Mineral Shortfall Threatens Global Energy Transition

A new report from the International Energy Agency (IEA) warns of looming shortages in critical minerals essential for clean energy technologies, CNN reported yesterday.

The world is on track to meet only 70% of global copper demand and 50% of lithium demand by 2035, the source noted, adding that investment in mining projects has grown, but at a slower pace than needed.

The IEA forecasts $800 billion in mining investment will be required by 2040 to limit global warming to 1.5°C.

Prices for lithium, cobalt, nickel and graphite have fallen, but the IEA cautions this may not continue as demand surges.

Concentration of production in few countries also raises supply chain risks, the agency has warned.

Ensuring adequate mineral supplies is crucial to accelerating the renewable energy transition and averting catastrophic climate change impacts, the report concludes.