Released October 05, 2023 | SUGAR LAND
en
Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--Critical minerals, such as copper, lithium, nickel and cobalt, are indispensable ingredients in the global drive for cleaner energy. But those minerals are unevenly distributed around the world. In general, mining for lithium and cobalt is in an earlier stage of development, when compared with copper and nickel. Demand for all four is expected to grow, but there are concerns over supply, price and the durability of supply chains for each mineral.
To forge collaborative global action on critical minerals, the International Energy Agency (IEA) (Paris, France) convened a first-ever summit meeting last week attended by dozens of government officials, industry leaders, investors and non-governmental organizations to identify steps needed to create secure, sustainable and responsible supply chains for these four critical minerals.
"The level of over-concentration that we see in critical minerals markets today is unlike that for any other major commodity we have come to rely on in the modern world," said IEA Executive Director Fatih Birol. "History has shown us that failing to properly diversify supplies and trade routes of essential resources comes with profound risks."
The summit, held September 28, builds on the IEA's work in critical minerals, including its first annual analysis of critical minerals, released this past summer. For more on that report, see July 12, 2023, article - IEA: Will Critical Minerals Supply Be Able to Meet Projected Demand? The agency also created an interactive tracker where users could investigate various aspects of copper, nickel, lithium and cobalt.
The Paris-based agency pointed out that an energy system powered by clean energy technologies differs significantly from one fueled by traditional hydrocarbon resources. Critical minerals such as copper, lithium, nickel and cobalt (along with rare earth minerals) are essential components in many of today's rapidly growing clean energy technologies, such as wind turbines, solar photovoltaic (PV) generation, electric vehicles and electricity networks. Demand for these minerals is growing quickly as clean energy transitions gather pace.
Solar PV plants, windfarms and electric vehicles generally require more critical minerals to build than their fossil fuel-based counterparts, the agency said. A typical electric car requires six times the mineral inputs of a conventional car, and an offshore wind plant requires 13 times more mineral resources than a similarly sized gas-fired power plant. In a market increasingly dominated by renewable generation, the demand for mineral resources has doubled.
Click on the image at right to see the IEA's prediction for growth trends for solar PV, wind power and electric vehicles, taken from the IEA's July 2023 report on critical minerals.
Those attending the IEA September 28 summit shared experiences and discussed effective courses of action on critical minerals to ensure rapid and secure energy transitions, the agency said in a statement. It added that governments around the world asked it to make recommendations on options to diversify supplies of critical minerals and clean energy technology manufacturing.
Record deployment of clean energy technologies is driving significant demand growth for critical minerals such as lithium, cobalt, nickel and copper, the IEA noted. Summit attendees identified six key actions that should lead to a more secure, sustainable and reliable supply network for critical minerals:
Given their importance to the world's clean energy transition, critical minerals are expected to be discussed at the U.N. climate change conference summit later this year in Abu Dhabi.
The IEA's September 28 statement on the summit had this added detail on the recommended six key actions to build a more robust critical minerals supply network:
Accelerate progress towards diversified minerals supplies: To support countries' climate and clean energy ambitions, it will be necessary to significantly increase supplies of many minerals and metals. Delegates agreed on the need to accelerate progress toward diversified and sustainable supplies of critical minerals, in order to create a secure and diversified market that can help meet nations' goals to reach net-zero by 2050 and limit global warming.
Unlock the power of technology and recycling: The IEA stressed the importance of leveraging technology and recycling to reduce potential strains on supply. New technology can reduce energy and water requirements in mineral extraction and processing. It also can optimize extraction methods, product design and end-of-life processes to improve resource efficiency. The IEA is committed to preparing an in-depth study on mineral recycling that will include electronic waste, industry scrap, end-of-life batteries, wind turbines and permanent magnets.
Promote transparency in markets: Greater transparency is needed for markets to mature. Some critical minerals markets are characterized by limited price transparency that can introduce volatility and hinder new investments. Consumers are seeking more information about risks throughout the supply chain. The summit attendees participants emphasized the need to promote transparent markets that facilitate new investments by reinforcing due diligence and traceability practices. The IEA's Critical Minerals Market Review, released this past July, will be produced on a regular basis.
Enhance the availability of reliable information: Creating transparent critical minerals markets requires reliable, verifiable and up-to-date data on production, demand and price. Right now, that does not exist. The IEA will work with partners to find ways to gather and disseminate accurate and current data on critical minerals.
Create incentives for sustainable and responsible practices: Summit participants highlighted the importance incentivizing sustainable and responsible production of critical minerals. One way to do that would be to reward environmental, social and governance (ESG) efforts. Another would be to accelerate approvals of new facilities without loosening legal and regulatory protections.
Foster international collaboration: A recurring theme throughout the Summit was that demand growth for critical minerals cannot be solved by any one country or company. Strengthening efforts on international collaboration among governments, market participants and non-governmental organizations is crucial to meet these challenges in an inclusive manner.
