Mining needs to be stepped up to meet net-zero targets
Source: Middle East Insurance Review | Aug 2023
The world will have to mine more lithium, copper and nickel with urgency if it wants to hit its net-zero goals, according to the International Energy Agency (IAE).
The IEA has said more mining of critical minerals was necessary to ensure decarbonisation goals are met, warning that a target to limit global warming was at risk without further investment in extraction. IEA said while investment has stepped up markedly in recent years, more projects would in any case be needed by 2030 in a scenario that limits global warming to 1.5 degree Celsius.
The agency has also called for more investment to help diversify supply chains and end reliance on China and Australia, the two biggest critical mineral sources in the world. Lithium in particular is central to the net zero transition given its importance in battery manufacture.
As car makers, solar panel manufacturers and other industries driving the shift to carbon-free power rely on the metal, demand has grown quickly and is likely to surge further because of the sheer volume needed to reach net zero. Other minerals needed for the net zero transition include nickel, cobalt, manganese and graphite.
The market for critical minerals swelled to $320bn last year and investment in mining is growing quickly – up 30% last year. M