IEA warns of battery materials shortages

The International Energy Agency (IEA) has published a report concluding that without substantial government action, there will be a shortage of key raw materials for clean energy technologies such as electric vehicles, battery-based energy storage, and wind turbines. The report focuses on cobalt, copper, lithium, nickel, and rare earth elements. The IEA forecasts an overall quadrupling in demand for these and related minerals by 2040. Lithium is set to experience the fastest growth in demand, with a 40-fold increase by 2040. Without government intervention, these raw materials will experience price volatility, geopolitical influence, and supply disruptions that could hamper efforts to tackle climate change, the IEA states. The agency recommends six steps that policy makers should take to prevent raw material bottlenecks, including long-term commitments for emission reduction to give suppliers the confidence to invest in manufacturing capacity. Other steps are government promotion of new technology and the scale-up of recycling, the IEA says.