Will there be enough minerals to support the energy transition?
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The shift to a clean energy system makes high demands on minerals like lithium and rare earth elements. According to a report published in May 2021 by the International Energy Agency (IEA), compliance with Paris Agreement goals alone would mean a quadrupling of critical mineral demand for use in batteries, electric vehicles and renewable energy generation! Does this increase in demand signal an impending shortage? It’s a question that has yet to be resolved. Current knowledge is not extensive enough to assess the quantity of mineral deposits. However, there is no doubt that demand will have an impact on the financial markets and on geopolitical balances.