The agency will revisit critical minerals at next February's Ministerial Meeting, which will mark the 50th anniversary of the IEA's founding.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
To forge collaborative global action on critical minerals, the International Energy Agency (IEA) (Paris, France) convened a first-ever summit meeting last week attended by dozens of government officials, industry leaders, investors and non-governmental organizations to identify steps needed to create secure, sustainable and responsible supply chains for these four critical minerals.
"The level of over-concentration that we see in critical minerals markets today is unlike that for any other major commodity we have come to rely on in the modern world," said IEA Executive Director Fatih Birol. "History has shown us that failing to properly diversify supplies and trade routes of essential resources comes with profound risks."
The summit, held September 28, builds on the IEA's work in critical minerals, including its first annual analysis of critical minerals, released this past summer. For more on that report, see July 12, 2023, article - IEA: Will Critical Minerals Supply Be Able to Meet Projected Demand? The agency also created an interactive tracker where users could investigate various aspects of copper, nickel, lithium and cobalt.
The Paris-based agency pointed out that an energy system powered by clean energy technologies differs significantly from one fueled by traditional hydrocarbon resources. Critical minerals such as copper, lithium, nickel and cobalt (along with rare earth minerals) are essential components in many of today's rapidly growing clean energy technologies, such as wind turbines, solar photovoltaic (PV) generation, electric vehicles and electricity networks. Demand for these minerals is growing quickly as clean energy transitions gather pace.
Solar PV plants, windfarms and electric vehicles generally require more critical minerals to build than their fossil fuel-based counterparts, the agency said. A typical electric car requires six times the mineral inputs of a conventional car, and an offshore wind plant requires 13 times more mineral resources than a similarly sized gas-fired power plant. In a market increasingly dominated by renewable generation, the demand for mineral resources has doubled.
Click on the image at right to see the IEA's prediction for growth trends for solar PV, wind power and electric vehicles, taken from the IEA's July 2023 report on critical minerals.Those attending the IEA September 28 summit shared experiences and discussed effective courses of action on critical minerals to ensure rapid and secure energy transitions, the agency said in a statement. It added that governments around the world asked it to make recommendations on options to diversify supplies of critical minerals and clean energy technology manufacturing.
Record deployment of clean energy technologies is driving significant demand growth for critical minerals such as lithium, cobalt, nickel and copper, the IEA noted. Summit attendees identified six key actions that should lead to a more secure, sustainable and reliable supply network for critical minerals:
- Accelerating progress towards diversified minerals supplies
- Unlocking the power of technology and recycling
- Promoting transparency in the markets
- Enhancing the availability of reliable information
- Creating incentives for sustainable and responsible production
- Strengthening efforts on international collaboration
Given their importance to the world's clean energy transition, critical minerals are expected to be discussed at the U.N. climate change conference summit later this year in Abu Dhabi.
The IEA's September 28 statement on the summit had this added detail on the recommended six key actions to build a more robust critical minerals supply network:
Accelerate progress towards diversified minerals supplies: To support countries' climate and clean energy ambitions, it will be necessary to significantly increase supplies of many minerals and metals. Delegates agreed on the need to accelerate progress toward diversified and sustainable supplies of critical minerals, in order to create a secure and diversified market that can help meet nations' goals to reach net-zero by 2050 and limit global warming.
Unlock the power of technology and recycling: The IEA stressed the importance of leveraging technology and recycling to reduce potential strains on supply. New technology can reduce energy and water requirements in mineral extraction and processing. It also can optimize extraction methods, product design and end-of-life processes to improve resource efficiency. The IEA is committed to preparing an in-depth study on mineral recycling that will include electronic waste, industry scrap, end-of-life batteries, wind turbines and permanent magnets.
Promote transparency in markets: Greater transparency is needed for markets to mature. Some critical minerals markets are characterized by limited price transparency that can introduce volatility and hinder new investments. Consumers are seeking more information about risks throughout the supply chain. The summit attendees participants emphasized the need to promote transparent markets that facilitate new investments by reinforcing due diligence and traceability practices. The IEA's Critical Minerals Market Review, released this past July, will be produced on a regular basis.
Enhance the availability of reliable information: Creating transparent critical minerals markets requires reliable, verifiable and up-to-date data on production, demand and price. Right now, that does not exist. The IEA will work with partners to find ways to gather and disseminate accurate and current data on critical minerals.
Create incentives for sustainable and responsible practices: Summit participants highlighted the importance incentivizing sustainable and responsible production of critical minerals. One way to do that would be to reward environmental, social and governance (ESG) efforts. Another would be to accelerate approvals of new facilities without loosening legal and regulatory protections.
Foster international collaboration: A recurring theme throughout the Summit was that demand growth for critical minerals cannot be solved by any one country or company. Strengthening efforts on international collaboration among governments, market participants and non-governmental organizations is crucial to meet these challenges in an inclusive manner.
The agency will revisit critical minerals at next February's Ministerial Meeting, which will mark the 50th anniversary of the IEA's founding.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
