News

Doe Run sees emerging economies and technologies keeping lead in a lucrative market

Posted on 5 Jul 2010

Demand for mobile internet access, energy storage and battery-powered transportation are driving both the lead and battery industries, executives of Doe Run recently told attendees of the Battery Council International Convention in Austin, Texas. Jose Hansen, vice president, sales and marketing and Lou Magdits, director, raw materials, spoke at the conference on Doe Run’s behalf, given the company’s position as one of the world’s leading integrated lead producers.

According to Magdits, while the automotive industry has traditionally been the largest consumers of lead, use in electronic applications is increasing in the US. “Cell phone service providers are investing in batteries to increase backup storage capabilities with the expansion of 3G coverage, and implementation of 4G networks, due to increased data usage by wireless subscribers,” said Magdits. “And, storage batteries installed during Y2K will be replaced during the next few years, especially as telecom companies compete for reliability. Telecommunications will continue to be a growth factor for the lead industry into 2012.”Global production and consumption is increasing as emerging economies like China require more lead-acid batteries to fuel their growth. Because new economies depend on batteries for startup, and mature economies depend on batteries to maintain consistent power, lead-acid batteries help stabilize the lead industry. In addition, applications for lead in new hybrid vehicles, wind and solar energy, nuclear power plants and waste storage ensure a strong, long-term future. The automotive industry, however, still represents the biggest market for both battery manufacturers and lead producers, according to Hansen.

“Cars, motorcycles and electric bikes – powered or ignited by lead-acid batteries – are becoming more prevalent in the world’s most populous country,” Hansen said. “As China mobilizes more citizens, more lead will be required to power these vehicles.” Chinese car and light vehicle output increased 49% between February 2009 and February 2010, while e-bike output has reached 30 million new bikes a year, with more than 120 million e-bikes already on the road. Even with recent growth, China still has more vehicles to produce, as it lags behind North America in personal vehicles, 60 million to 300 million.

Given the need for batteries to support these vehicles, China has passed North America as the world’s largest producer and consumer of lead in the last six years. In 2009, China consumed 41% of the 8.3 Mt Pb used in the world. China was also responsible for the 42%of the 8.6 Mt produced. China’s lead production more than doubled between 2003 and 2009 as consumption caught up to production.

As the need for new and replacement lead-acid batteries rises worldwide, Doe Run is helping to supply global demand for lead through primary and secondary lead production. Doe Run’s Herculaneum Smelting Division transforms lead concentrate into some of the world’s purest lead. The facility receives and processes lead concentrate into primary lead from Doe Run’s nearby mines. Today, the site is home to the nation’s only primary lead smelter.

Doe Run is also a leading recycler and secondary lead producer. Each year, the company converts 13.5 million lead-acid batteries back into raw materials for new battery production. Operating one of the most advanced facilities in the world, Doe Run recovers and recycles nearly 160,000 t of refined lead each year. In the US, the battery industry is virtually a closed loop. “China’s increased consumption, along with emerging technology throughout the world, means the lead industry is here to stay, so long as it continues to evolve,” Hansen said. “Tighter environmental regulations may challenge supply, and the global industry must respond.”

Earlier this year, Doe Run announced a revolutionary new breakthrough in the lead production process, which replaces traditional, high-temperature lead smelting with a wet chemical process that is safer, cleaner and more efficient. Working with its technology partner, Engitec, an Italian-based company, Doe Run’s proprietary new technology uses a wet chemical process to selectively dissolve lead concentrates into solution, then extract lead from the solution using an electric current. The electrowinning process is similar to the technology used to extract zinc from concentrates, but has never been used in primary lead production. By removing traditional high-heat smelting from the equation, Doe Run’s new technology promises cleaner communities, energy independence and lead products that will power our future.