Trend Tellurium and rare earths harder to source, worsening price volatility

Summary

Among its short-term trajectories, the report expects high-risk minerals such as rare earth elements and tellurium, which solar power and offshore wind turbines require, could become more difficult to obtain. Prices for these minerals are already highly volatile, and supply difficulties could make swings larger still. Such volatility has knock-on effects for investors and consumers alike. The report explains that many critical minerals are produced in small quantities or as by-products, are hard to substitute and have low recycling rates. Rising demand combined with higher prices could make clean energy technologies more costly and slow their deployment. Net zero businesses may struggle to scale up clean technologies because of disrupted supply and price shocks.