Critical minerals are metals and non-metals that are considered essential for the economic well-being of the world's major and emerging economies. However, their supply may be at risk due to geological scarcity, geopolitical issues, trade policy or other factors.
The supply of critical minerals is essential for key clean energy technologies like electric vehicles and wind turbines. This needs to pick up sharply over the coming decades to meet the world’s climate goals. The report suggests that the energy sector’s overall needs for critical minerals could increase by as much as six times by 2040. The Agency’s Executive Director Fatih Birol believes that - currently, there is a looming mismatch between the world’s strengthened climate ambitions and the availability of critical minerals that are essential to realising those ambitions.
Therefore, governments must give clear signals about how they plan to turn their climate pledges into action. The reason is simple- By acting now and acting in unity, risks of price volatility and supply disruptions can be significantly reduced. If not, the clean energy future process might get slower and more costly.
Firstly, governments need to lay out their long-term commitments for emission reductions. This will make suppliers confident and encourage them to invest in and expand mineral production.