Aug 15 (Reuters) – The mining industry faces “considerable challenges” meeting larger-than-expected demand for copper, nickel and other electric vehicle metals fueled by a U.S. climate law, S&P Global said in a report on Tuesday, ahead of the legislation’s one-year anniversary.
The landmark U.S. Inflation Reduction Act offers tax breaks for EVs, solar panels and other renewable energy products made from metals extracted in the United States or countries with U.S. free trade deals. Metals from “foreign entities of concern” including China, Russia, North Korea and Iran will be banned in 2025. That has sparked a race among manufacturers to lock down supply.
Demand forecasts for various EV metals have increased 12% to 15% since U.S. President Joe Biden signed the IRA last August, the reportsaid.
“The energy transition is really heating up the pressures on mineral supplies, and the IRA is adding a lot to those challenges,” Dan Yergin, S&P Global’s vice chairman and a co-author of the report, said in an interview.
For the rest of this article: https://www.reuters.com/markets/commodities/miners-face-considerable-challenges-meeting-demand-us-climate-law-study-2023-08-15/