The race for so-called green energy has spawned another race, one for the minerals needed to make the devices such as solar panels and batteries that produce, store and transmit that energy. A hitherto largely unchallenged economic idea—that we will always have supplies of everything we need at the time we need it at prices we can afford—is in the process of being tested.
According to the International Energy Agency (IEA), the world will need to produce six times more of these critical metals than we are producing now to reach net zero carbon emissions by 2050, a target widely held out as an essential goal for avoiding catastrophic effects from climate change. The need for lithium—the key component in lithium batteries that are prized for light weight and the ability to charge quickly—will grow 70 times over the next 20 years, the IEA predicts.
One wonders what the price trajectories of the minerals IEA mentions will look like in the coming years. The long-term charts are concerning for nickel, lithium, cobalt and others since this appears to be just the beginning of the run-up.