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illuminem summarizes for you the essential news of the day. Read the full piece here in The Financial Times or enjoy below
🗞 Driving the news: Investments in critical minerals, key to clean energy technologies, rose by 30% to surpass $40bn last year, led by a surge in Chinese spending, according to the International Energy Agency (IEA)
• The agency warns, however, that attempts to diversify the supply sources of metals such as lithium, nickel, and cobalt have stumbled
🔭 The context: The increased demand for these minerals, necessary for powering electric cars, wind turbines, and solar panels, has put pressure on supply chains
• As a result, nations are rushing to secure resources, raising concerns over control and dominance in the market
🌏 Why it matters for the planet: High levels of emissions and water consumption typically needed for metal extraction are two significant concerns, alongside a growing reliance on a small number of countries for processing
• The surge in demand for critical minerals, while aligned with clean energy ambitions, comes with environmental and geopolitical risks
⏭️ What's next: The IEA suggests that if all announced projects to develop these resources are delivered on time, supply should be sufficient to maintain national climate pledges by 2030
• Nevertheless, they also highlight the high probability of delays due to permitting issues, funding challenges, and technical risks
💬 One quote: "We are less worried than we were two years ago in terms of availability of critical minerals." (Fatih Birol, IEA executive director)
📈 One stat: The critical minerals market, which was worth $320bn in revenue last year, doubled in size in the previous five years, in part because of higher prices
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