East-West battleground will shift to metals

QPM Energy

23/12/2022 15:04

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are her own.)
    By Lisa Jucca
       MILAN, Dec 23 (Reuters Breakingviews) - After clashing
with gas producer Russia, Europe has scrambled to diversify
energy supplies to prop up its industries. Western companies
will soon feel uneasy relying on China for lithium and nickel,
key to a $5.3 trln green push. Expect a pile-up of mining and
recycling deals.        
    Full view will be published shortly.
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(This is a Breakingviews prediction for 2023. To see more of our
predictions, click here.)
    CONTEXT NEWS
    Europe would need to invest $5.3 trillion in new power
generation projects, particularly wind and solar, as well as
green hydrogen developments to free itself from fossil fuels by
2050, according to BloombergNEF estimates.   
    Total demand for metals and minerals critical to shifting
away from fossil fuels would need to grow by six times by 2040
to help the world reach global climate goals, according to
estimates from the International Energy Agency.    
    In 2019, China accounted for 64% of the global production of
graphite, 60% of rare earth elements, 13% of lithium and 8% of
copper, IEA data shows.   
    The People’s Republic also accounts for 87% of the global
refining and processing of rare earth elements, 65% of cobalt,
58% of lithium and 40% of copper.    
 (Editing by George Hay, Oliver Taslic and Sharon Lam)
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