This issue selects English articles with a certain degree of knowledge and interest from the English media that we browse every day for you to learn English and understand international financial news. If you like to read the original English text, you can skip the reference translation and read the original English text directly. Thank you for commenting, correcting, forwarding, collecting and following.
Disclaimer: This article is intended to provide an objective presentation and does not constitute investment advice.
The sharp drop in the price of minerals, which are critical to the energy transition, masks a shortage of energy minerals that could soon be caused by underinvestment, the International Energy Agency said on Friday (May 17).
In its second annual review of markets for such critical raw materials, the IEA noted that the prices of critical minerals for electric vehicles, wind turbines and solar panels fell back to pre-pandemic levels as supply increased and outpaced demand.
While falling prices are good news for consumers, the Paris-based International Energy Agency says it's hindering the investment needed to meet future demand. As many countries try to phase out the sale of gasoline-powered vehicles over the next 10 years, demand for key new energy mineral resources will soar.
The International Energy Agency, which advises advanced economies on policy advice, estimates that by 2035, only 70% of copper and 50% of lithium demand will be met by announced investment projects if countries around the world are to meet their planned environmental protection conditions.
Due to the rise in lithium prices, the world's mining giants have invested in mining, resulting in oversupply and prices falling sharply
These two metals are key raw materials for the manufacture of electric vehicles.
"Safe and sustainable access to critical minerals is essential for a smooth and affordable clean energy transition," Fatih Birol, Executive Director of the International Energy Agency, said in a statement. ”
"The world's demand for technologies such as solar panels, electric vehicles and batteries is growing fast, but we cannot meet this demand without a reliable and expanding supply of critical minerals," he added. ”
The International Energy Agency predicts that the total size of the minerals market for critical energy transitions will more than double to US$770 billion by 2040 as countries reach net-zero emissions targets by mid-century.
The demand for copper foil in the new energy industry has increased significantly
It found that only limited progress had been made in diversifying supply, which was a key issue given the recent COVID pandemic disruptions to supply chains and geopolitical tensions that created mining risks.
The IEA is calling for greater efforts to recycle materials, innovate and encourage people to make lifestyle changes to alleviate potential supply pressures.
The agency also said that about $800 billion in mining investment would be needed by 2040 for the world to limit global warming to 1.5 degrees Celsius above pre-industrial temperatures.
However, it warns that "without vigorous recycling and reuse, new mining capital requirements will need to increase by a third." ”
Energy transition risks critical mineral shortage: IEA. By Isabel Malsang and Nick Perry on AFP, May 17, 2024
The sharp drop in prices for minerals critical to the green energy transition is masking a looming shortage due to inadequate investment, the International Energy Agency said Friday.
In its second annual review of the market for such critical materials, the IEA noted prices for minerals key for electric vehicles, wind turbines and solar panels fell back to pre-pandemic levels as supplies caught up with and surpassed demand.
While the price drops are good news for consumers, the Paris-based agency expressed concern it will deter investment needed to meet demand, which is set to soar as many nations try to phase out sales of new internal combustion engine cars in the next decade.
The IEA, which advises advanced economies on energy policy, calculated that announced projects will be able to meet only 70 percent of copper and 50 percent of lithium requirements in 2035, in a scenario in which countries worldwide meet their national climate goals.
Both metals are key for manufacturing electric vehicles.
"Secure and sustainable access to critical minerals is essential for smooth and affordable clean energy transitions," IEA Executive Director Fatih Birol said in a statement.
"The world's appetite for technologies such as solar panels, electric cars and batteries is growing fast –- but we cannot satisfy it without reliable and expanding supplies of critical minerals," he added.
The IEA forecasts the combined market size of key energy transition minerals is set to more than double to $770 billion by 2040 as countries target net zero emissions by mid-century.
It found only limited progress has been made in diversifying supplies, a key issue given the recent experience with the pandemic snarling supply chains and geopolitical tensions creating risks to access.
The IEA called for stepping up efforts to recycle materials, innovate and encourage behavioural changes in order to ease potential supply strains.
It also said some $800 billion of investment in mining is required by 2040 to put the world on track to limit global warming to 1.5 degrees Celsius from pre-industrial levels.
It warned, however, that "without the strong uptake of recycling and reuse, mining capital requirements would need to be one-third higher."