Inspenet, July 11, 2023.
According to a McKinsey report, there is a possibility that the minerals and metals needed to meet current decarbonization targets will not be enough to meet demand, which would require an investment of $4 trillion by 2030.
A recent analysis by McKinsey in its report ” The net-zero materials transition: Implications for global supply chains ” reveals that supply shortages of various minerals and metals used in key low-carbon technologies are expected by 2030.
According to McKinsey, the supply of many minerals and metals used in key technologies for reducing carbon emissions will be compromised in the coming years. This situation raises the need for an investment of 4 trillion dollars by the year 2030 in order to address this shortage and satisfy the growing demand.
Likewise, the report highlights that there will be a moderate shortage of materials such as nickel, with an estimated decrease of between 10% and 20%. On the other hand, dysprosium, a highly magnetic material widely used in electric motors, could face a much steeper shortage, reaching as much as 70%.
The cost of decarbonization
According to the study carried out by McKinsey, if mitigation measures are not implemented, the scarcity of minerals and metals could hinder the objective. This situation could lead to price increases and volatility throughout the materials supply chain, which in turn would slow the adoption of low-carbon technologies because customers would not have alternatives available.
Michel Van Hoey, Senior Partner at McKinsey, stressed the importance of expanding and protecting projects already announced to date, while securing future demand. Achieving this will require material extraction to exceed historical growth rates and exploration to double, thus ensuring a further increase in supply after 2030.
Consequently, it is estimated that it will be necessary to increase the annual investment between 300,000 and 400,000 million dollars to satisfy the demand for minerals and metals.
Source: https://elperiodicodelaenergia.com/la-descarbonizacion-puede-provocar-escasez-de-minerales-en-2030/
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