The shift to clean energy is expected to greatly increase the demand for key minerals. These minerals are crucial for solar, wind, and electric vehicles (EVs). The International Energy Agency (IEA) says mineral demand could jump four times by 2040 to meet clean energy goals. Lithium is expected to see the biggest growth, more than 40 times the current levels.
This high demand will likely outstrip current supply and investment plans. This raises worries about price swings and the security of these vital materials.
Key Takeaways
- Demand for minerals in EVs and battery storage is expected to grow at least thirty times by 2040.
- Lithium demand is projected to grow over 40 times by 2040, followed by graphite, cobalt, and nickel growing around 20-25 times.
- Raw material costs, including lithium and nickel, now account for 50-70% of total battery costs.
- Battery deployment needs to increase sevenfold by 2030 to achieve COP28 targets.
- Lithium-ion batteries have achieved a remarkable 90% cost reduction since 2010.
The Critical Role of Minerals in Clean Energy Transitions
Minerals are key to moving to clean energy. Solar, wind, and electric vehicles need more minerals than old fossil fuel tech. For instance, an electric car uses six times more minerals than a traditional car. An onshore wind plant needs nine times more minerals than a gas plant.
Minerals Used in Clean Energy Technologies
Each clean energy tech uses different minerals. Lithium, nickel, cobalt, manganese, graphite, rare earth elements, copper, and aluminum are vital. The energy sector is now a big part of the mineral market. By 2040, clean energy will take over 40% of copper and rare earth elements demand, and 60-70% of nickel and cobalt demand if we follow the Paris Agreement.
| Mineral | Application in Clean Energy | Demand Growth Projection by 2030 |
|---|---|---|
| Lithium | Electric Vehicles, Stationary Storage | 318% |
| Nickel | Electric Vehicles, Wind Turbines | 104% |
| Cobalt | Electric Vehicles, Batteries | 90% |
| Graphite | Battery Anodes | 180% |
| Rare Earth Elements | Wind Turbines, Electric Motors | 59% |
| Copper | Renewable Energy Infrastructure | 27% |
The energy sector is now a big player in the mineral market. This highlights the need for responsible sourcing and advanced material science in the energy transition. The critical role of these minerals in energy security shows the importance of sustainable and resilient supply chains.
Battery Age Minerals Ltd Price Prediction: Soaring Demand Outpacing Supply
The clean energy movement is speeding up, making lithium, cobalt, and nickel more in demand. This surge in demand is challenging the supply of these key minerals. Current investments and production levels are struggling to keep up.
Experts say the supply and demand balance for these minerals often lags and swings in price. This could slow down clean energy transitions and raise costs if it happens again.
The demand for battery minerals is growing fast. By 2040, EV battery demand is set to hit 5.9 TWh annually. The NMC battery type will dominate the market. But, new battery tech like solid-state batteries could change how we use these minerals in the future.
| Mineral | Supply and Demand Outlook |
|---|---|
| Lithium | Fitch Solutions predicts the world’s lithium production will triple between 2020 and 2030, reaching 1.5 million tonnes. Analyst Li Jiahui forecasts downward pressure on lithium prices in 2024 and 2025 as new supply sources exceed demand. Albemarle Corp., the largest lithium producer globally, highlighted that current price levels pose a threat to higher-cost projects, leading to cancellations or delays in new mines or refineries. |
| Cobalt | Cobalt is expected to face demand outpacing supply from 2026 according to Benchmark Mineral Intelligence. |
| Nickel | Forecasts from Benchmark Mineral Intelligence indicate an oversupply of nickel for the next few years, with the nickel market not projected to be in deficit until 2027. Indonesia, responsible for over half the world’s nickel production, may take policy steps to boost prices according to Citigroup Inc. |
| Graphite | Wood Mackenzie forecasts battery sector demand for raw material graphite to rise by over 1,400% between 2020 and 2050. Graphite flake prices are currently 33% higher than they were a year ago. Benchmark Mineral Intelligence predicts a shortfall of roughly 20,000 tonnes of graphite in the current year, which is enough to produce around 250,000 electric vehicle batteries. |
The push for clean energy is making battery age minerals like lithium, cobalt, and nickel more sought after. This is outpacing the supply, affecting the commodity market trends and the mining industry outlook. Companies like Battery Age Minerals Ltd face both challenges and opportunities in this changing landscape.
Conclusion
This article shows how minerals are key for Australia’s shift to clean energy. But, there are big hurdles in getting these materials. The demand for minerals like those in lithium-ion batteries and renewable energy is growing fast. This could lead to unstable prices and worries about getting enough materials.
To fix these issues, we need teamwork between policymakers, mining companies, and users. They must work together on investing, innovating, and making supply chains strong. The changing types of battery technologies will also affect how we use minerals in the future. So, being flexible and adaptable is crucial for the industry.
As we move towards clean energy, focusing on sustainable battery material supply chains is vital. This will help the clean energy sector grow and create new jobs in mining in Australia. By facing challenges together, we can make a better and wealthier future for everyone.