Issue Mineral shortages stalling net zero and escalating tensions

Summary

The report identifies mineral shortages caused by supply chain disruption as a long-term uncertainty. If supply chains falter, the minerals the net zero transition depends on could run short and geopolitical tensions could rise. According to the International Energy Agency, demand for the minerals used in clean energy technologies quadruples by 2040 in the net zero scenario. Lithium supply, by contrast, is estimated to meet only half of what the 2035 Announced Pledges goals require. The report holds that growing demand and rising prices could make clean energy technologies dearer and slow their uptake. Net zero businesses could find it harder to develop and scale their technologies because of disruption and price shocks.