The Critical Minerals Race

“Demand for vital resources such as lithium, copper, cobalt and nickel is expected to more than double by 2030, as the world rushes to build electric vehicles, wind turbines and solar panels in mushrooming quantities”

“Investment in developing these raw materials rose by 30 per cent last year to more than $40bn, according to a report this week from the International Energy Agency”

“If all announced projects are delivered on time, the IEA forecasts supply to be sufficient to keep national climate pledges on track by 2030”

“First, China dominates critical mineral extraction and refining to an astonishing degree. Last year, its companies doubled their investment spending, compared with a 25 per cent increase on average for western mining groups such as BHP, Anglo American and Glencore. China also accounts for about 60 per cent of the world’s lithium processing”

“Second, the west’s mining sector cannot solve critical mineral shortages on its own. Price volatility makes extraction risky; some rare raw materials also suffer from poor price transparency given limited public trading. China’s first-mover advantage in some countries as well as state support means it is competitive even when prices slump”

“Finally, while national initiatives are emerging, co-ordination between western partners is key. Joint financing efforts could help bring scale to projects”