The increasing use of clean energy technologies has fueled demand for critical raw materials such as lithium, cobalt, nickel and copper. The market for minerals and co, needed to power electric vehicles, wind turbines, solar cells and other key technologies for the energy transition, has doubled in the past five years, according to a new report from the International Energy Agency (IEA).
According to the report, investment in critical mineral development is up 30 percent in 2022, after growing 20 percent in 2021. Among minerals, lithium saw the largest increase in investment, up 50 percent, followed by copper and nickel . According to the IEA, the market volume for critical minerals recently reached USD 320 billion (about EUR 290 billion).
“At this critical stage of the world’s clean energy transition, we are empowered by the rapid growth of the market for critical minerals, which are vital to meeting global energy and climate goals,” said Fatih Birol, executive Director of the IEA. “However, major challenges remain. Much more needs to be done to ensure that critical mineral supply chains are safe and sustainable.”
Risk of delays and bottlenecks
If all critical mineral projects planned around the world come to fruition, the IEA’s analysis suggests that supply could be sufficient to meet national climate commitments announced by governments. However, the risk of project delays and bottlenecks remains. Moreover, in a scenario limiting global warming to 1.5 degrees, more projects would be needed by 2030.
The IEA is critical of the lack of competition in the market – many new project announcements come from companies that already dominate the market. As of 2019, the top three producers of critical minerals have either remained flat or continued to increase their share, particularly for nickel and cobalt.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
