduction. Manycatalystsarebased on noble metals (Pt, Pd, Rh, ...) on supportsandsomecontain rare earthsasco-catalysts – improved design canreducetheuseofthesematerials: • Reductionofactiveparticlessizeon thesupportincreasesthecatalyticallyactivesurfaceandallowsreductionofmetalcontentwhilemaintainingorimprovingthecatalystproperties • Increaseofcatalystlife-time (servicelife) reducestheneed for replacementanddecreasesthe down time for catalystreplacement • Rational catalyst design enhancesproductyieldsandselectivities (e.g. byimprovedsupports, promotersorgeometry) • Replacementof CRMs bylesscriticalmaterials (e.g. platinumbynickel)

9. Substitution of CRMs

10. Graphene as a Substitute for ITO as Transparent Electrodes Graphite Graphene

11. Preparation of Graphenetransparent films by CVD

12. Conclusions • The chemical industry is the key enabler of sustainable industrial production and relies heavily on a reliable raw materials supply at competitive conditions (carbon & inorganic feedstocks) • Some inorganic feedstocks are regarded as critical: Noble metals, some rare earth elements, indium, lithium, phosphate, … • The chemical industry helps to overcome the tightness of critical raw materials through improving the exploitation of deposits, improving the efficiency in processing, recycling, and substitution • Redesign of materials and products through material science is an efficient tool to reduce CRM utilization and to improve the sustainability of industrial production

13. Back-up The role of the Chemical Industry in Critical Raw Materials Prof. Dr. Michael Röper, BASF SE Industrial Technologies 2012, Aarhus June 20, 2012

14. Carbon Feedstocks for the Chemical Industry in Germany Total: 21,2 Mill. t (2008) Source: VCI, FNR 2010

15. Availability of Fossil Feedstocks Situation • Base for power&fuel industries: fuels for mobility, electrical power, heating&cooling • Mineral oil the most important feedstock of the chemical industry, but is used almost exclusively in the energy sector Goal: Material use rather than burning! • Better energy efficiency by electromobility, better heat insulation and light weight construction • Use of renewable energy • Increase mineral oil & gas reserves by improved recovery methods Range: Reserves / yearly consumption* Years Gas Mineral oil Coal * Source: Bundesanstalt für Geowissenschaften und Rohstoffe

16. Raw Material Change in Carbon Feedstocks To enable the chemical industry to replace or supplement oil, the conventional chemical raw material, with alternatives Natural gas Coal GOAL STRATEGY To develop new technologies for entry into the existing value-adding chains Examples: Reduction of CO2 by use of renewable energy, improved & new catalytic conversions Carbon dioxide Oil Biomass