Building blocks of a decarbonized world
Mined commodities like lithium, cobalt, graphite, and rare earths are critical to producing EVs, wind turbines, and other technologies necessary to burn fewer fossil fuels. As a result, the extraction and refining of these metals will need to be expedited to limit the rise of global temperatures.
A Challenge to Satisfy the Demand for Lithium
Lithium demand in an AET scenario is estimated to reach 6.7 million tons by 2050, nine times more than 2022 levels. In the same scenario, EV sales will double by 2030, making the demand for Li-ion batteries quadruple by 2050.
The ESG Challenge with Cobalt
In an AET scenario, cobalt demand from battery applications is estimated to be 40% higher by 2050.
Increasing production comes with significant environmental and social risks, as cobalt reserves and mine production are concentrated in regions and countries with significant ESG problems.
Rare Earths: Winners and Losers
The demand for rare earths in an accelerated energy transition is forecasted to increase by 2050, with existing producers impacted by a short- to medium-term supply deficit.
The availability of critical minerals including lithium, nickel and cobalt for batteries has long been an area for concern. But technological breakthroughs mean that batteries without nickel or cobalt are now a highly competitive option for electric vehicles. And meanwhile batteries without lithium are starting to emerge as viable possibilities.
