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Creating a robust and sustainable supply chain for high volume Cobalt precursors
CMC Conference May 2017Dr. Oliver Briel
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Use of Co precursors will increase in nexttechnology nodes
• Interconnects• Co liner and capping
• Cobalt as Contact replacement material• Lowers contact resistance• Offers more volume compared to Tungsten• Co allows annealing step to reduce
grain boundaries
Cobalt‘s pivotal role for continued device scaling
http://semimd.com/blog/2016/06/03/new-tungsten-barrierliner-fill-processes-reduce-resistance-and-increase-yield/http://blog.appliedmaterials.com/fins-and-wires-5nmhttp://blog.appliedmaterials.com/how-new-materials-can-solve-contact-resistancehttp://semimd.com/blog/tag/cobalt/
Source: Applied Materials
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• Umicore Introduction
• Cobalt within Umicore
• Cobalt Procurement Framework
• Umicore Precursors Activities
• Umicore Cobalt Precursors
Outline
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∼10,000 people, 66 manufacturing sites, €2.7 Bn revenues
One of three global leaders in emission control catalysts for light-duty and heavy-duty vehicles and for all fuel types
A leading supplier of key materials for rechargeable batteries used in portable electronics and hybrid & electric cars
The world’s leading recycler of complex waste streams containing precious and other valuable metals
A global materials technology & recycling group
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Unique business model
Industry leader in sustainability
Our foundations
more stringentemission control
electrification of the
automobile
resourcescarcity
Supportive megatrends
Industry leader in sustainability
metals materialsolutions
recycling
applicationknow-how
Chemistry material science
metallurgy
Unique business model
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Vertical Integration Into Metals
Fully integrated metalstechnology company
Source for Platinum Group Metals as well as Co, Ni, Zn, Bi, Ga, In, Ge, As, Sb, Se, Te,...
Recycling capabilities (i.e.urban mining)
No physical dependenceon Chinese market
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Leadership in clean mobility materials and recycling
Reliable Metals access is
crucial for our high tech products
Providing innovative solutions across industries
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Turning sustainabilityinto a greater competitive edge
The purpose is to generate more concrete benefits from our sustainability efforts eg:
We have transformed Umicore into a sustainability leader over the past 15 years
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• Sputtering Targets (Al alloys, Ti, Cu, Precious Metals, Ta, NiCr, Ni, Cr, NiV, WTi, …)
• Evaporation Materials (Oxides, Flourides, Metals, Precious Metals)
• High Purity Germanium Materials (GeCl4, wafers, …)
• Cathode Materials for Batteries (LCO, NMC, NCA)
• CVD, ALD & MOCVD Precursors
Umicore in ElectronicsConsumables for electronics, optoelectronics, display, …
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• Global production 2015: 123.000t (mainlybyproduct of Cu & Ni Industry)
• Demand for batteries currently represents >40% of the demand for Cobalt
• CAGR of >5% over past years• Additional increase in demand mainly driven by
Electrification of Automotive industry• Cobalt is sourced worldwide, but Democratic
Republic of Congo represents approximately 50%
• Overall demand and supply are in balance, however the anticipated strong growth of thedemand for batteries will effect this balance
Cobalt – an IntroductionEssential Mineral in the path towards Electrification of Automotive
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• Umicore has over 100 years of experience in Cobalt sourcing
• Umicore recycles and refines Cobalt in-house
• Umicore is active in all main Cobalt applications:• Battery Materials• Ceramics• Super Alloys• Animal Feed• Catalysts• ALD/CVD Precursors• …
Umicore as a Cobalt PlayerLargest Cobalt Transformer Worldwide
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Umicore’s Cobalt Precursor Value ChainCopper or
Nickel mine & concentrator
Umicore PMC: Co
precursors
Umicore CSM Cobalt
Refinery
Umicore CSM:
Co intermediate
Tier1 suppliers
End-Users
Supplier / mining company
OC
Co
CO
CoOC COCO
COOC
OC
COCo
OCCo C
CoCO
OC
CH
COOC
OC
CO
CPCOCO CCTBA
DCOC
?
