Even though prices have declined from their 2022 peaks, experts continue to emphasise the monumental importance of lithium in the years and decades ahead. Projections from the UN Trade and Development (UNCTAD), based on data from the International Energy Agency, suggest that by 2050, lithium demand could increase by over 1,500%. Similar substantial rises are expected for nickel, cobalt, and copper.
To meet the global 2030 net-zero emission targets, the lithium mining industry will need 70 new mines. Many developing countries possess significant reserves of these critical minerals but often lack the processing capabilities necessary to add value. Commodity dependence remains a significant issue, affecting 66% of small island developing states, 83% of least developed countries, and 85% of landlocked developing countries.
UN Trade and Development has pinpointed 110 new mining projects globally, with a combined value of $39 billion. Of this, $22 billion is being invested in 60 projects within developing nations. However, to reach the 2030 net-zero emission goals, the mining industry will require around 80 new copper mines, 70 new lithium and nickel mines each, and 30 new cobalt mines.
The investment required between 2022 and 2030 is estimated to range from $360 billion to $450 billion, potentially leaving a financial gap of $180 billion to $270 billion. Copper and nickel present the most significant shortfalls, accounting for 36% and 16% of the total gap, respectively.
The need for substantial investment in new mining projects and the development of processing capabilities in resource-rich developing countries is critical. Addressing these gaps will be essential to meet the rising demand for lithium and other key minerals necessary for a sustainable, net-zero future.
Alkemy Capital Investments plc (LON:ALK) is focussed on developing projects in the energy transition metals sector. Tees Valley Lithium is developing a state of the art lithium hydroxide plant at Teesside, UK. Tees Valley Graphite is developing the UK’s first natural graphite active anode material processing facility at the ‘plug-and-play’ Wilton International Chemicals Park.