Insufficient Global Mineral Production Threatens Clean Energy Goals
A recent report from a United Nations agency has highlighted the alarming gap between current production levels of essential minerals and the growing demand for clean energy technologies. The study, conducted by the UN Trade and Development, indicates that key minerals like lithium, cobalt, and nickel are significantly underproduced to meet global climate goals.
According to the report, the demand for lithium is projected to increase by over 1,500 percent by 2050, with similar spikes anticipated for other minerals crucial for manufacturing solar panels, wind turbines, and electric car batteries. The report warned that global investments in critical energy transition minerals are failing to keep pace with the escalating demand.
The UN identified 110 new mining projects worldwide, valued at $39 billion, with $22 billion invested in 60 projects in developing countries. However, to achieve net-zero emissions by 2030, the report suggests that 80 new copper mines, 70 new lithium mines, 70 nickel mines, and 30 cobalt mines would be required.
The study further emphasized the need for investments ranging from 360 billion to 450 billion euros between 2022 and 2030 to bridge the production gap. Developing economies, particularly in Africa, were highlighted as having significant opportunities due to their abundant mineral reserves.
The UN urged developing countries to enhance the local value added of their mining operations to capitalize on the expanding demand for critical materials. It noted that African and Latin American countries have yet to become major players in the manufacturing of battery components, emphasizing the need for increased local processing.
The report cited the example of the Democratic Republic of Congo, which saw a significant increase in cobalt prices by refining the mineral locally. By transforming cobalt on-site, the country boosted its earnings from $5.80 to $16.20 per kilogram.
In conclusion, the report underlined the critical need for a coordinated global effort to ramp up mineral production to support the transition towards clean energy technologies and achieve climate goals.
