New Delhi: The International Energy Agency (IEA) reported a significant reduction in prices of critical minerals crucial for the production of electric vehicles and renewable technologies, attributing the decline to an increased supply that has outstripped demand in 2023. Despite this decrease, the IEA’s Global Critical Minerals Outlook 2024 emphasized the necessity for heightened investments to achieve the global energy and climate objectives.
According to the report, the prices for minerals such as lithium, cobalt, nickel, and graphite, essential for battery manufacturing, have fallen sharply this year, with lithium prices dropping by an unprecedented 75%, which has led to a 14% reduction in battery costs. This decrease in prices was largely due to a robust increase in global mineral supply.
However, the IEA warned that the current market conditions, while favorable, are not indicative of future trends. It projected that the demand for these minerals is set to more than double by 2040, reaching a market size of $770 billion if global efforts towards achieving net-zero emissions by mid-century are maintained.
IEA Executive Director Fatih Birol said, “Secure and sustainable access to critical minerals is essential for smooth and affordable clean energy transitions. Although the recent investment boom has been positive, there is still a significant need for ongoing investment to ensure a resilient and diversified supply.”
The report also highlighted the substantial geopolitical and supply risks associated with these critical minerals, particularly pointing out the vulnerabilities in the supply chains of lithium and copper.
