EVs, renewable energy fuel mining tire growth

With increasing demand for metals and minerals, the largest group of OTR tire applications (mining, construction and ports and handling) are forecast to grow 5.6 percent CAGR globally over the next five years, according to Smithers Group, a tire research and testing company.

In North America, mining/construction/port tires account for an estimated three-fifths of the OTR market, but are expected to only grow 2.9 percent CAGR by 2029.

However, the U.S. government's push for more electric vehicles (EVs) and renewable energy technologies has been a boon for the mining industry, according to Smithers.

The transition from fossil fuels to metal and minerals for renewable energy and EVs is creating new opportunities for mining tires, Smithers reported, noting a new lithium deposit was discovered in Wyoming that may support further growth.

Meanwhile, Canada's mining sector continues to stay strong with construction-related mining to address increased infrastructure spending.

In an effort to improve efficiency and productivity, mines are turning to larger equipment that can carry more load for longer distances.

Since radial tires can offer heat dissipation and cut resistance, Smithers predicts there will be a continued trend away from lower-cost bias tires to more expensive radial tires in North America.

Mason Hess, director of global mining for Purcell Tire & Service Centers, expects an "excellent" year in mining tire sales in 2024 as the inflation bubble seems to be over and copper mining has increased.

However, the dealership is contending with shortages in some key tire sizes and the overall nervousness in the industry during a presidential election year.

Brian Thompson, an executive officer with H&H Industries, an OTR tire retreader, said that people don't purchase as much when they are nervous about an election year. "They are tighter with their money," he said.

"I think (mining) is doing fairly well. As a matter of fact, I honestly believe there is a bit of a resurgence—the lithium and rare earth metals, various things that are coming on. I'm sensing that there's a bit more excitement" Bruce Besancon, vice president of marketing at Yokohama Off-Highway Tires America Inc. (YOHTA), said.

"In North America, we haven't really permitted that many new mines. We've been building on the mines that have been there and, by the way, they didn't go away. They're still continuing.

"Despite all the environmental activities that go on, in fact, they're getting much smarter about that as well. But now we're seeing some lithium type mines and the other heavier metals both in the United States and across the globe. I think mining is set up pretty well," Besancon said.

"Actually, I think it's better than last year. It's one of the few areas that I don't think really took too much of a dip. And we see it being a key focus area going forward."

Everything revolves around efficiency, Besancon said.

"That's the one thing we are seeing that, in many cases, the mines want to run faster, faster and further, and carry more load. The sad thing is, I've been in this business for 34 years, and I've been able to say that 34 yearly times," he said jokingly.

"The efficiency of today is not the efficiency that we had 30 years ago. And what I think is a great thing about our industry is that our industry has been able to make, in some cases step changes, but a continuous evolution of continuous improvement. And that goes both from the machine side and the tire side," he said.

Besancon noted that technologies such as autonomous machinery are becoming more of a reality.

"And it will present some unique challenges in mining tires for us, for all manufacturers," he said.

"If (the autonomous vehicle) goes on the same track and it hits a rock in one location and it's not cleaned up, it's going to hit that rock again and again and again. So it goes to the maintenance of the site. And then the vehicle has to be able to sense, 'Is there an issue going on with the tire?' And that's got to be related back somewhere.

"Whereas maybe a driver could see something, sense something, feel something, we no longer have that intuitiveness and we're going to have to rely much more on data and big data to derive those things," Besancon said.

Yokohama is working on several new radial tires for the mining and earthmover segment that will be introduced throughout the year.

BKT USA Ltd. also plans to introduce larger mining tires this year at the Mine Expo in September as it targets the larger equipment fitments, ranging up to 57-inch rim diameter.

Much like the coattail effect of motorsports for passenger tires, BKT believes becoming one of the few manufacturers to produce large mining tires will create a positive impression for the company's smaller tires, according to Chris Rhoades, BKT USA Inc.'s vice president for the medium and large OTR sector.

"If and when a manufacturer can make a tire that will withstand those large Caterpillar needs, large mining needs, then all of a sudden it's like you can almost assume that all the tires down the line and the smaller versions you make, that these are good.

"There's not a lot people that just crossed that threshold to get into that large mining and get a tire that will run and work well. So there's extreme pressure and a lot of competition that's out there," he said.

Rhoades said BKT is also offering more tires for underground mining.

"That's its own little subculture of the overall off-road industry. We've got a pretty comprehensive lineup already but we're going to be adding some new underground mining tire sizes this year, as well."