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Higher investment in critical minerals boosts chances of meeting climate targets

Supply of resources could hit demand from clean energy transition but China dominates spending, warns IEA

Investment in critical minerals is catching up with the world’s clean energy ambitions, according to the International Energy Agency, even as it warned that efforts to diversify sources of supply have faltered for metals such as lithium, nickel and cobalt.

The Paris-based organisation said investment in developing critical minerals rose 30 per cent to exceed $40bn last year, building on a 20 per cent increase in 2021. The investment was led by a surge in Chinese spending, raising concerns that Beijing will extend its control of the market for certain products.

If all announced projects to develop critical-mineral resources, that help power electric cars, wind turbines and solar panels, are delivered on time, then supply should be sufficient to keep national climate pledges on track by 2030, the IEA’s report added.

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