"Rapidly Rising Demand for Critical Minerals Threatens Energy Transition, IEA Warns"

The International Energy Agency (IEA) has reported a significant surge in demand for critical minerals, such as lithium, cobalt, and nickel, driven by the energy sector's growing needs for low and zero-emission technologies. Investment in critical minerals development has also increased, with a particular focus on lithium, copper, and nickel. However, concerns over supply remain, as delays in projects and technology-specific shortfalls pose challenges to meeting climate pledges. The IEA emphasized the need for additional projects to limit global warming to 1.5 degrees Celsius. Geopolitically, China leads in the extraction and processing of critical minerals, but supply source diversification has been limited. The sustainability credentials of the critical minerals industry also require improvement, with water withdrawals and greenhouse gas emissions on the rise.