The demand for clean energy metals is rapidly growing as many parts of the world advance the development of alternative technologies like wind turbines, solar panels, and electric vehicles. But will there be enough critical minerals for the global energy transition?
According to a new infographic by Visual Capitalist, global demand for key energy transition metals will grow by more than 400% by 2030, and supply will have a tough time keeping pace [1].
The technologies that enable the energy transition – or, as some leading energy experts would call it, further additions to our current energy supply – include batteries, solar panels, and electric vehicles.
Cobalt – Cobalt is a critical component of lithium-ion batteries, essential for electric vehicles and electronic devices like smartphones and computers.
Copper – Copper is an indispensable material for the energy transition because of its superb electrical conductivity and is used extensively in renewable power systems such as wind turbines and solar panels. It also plays an instrumental role in electricity networks.
Graphite – Graphite is an essential component of lithium-ion batteries, and its growing demand is directly linked to the adoption of electric vehicular transportation and battery-power storage systems by many countries worldwide.
Lithium – Lithium is a vital component of lithium-ion batteries, which form the backbone of energy storage for renewable energy and electric vehicle systems.
Nickel – Nickel is used in the cathodes of batteries to improve energy density and storage capacity, making it an essential part of modern battery technologies.
According to Visual Capitalist, significant supply deficits will ensue by 2030 if the global mining sector continues to grow at its current trajectory.
|
Material |
Projected Supply Deficit |
Weight of Deficit (in metric tons) |
Mining Investment Required To Balance Deficit 2022–2050 |
|
Natural Graphite |
-46% |
3.20 million |
$85 billion (for graphite and cobalt combined) |
|
Cobalt |
-42% |
0.18 million |
|
|
Lithium |
-34% |
0.26 million |
$120 billion |
|
Nickel |
-21% |
1.20 million |
$80 billion |
|
Copper |
-15% |
6.00 million |
$420 billion |
Courtesy of Visual Capitalist
Combined, the above energy transition materials will require $705 billion of new investment through 2050 to negate these projected supply deficits.
Furthermore, 75% of said investment must be made by 2030 to meet demand by 2050, according to the Energy Transitions Commission (ETC), an international think tank based in London and Visual Capitalists supporting partner for the infographic above.
Canada, home to vast mining resources, is well positioned to be a global leader and world-class producer of the critical minerals needed for the energy transition/addition, creating good jobs and supporting economic opportunities for families nationwide.
According to the Mining Association of Canada, our country already ranks as a top five global producer of 15 minerals and metals. Additionally, many of these materials are already mined in Canada, including cobalt, copper, nickel, and rare earth elements [2].
British Columbia’s mining potential is an excellent example of the immense economic opportunity Canadians have before them.
A report by the Mining Association of British Columbia found that the province’s vast wealth of mineral and metal resources, if developed, could create the following long-term economic benefits, including [3]:
At a time when Canada’s economy is struggling with declining living standards, sluggish productivity, and weak business investment, natural resource development can help turn the country around [4].
Employing over 660,000 Canadians and contributing immensely to our country’s economic output and exports, seizing the critical mineral opportunity presented by an energy transition/addition is vital for supporting the well-being of our families and communities.
Join us in exploring the massive benefits of developing the Canadian mining, energy, forestry, agriculture and fishing sectors today!
Mining industry needs USD $2.1 trillion in new investments by 2050
— Canada Action (@CanadaAction) October 5, 2024
“The report highlights that critical energy transition metals, including aluminum, copper and lithium, could face supply deficits this decade — some as early as this year.” https://t.co/7ZxJpdoPRv
SOURCES:
1 - https://www.visualcapitalist.com/sp/visualized-projected-supply-deficits-for-key-energy-transition-metals/
2 - https://mining.ca/resources/press-releases/increasing-demand-for-critical-minerals-positions-canadas-mining-industry-for-success/
3 - https://mining.bc.ca/2024/01/critical-minerals-economic-impact-study/
4 - https://chamber.ca/news/investing-in-natural-resources-sector-a-solution-to-canadas-productivity-problem-report-says/