This doesn’t come as a big surprise.
We’ve been saying this for quite some time.
This morning, the International Energy Agency warned, “The supply of critical minerals crucial for technologies such as wind turbines and electric vehicles will have to be ramped up over the next decades if the planet’s climate targets are to be met.”
“At least 30 times as much lithium, nickel and other key minerals may be required by the electric car industry by 2040 to meet global climate targets,” they added.
That includes minerals such as nickel, cobalt, lithium, copper, and rare earth elements.
“Demand outlooks and supply vulnerabilities vary widely by mineral,” they added, “but the energy sector’s overall needs for critical minerals could increase by as much as six times by 2040, depending on how rapidly governments act to reduce emissions.”
Look at lithium for example.
At the moment, it’s seeing a severe supply crunch, as EV demand increases.
In fact, according to IEEE Spectrum, “Rystad Energy projected a ‘serious lithium supply deficit’ in 2027 as mining capacity lags behind the EV boom. The mismatch could effectively delay the production of around 3.3 million battery-powered passenger cars that year. Without new mining projects, delays could swell to the equivalent of 20 million cars in 2030. Battery-powered buses, trucks, ships, and grid storage systems will also feel the squeeze.”
Here’s the bottom line.
We have a severe supply crunch that’s not likely to let up soon. We have sky-high demand for electric vehicles, and other green products to meet climate targets. Unfortunately, we just don’t have enough supply right now, which is sending mineral prices higher along with related stocks and ETFs, like the Global X Lithium & Battery Technology ETF (LIT).
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