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Challenges in Cobalt SourcingHealth & Safety even as Social and Environmental Challenges
Challenges inherently linked to Cobalt mining
Social and Environmental• Social standards should be respected during the cobalt supply
chain (child protection, anti-slavery, anti-corruption…)
• Environmental standards are required to protect environment and communities
Health & Safety• Several Cobalt substances are CLP-classified as carcinogenic
• Inhalation of cobalt is linked to the prevalence of lung diseases
• Fatal accidents happen in unsafe working conditions
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Challenges in Cobalt SourcingMore than half of the world’s cobalt reserves originates in DRC
Artisanal Small-scale Mining (ASM) vs Large Scale Mining (LSM, mechanical mined)
ASM represents approx. 20% of DRC’s Cobalt output
Umicore currently does not accept ASM in its supply chain, on the basis of:• Bad Safety and Health Conditions• Health risks related to Cobalt Exposure• Child Labor• Human Right Abuses
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Report states:• “110,000 to 150,000 artisanal miners in
Katanga region” (both for Copper and Cobalt)
• “40,000 children work in cobalt mines”
Report mentions hazardous working conditions (illness, fatal accidents…), human right abuses, bribery…
Update on Report planned in 2017
Amnesty Report (January 2016)Eye-opener for Lithium-ion Battery Users & others
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Part II – Umicore’s ApproachSustainable Cobalt Sourcing
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• Recycling of Batteries offers an additional source of Cobalt
• Umicore believes recycling to be a Sustainable Source of Cobalt, driven by
• Resource Scarcity• Legislative Restrictions• Sustainability matters
Umicore’s Closed Loop ModelUmicore’s Battery Recycling in Hoboken, Belgium
metals materialsolutions
recycling
applicationknow-how
Chemistry material science
metallurgy
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Sustainable Supply Chain of Cobalt
We want to be sure that all upstream practices are in line with Umicore’s Standards, as listed in the Umicore Sustainable Procurement Charter.
• no child or forced labour;• business ethics and compliance to law;• environmental impact;• occupational health and safety
Umicore felt the urgency to go even beyond this Charter when it comes to Cobalt sourcing.
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Sustainable Procurement Framework forCobalt
• Framework was created in 2012 • PwC collaboration• Inspired by OECD’s 5-steps process• Applied to all purchases of Cobalt in Umicore • Overarching principles and guidance by
“Approval Committee”
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Third-party Validation
• Umicore received as first company ever third-party validation for its Cobalt DueDiligence Practices
• PwC Validation for reporting year 2015• Working on 2016-validation
By demonstrating its good practices andcommunication, Umicore aims to raise the bar for all players in the Cobalt industry
Watch Umicore website for ValidationStatement and animation!
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Red flags
Child labour
Slavery / Forced labour
Torture or inhumane or degrading treatment or punishment
Supplier is not willing to accept principles stated in the Umicore charter
Evidence of bribery and corruption
Clear evidence of hand-picking and/or artisanal mining as a primary source
Orange& Red flags Definition
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Precious Metals ChemistryCompetence Portfolio for ALD / CVD / MOCVD Precursors
Handling and transformation of high value
products
Safe handling and production of
highly reactive chemicals
At commercial scale…all with the intent of enabling current & future technologies.
Ultra pure product quality &
confinement
World class analytical
capabilities
Safe handling and production of highly toxic
chemicals
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Precious Metals Chemistry Strategic Positioning of Business Electronics
Positioning tobecome the
preferredchemical
manufacturer of Tier-1 suppliers(gas companies)
Identifyingimportant growthopportunities for
Umicore
On goingdevelopment
of a commercial portfolio
of CVD & ALD precursors
Dedicated R&D, production & engineering resources
LONGTERM STRATEGY
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• GC, GC-MS • ICP-MS & ICP-OES
with detection limitsas low as 10-100ppb
• NMR, IR
Metrologyexpertise
R&DScaling Up Excellence
Advanced purificationtechnologies
State of the art scaleup to productionlevel volumes
Dedicatedin-house engineering (10 engineers)
Kilo lab forHigh Purityproducts
Scale up of toxic, sensitive& pyrophoricsubstances
Processdevelopment
10 Ph.D. Chemists10 lab technicians
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Cobalt Precursor ChemistryCPCOCO / CCTBA / …
Focus on bulk
Process chemistry
Dedicated equipment forsynthesis and
purification
Glovebox for sampling handling
packaging
Future CobaltOctacarbonyl
back integration
Safe and efficient manufacturing capabilites for multiple tons of precursors
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Other ALD/CVD and MOCVD PrecursorsAdvanced Precursors for Vapor Phase Deposition
TMGa
TBAs
W(O)(OR)4
Ru3(CO)12
(EtCp)2Ru
TMIn, TMAl – incl. Direct Vapor delivery systemTEGa, TBP
Co2(CO)8
WCl5 , WOCl4, W(CO)6
BTBMW, (iPrCp)2WH2
New Ru & Co precursors
TBTEMT
Available at scale Work in progress
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Thank you!www.pmc.umicore.com