The International Atomic Energy Agency (IAEA) has warned that high product prices could delay the transition to clean energy due to the amount of metals needed. Battery, Solar panels and wind turbines.
According to the IEA, mineral demand will quadruple by 2040 as a result of the Paris Climate Agreement. However, the lack of investment in new mines risks significantly increasing the cost of clean energy technology, according to a report released on Wednesday.
Fatih Biral, executive director of the IEA, told the Financial Times: “Meeting the climate target will reduce the demand for critical minerals. “It simply came to our notice then [the energy transition] Rising spending could slow down ”
Prices for products – starting from lithium Cobalt – Demand for clean fuel technology has increased this year and the government has rallied to create a green stimulus package. According to the IEA, sales of electric cars rose 41 percent last year, with nearly 300 million sales worldwide.
“To have adequate electric cars, window turbines, hydrogen, solar, batteries – we need critical minerals for them to be affordable, otherwise it will be a huge obstacle to reaching our climate goals,” Biral said.
The team of raw materials used in batteries is expected to increase the demand the most, the report said. Demand for lithium will increase more than 40 times if countries meet the goals of the Paris Agreement.
The IEA, founded in 19 IEK to ensure the security of global oil supplies in the wake of the first Arab oil embargo, said critical minerals have now become key to countries’ energy security.
According to the IEA, the production of critical minerals required for clean energy technology was much more concentrated than in the Tat market. The Democratic Republic of the Congo, for example, produces more than 60 percent of the world’s cobalt supply, a critical battery component.
“Concerns about price volatility and supply security do not disappear in an electrified, renewable-enriched energy system,” it said.
Rarely warned that higher product prices could outpace the cost reduction achieved by increasing production in clean energy technologies such as batteries. If the price of lithium and nickel doubles, the cost of producing lithium-ion batteries for electric vehicles will increase by 6 percent.
Copper prices rise, which Injury Bearl added that last week’s ten-year high of more than ten thousand dollars could add half a trillion dollars to spending to reach the climate target in the next two decades.
Yet investors are not investing enough in new mines. The IEA wrote that it takes an average of more than 1 16 years to go from the discovery of a mining project to the first production, now the investment is needed,
“Investors are still not convinced that governments are serious [about] Reaching their climate goals, “Biral said.” There are not enough strong and clear enough signals given by policymakers about the pace and determination of energy change. ”