Critical Minerals - Thematic Intelligence

Over 70 countries have set net-zero targets, and even more have pledged to lower their emissions. However, these widespread objectives for a greener future are straining supplies of natural resources, especially the minerals required to produce energy transition technologies such as electric vehicles (EVs) and solar panels. Many of these minerals are considered critical because resources are either in short supply, monopolized by individual regions, or at risk of significant supply chain disruption. Energy transition objectives will be delayed if critical mineral supply cannot meet demand.

Key Highlights

Demand for clean energy technologies has grown as their capabilities and performance have improved. The imperative to mitigate climate change has further accelerated demand, with consumers putting pressure on corporations and governments to act. Adoption has also been aided by significant reductions in cost over recent years, with solar power, as the fastest-growing energy source, surpassing 1 terawatt (TW) globally in 2022. In the transport sector, electric vehicles will account for 50% of light vehicle production by 2035. However, there are concerns that the affordability of clean energy technologies will be affected by impending shortages as mineral production struggles to keep pace with demand.

Deposits of critical minerals are typically found in specific regions of the world. For example, much of the world's lithium reserves are concentrated in South America and Australia, the Democratic Republic of the Congo (DRC) provides much of the world's cobalt, and Indonesia dominates nickel production. The race to control these mineral assets has led to intense rivalries between China, the US, and the EU, with China currently dominating the mineral supply chain and the development of energy transition technologies. The escalating rivalries have resulted in the imposition of trading sanctions by the West to level the playing field, which has disrupted global supply chains leading to market volatility.

Scope

• This report provides an overview of the critical minerals theme
• It identifies the main trends surrounding critical minerals and the energy trasition, split into three categories: technology trends, macroeconomic trends, and regulatory trends
• It includes comprehensive industry analysis, including market size forecasts for cybersecurity and analysis of patents, company filings, hiring, and social media trends
• It looks at demand-side drivers for critical minerals, including electric vehicles, solar energy, wind energy, nuclear power, and hydrogen, and supply-side risks for critical minerals, including mineral depletion, resource monopolization, geopolitics, and water stress
• The report includes analysis of critical mineral strategies by region, covering China, the US, the EU, South America, and Canada
• It also incoporates analysis of various signals, including mergers and acquisitions, social media posts, and company filings, and profiles of mining companies producing critical minerals

Reasons to Buy

• Energy transition objectives are key for curbing the harmful effects of fossil fuels on climate change. However, the rapid scale-up of clean energy technologies required to reduce carbon emissions depends upon the intensive mining of several minerals. Due to the projected increase in demand for these minerals, they are classified as critical for achieving energy transition goals
• This report provides a clear and concise introduction to the key issues surrounding critical minerals, with a specific focus on their role in energy transition.