The energy transition requires a dramatic increase in the supply of critical materials, yet their supplies chains remain vulnerable to a range of geopolitical risks.
While there is no scarcity of reserves for energy transition minerals, global capabilities for mining and refining them are limited. Supply disruptions could impact the speed of the energy transition in the short to medium term, a new report by the International Renewable Energy Agency (IRENA) warns.
Geopolitics of the Energy Transition: Critical Materials examines the geopolitical risks and opportunities linked to a growing demand for materials in the coming years and calls for a holistic approach to diversify supply chains.
While the dependency and supply dynamics fundamentally differ from fossil fuels, mining and processing of critical materials is geographically concentrated, with a few countries and few major companies playing a dominant role. External shocks, resource nationalism, export restrictions, mineral cartels, instability, and market manipulation could therefore increase the risks of supply shortages. Learn More/…
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