🌱 Is the use of renewable technologies increasing?
According to the IEA, “[c]lean energy technologies had another record year” in 2023. Compared to the previous year, the use of solar PV technologies and of wind turbines grew by 85% and 60% respectively in 2023. Over 40 GW of battery storage capacity was added globally in 2023, doubling the previous capacity from 2022. The sales of electric vehicles rose to nearly 14 million in 2023. This is 35% more than in the previous year, and it means that over six times the amount of electric vehicles were sold in 2023 than in 2018.
🌱 What is happening with the prices for battery materials?
According to the IEA, “[b]attery materials saw particularly large declines” in 2023. Notably, lithium spot prices plummeted by 75% from 2022 to 2023. The prices for cobalt, nickel, and graphite dropped between 30% and 45% from 2022 to 2023. Copper prices, however, stayed fairly constant by comparison.
🌱 What do critical raw material prices look like?
The prices on the critical minerals market were turbulent in 2023, and they also fell overall. According to the IEA, the lower prices were shaped in part by “demand and supply-side trends”. There was also a market correction for the “overly steep price rises in 2021-2022”. Overall, the market value for energy transition minerals narrowed by 10% (to USD 325 billion) in 2023. The decline in critical mineral prices is likely to continue in 2024.
🌱 What does the critical raw material market look like?
Despite lower prices, the growth in the actual demand for critical minerals remained robust in 2023. This can be largely tied to the increased use of “clean energy” technologies. In line with this, the demand for lithium rose by 30% in 2023, and the demand for nickel, cobalt, and graphite grew by between 8% and 10%.
🌱 What other notable trends are there?
According to the IEA, the growth in critical mineral production rates “has been accompanied by rising levels of geographical concentration”. This is particularly the case for cobalt and nickel. Additionally, while many producing countries have been intensifying their efforts to secure greater economic benefits from their critical mineral production, many consumer countries have enacted new regulations and laws to secure “an adequate and responsible supply” of critical minerals.
Read more about the global prices and demand for critical minerals here:
- https://www.iea.org/reports/global-critical-minerals-outlook-2024
- https://www.iea.org/reports/global-critical-minerals-outlook-2024/executive-summary
- https://www.iea.org/reports/global-critical-minerals-outlook-2024/market-review
- https://www.iea.org/reports/global-critical-minerals-outlook-2024/outlook-for-key-minerals