Veille 2.1

An investigation by conservationists has found evidence that deep-seabed mining of rare minerals could cause “extensive and irreversible” damage to the planet.The report, to be published on Monday by the international wildlife charity Fauna & Flora, adds to the growing controversy that surrounds proposals to sweep the ocean floor of rare minerals that include cobalt, manganese and nickel. Mining companies want to exploit these deposits – which are crucial to the alternative energy sector – because land supplies are running low, they say.

This study evaluates how Europe can fulfil its goal of “achieving resource security” and “reducing strategic dependencies” for its energy transition metals, through a demand, supply, and sustainability assessment of the Green Deal and its resource needs.

Metals will play a central role in successfully building Europe’s clean technology value chains and meeting the EU’s 2050 climate-neutrality goal. In the wake of supply disruptions from the COVID-19 pandemic and Russia's invasion of Ukraine, Europe’s lack of resilience for its growing metals needs has become a strategic concern. This study evaluates how Europe can fulfil its goal of “achieving resource security” and “reducing strategic dependencies” for its energy transition metals, through a demand, supply, and sustainability assessment of the EU Green Deal and its resource needs . It concludes that Europe has a window of opportunity to lay the foundation for a higher level of strate- gic autonomy and sustainability for its strategic metals through optimised recycling, domestic value chain investment, and more active global sourcing. But firm action is needed soon to avoid bottlenecks for several materials that risk being in global short supply at the end of this decade.

Reaching climate neutrality by 2050 will require 35 more times lithium and up to 26 more times the amount of rare metals compared to today’s limited use, according to a study by a team of researchers from the Belgian university KU Leuven. The study “Metals for Clean Energy” was commissioned by Eurometaux, Europe’s association of metal producers.

To this day, the demand for metals has kept increasing. The energy transition necessary to meet climate objectives will add to that demand during the upcoming decades, for low-carbon energy technologies require larger metal quantities than their fossil-fuel based counterparts. This frequently raises concerns over the actual capacity of geological stocks to meet demand at scale, which we investigate in the present analysis.

Low greenhouse gas technologies require more metals than their fossil fuel-based counterparts. This column estimates supply elasticities and pins down the price impact of the energy transition on the metals markets. The results show that prices for copper, nickel, cobalt, and lithium could reach historical peaks for an unprecedented, sustained period in a net zero emissions scenario. The total value of production could rise more than four-fold for the period 2021-2040, rivaling the total value of crude oil production.