Energy Transition Causes Raw Material Demand to Skyrocket
Low-carbon energy technologies are the main driver of future metal demand. This is because wind turbines, solar panels, and electric vehicle batteries require vast quantities of rare earths and technology metals.
A study by Eurométaux illustrates how drastically the gap between supply and demand for these energy metals will widen by 2050. The study, commissioned by the University of Leuven, concludes that there will be an annual demand of 75 million tons for the 22 metals examined. According to certain interpretations of the study, this means up to a 26-fold increase in demand for rare earths compared to 2020. More conservative interpretations still project an overall 67% increase in demand for the examined metals. Regardless of the calculation, industry must anticipate supply bottlenecks.
The table below shows which production-critical elements and metals are needed the most. The values refer to the International Energy Agency’s “Well below 2°C” scenario. The more ambitious target of limiting global warming to no more than a further 1.5°C by 2050 would place an even greater burden on the metal markets. The demand figures for production-critical commodities would therefore be much higher.
These Production-Critical Elements and Metals Are Most Needed
Technology Metals and Rare Earths (Percentage of raw materials needed for clean technology in 2050 compared to 2020):
- Dysprosium Oxide (+ 433%)
- Tellurium (+ 277%)
- Scandium (+ 204%)
- Gallium (+ 77%)
- Neodymium Oxide (+ 66%)
- Platinum (+ 64%)
- Terbium Oxide (+ 62%)
- Germanium (+ 24%)
- Indium (+ 17%)
- Silver (+ 10%)
Based on their survey, the initiators of the study propose several important solutions: focusing on sustainable imports, expanding domestic mining and local refineries, and increasing recycling.
At Noble BC, we know another way: investing promptly in the commodities needed by industry. In this way, investors can help to bring these important commodities into the country and ensure the security of supply for European industry. Finomet ‘s blockchain solution offers investors additional security.