Climate targets threatened by lack of mining investment: McKinsey – by Cecilia Jamasmie ( – September 27, 2023)

Soaring demand for metals and minerals needed to achieve a reduction in global emissions, paired with low commodity prices driving investors and mining firms to cut spending are set to cause major shortages of key elements for the world’s energy transition, a new report shows.

According to consultancy McKinsey & Company, looming supply gaps for rare earths, lithium, nickel, graphite, cobalt, boron and copper could lead to higher prices and market volatility, hindering emissions goals.

To keep global warming to no more than 1.5°C, as planned by the Paris Agreement in 2015, emissions need to be reduced by 45% by 2030 and reach net zero by 2050.

The analysis, published on Wednesday, forecasts shortages of 20% to 50% across some rare-earth metals and minerals essential for renewables, power grids and EV batteries. The message is as clear it is old: the world needs mining.

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