Signal Lithium supply set to meet only half of 2035 pledge requirements

Summary

Drawing on IEA projections, the report estimates that lithium supply will cover only half of what is needed to meet the 2035 goals of the Announced Pledges Scenario. The report uses this as an example of how growing demand for critical minerals could slow the clean energy transition. When rising demand meets supply chain disruption and higher mineral prices, clean energy technologies become costlier and are deployed more slowly. Industries that depend heavily on critical minerals, such as next generation telecoms, could suffer in a shortage, dragging on growth and possibly costing jobs. Net zero businesses may also find it hard to develop and scale up clean energy technologies amid disrupted supply and price shocks. Over the longer term, the report expects such shortfalls could delay net zero and raise geopolitical tensions.