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IEA says critical minerals supply could pull close to demand by 2030

(Reuters, 11 Jul 2023) Supply of minerals critical to the energy transition could move close to levels needed to support climate pledges by 2030 after a surge in investment, the International Energy Agency said on Tuesday - provided all projects go as planned.

Consultants and analysts have warned of looming shortages due to surging demand for key minerals like lithium and cobalt used in electric vehicles, wind turbines and other clean energy technologies.

But after investment in critical minerals production jumped 30% last year to $41 billion, having gained 20% in 2021, that picture is looking brighter, the IEA said.

In key battery mineral lithium, the IEA forecasts supply by 2030 will reach 420,000 metric tons - only a touch short of demand estimated at 443,000 to meet government pledges, though well below the 702,000 required for net zero.

"We are happy that for a change we can give some good news," IEA Executive Director Fatih Birol told Reuters in an interview.

"This is testimony that the markets are buying in to the fact that the clean energy transition is moving very fast."

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Reuters, 11 Jul 2023: IEA says critical minerals supply could pull close to demand by 2030