Rising Demand for Aluminium in Automobile Industry to Fuel Growth of Bauxite Market
Stringent government regulations on carbon dioxide emissions have compelled automobile manufacturers to produce fuel-efficient lightweight vehicles; thus, superior properties of aluminium have resulted in its increased adoption in automotive industries to manufacture lightweight vehicle parts. As a result, an increase in aluminium usage drives the growth of the bauxite market. According to the International Energy Agency (IEA), global electric car sales will have more than doubled to 6.6 million in 2021, accounting for over 9% of global car sales, up from 3 million in 2020 and 4.1% of total car sales.
The demand for aluminium is expected to rise due to favourable government regulations for electric vehicles (EVs) and increased investment in the development of lightweight automobiles. This trend is likely to be beneficial to the bauxite industry's growth over the forecast period. For instance, in February 2022, Volvo Cars has decided to invest in aluminium mega casting at its Torslanda plant in Sweden. The investment is worth USD 1.1 billion, and the mega casting simplifies the manufacturing process while lowering the overall environmental footprint.
Rising demand for aluminium flat-rolled products in the automotive industry is forcing manufacturers to increase production capacity, driving up demand for bauxite. In October 2021, Novelis Inc., a leading manufacturer of aluminium flat-rolled products, announced a USD 30 million investment in its Oswego plant.
High Chemical Stability of Bauxite to Fuel Metallurgical Grade Category in Bauxite
Alumina production is expected to have the largest revenue share of the global bauxite market. Alumina is derived from bauxite and is widely used in a variety of industries due to properties such as high chemical stability in a variety of environments, high melting point, hardness strength, and electrical resistance. One of the market's most important application segments is refractory. It is a material used inside a furnace to protect the structures from corrosion and high temperatures. Steel, glass, ceramics, cement, and petrochemicals are all industries that use refractories. Cement is another application segment of the market that is expected to grow rapidly over the forecast period. The bauxite residue is being used as an additive in the manufacture of Portland cement clinkers. Greece, India, Ukraine, China, Moldova, Georgia, and Russia are among the major countries that currently use bauxite residue in their cement sectors. The manufacturers are working with the cement industry to create cement from bauxite residues.
Growing Environmental Protection Measures in North America to Drive Growth Bauxite Market
The Asia Pacific region is expected to have the largest revenue share of the global market. The rising demand for aluminium in the EV, packaging, and construction industries is expected to drive bauxite demand during the forecast period. Furthermore, because of its high melting point, bauxite is in high demand as a raw material in the manufacture of refractory products. Bauxite is also used to make cement by combining it with limestone. The cement produced has a high alumina content and is known for its quick settling time and strength, resulting in an increase in bauxite demand in the region. With it's high melting point, bauxite is in high demand as a raw material in the manufacture of refractory products. Bricks made from refractory grade bauxite are used to line the roofs of electric arc steel making furnaces and blast furnaces.
Moreover, the demand for bauxite in the region continues to rise in nations like China and India, owing to fast industrialisation and a growth in the use of aluminium in diverse industries like building and construction, foil, and packaging. Furthermore, increase in the use of aluminium for light vehicle parts is driving the bauxite market in the region. China is expected to produce more than 10 million electric vehicles by 2022, which may increase demand for aluminium for light weight vehicle body parts, stimulating the region's bauxite market. Similarly in December 2021, Bajaj Auto has announced a US$40 Bn investment in a new electric vehicle manufacturing in India. The factory will generate 500,000 electric vehicles each year.
North America is expected to grow the fastest during the forecast period. The presence of numerous end-users in the region, as well as large-scale automobile plants, a robust construction industry, and infrastructure developments, are propelling alumina demand, which is expected to benefit bauxite demand in the forecast period. The U.S. holds the majority of the North American bauxite market. Aluminium and cement production expansion is expected to benefit market growth. According to the US Geological Survey, global bauxite resources are estimated to be between 55 billion and 75 billion tonnes, enough to meet global demand for metal well into the future. Similarly, according to the World Bureau of Metal Statistics, aluminium production in Canada in 2019 is expected to be around 2.9 million metric tonnes.
Global Bauxite Market: Competitive Landscape
Companies in the market are introducing new products alongside initiation collaborations, alliances, and partnership agreements. For instance, in February 2022, India's Vedanta Aluminium decided to collaborate with the cement industry to use their bauxite residue to make cement. On the other hand, in February 2020, Guyana Industrial Minerals Inc. (GINMIN), a subsidiary of the US-based First Bauxite, began mining operations and a processing plant at the Bonasika mine in the Essequibo Islands-West Demerara region. A US$ 100 million investment guarantee can transform it into a world-class operation.
A few of the players in the Bauxite market include Alcoa Corporation, Rio Tinto, Aluminum Corporation China Limited (CHALCO), Norsk Hydro ASA, South32, Rusal, NALCO India, Hindalco Industries Ltd, and Emirates Global Aluminium PJSC.
Global Bauxite Market is Segmented as Below:
Key Elements Included In The Study: Global Bauxite Market
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