As the energy transition is taking place, there is a shortfall in the supply of green and critical minerals, which can hamper this transition.
The world increasingly needs lithium, nickel, copper, cobalt and rare earth elements. As countries around the world push for more development, more technology, more batteries and carbon reduction, more ores will be needed.
To deploy the first phase of vehicle batteries, the world will need 60 times more lithium, however the amount of reserve currently known is no more than 2 times. They will need 40 times the amount of existing cobalt and 20 times the amount of existing copper.
The market for batteries for electric vehicles represents immense potential. Governments around the world have set ambitious targets to phase out combustion engine vehicles, imposing significant reductions in CO2 emissions for new car manufacturers. The new European regulation, which came into force in 2020, further encourages the electrification of modes of transport and will have a positive impact on global demand for batteries.
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