The International Energy Agency (IEA) is pushing for a boost in the production of critical minerals like copper and lithium in a move to accelerate the energy transition and create a more diversified energy portfolio.
According to Reuters, citing IEA chief Fatih Birol, cobalt, copper, and lithium must be supplied in abundance as electric vehicles (EVs), solar panels and other aspects of the clean energy industry rely heavily on them.
“Currently, we are A, not able to keep up with the demand, and B, the ability to manufacture these minerals is concentrated in one single country or two,” Birol shared, adding that IRA has embarked on a ‘critical minerals security program’.
IEA’s Critical Minerals Market Review 2023 revealed that the demand for materials needed for manufacturing parts for EVs, solar panels, and wind turbines has increased twice between 2018-2022, reaching $320 billion.
“At a pivotal moment for clean energy transitions worldwide, we are encouraged by the rapid growth in the market for critical minerals, which are crucial for the world to achieve its energy and climate goals,” Birol added.
Based on the IEA estimate, if all planned major mineral projects throughout the world are completed, there may be enough supply to meet the countries’ proclaimed national climate targets, Balkan Energy News reports. But there’s little space for complacency on the sufficiency of supply given the possibility of project delays and technological gaps.
To help reach the goal of net-zero emissions, in November 2022 IEA launched the Critical Minerals Policy tracker. The tracker is updated annually, and “aims to offer a valuable overview of evolving mineral supply chain governance,” IEA says.
