From 2017 to 2022, global demand for nickel increased by 40%, for lithium – threefold, for cobalt – by 70%.
These are the numbers the International Energy Agency (IEA) included in its report. Nickel, lithium, and cobalt are needed to build batteries and other elements of the renewable energy sector. According to the IEA, investment in extraction of critical minerals for renewable energy increased by 20% in 2021 and by 30% in 2022.
The market for minerals which are critical for the green energy transition reached $320 bn in 2022, twice as much as in the past five years. Furthermore, last year, critical minerals startups raised a record $1.6 bn.
The IEA believes that the implementation of all planned mining projects relating to lithium, cobalt, nickel, copper, and other resources will allow countries to deliver on their climate commitments. The IEA also states that the biggest obstacle to ramping up production of critical minerals is a limited number of supply sources. The global market for these resources is largely dependent on China, the Democratic Republic of the Congo and Indonesia, which are the largest producers of graphite, rare earth metals, cobalt and nickel.
Control over critical minerals sustainability also needs to be improved. According to the IEA, water withdrawals nearly doubled between 2018 and 2021, while greenhouse gas emissions remain high.
The market for minerals which are critical for the green energy transition reached $320 bn in 2022, twice as much as in the past five years. Furthermore, last year, critical minerals startups raised a record $1.6 bn.
The IEA believes that the implementation of all planned mining projects relating to lithium, cobalt, nickel, copper, and other resources will allow countries to deliver on their climate commitments. The IEA also states that the biggest obstacle to ramping up production of critical minerals is a limited number of supply sources. The global market for these resources is largely dependent on China, the Democratic Republic of the Congo and Indonesia, which are the largest producers of graphite, rare earth metals, cobalt and nickel.
Control over critical minerals sustainability also needs to be improved. According to the IEA, water withdrawals nearly doubled between 2018 and 2021, while greenhouse gas emissions remain high.
June, 2023
