Soaring demand for the raw materials needed for the transition towards renewable energy is creating dilemmas for investors weighing the economic, environmental and human rights risks of such projects…With demand for fossil fuels expected to peak by the end of the decade, the focus is shifting towards lithium, cobalt, copper and other materials that are extracted from the earth through heavy labour and leave scars in the environment…Demand for cobalt will have increased from 171,000 tonnes to 524,700 tonnes by 2050, according to the IEA, with nickel requirements set to soar 120 percent in the same timeframe…The IEA said in a July report that investment in the mining sector is still insufficient to meet demand, and also flagged concerns that a high concentration of new projects were clustered in a small number of countries…"This is a huge issue," said Jason Schenker, president of Prestige Economics. "We have massive shortfalls across commodities."…"The amount of additional mining, refining, smelting, and everything that's going to be needed to get us where we need to be in terms of supply is a number very difficult to come to, because every time you're opening a new mine, it involves a lot of money," he said…Svensson said it needs "15-20 years to start a new mine"…"We want companies that are extracting metals in the best environmental way," he added.

Record growth in clean energy technology, including solar panels and electric vehicles, means it is still possible to limit global warming to 1.5 degrees Celsius (2.7 degrees Fahrenheit), the International Energy Agency (IEA) said on Tuesday…But it also said the world would need need to invest nearly $4.5 trillion per year in the transition to cleaner energy from the start of the next decade, up from spending of $1.8 trillion expected in 2023…In its update to its Net Zero Roadmap, which proposes scenarios to reach net zero emissions by the middle of the century, the IEA said an increase in solar power capacity and in electric vehicle (EV) sales since 2021 were in line with targets, as well as infrastructure plans in both fields…Much more effort, however, is still required as a tripling of global renewable capacity, a doubling of energy efficient infrastructure, an increase in heat pump sales and a further rise in EV use are needed by 2030, the IEA said…"Governments need to separate climate from geopolitics, given the scale of the challenge at hand," IEA Executive Director Fatih Birol said.

Mid-nickel lithium ion battery cells can have a lower carbon footprint than high nickel or lithium iron phosphate (LFP) cells, according to new data from Benchmark’s Battery Emissions Analyser (BEA)…While LFP cells maintain a cost advantage over the majority of nickel-based chemistries, the carbon intensity of these variants can in fact prove more carbon intensive than NCM cells, despite the lack of cobalt and nickel…LFP batteries require more active and inactive materials than NCM batteries on a kWh basis, due to their lower energy density. That means that to get to the same kWh level, the material intensity is higher resulting in higher emissions…The build out of energy storage capacity will be fundamental to the successful transition of energy generation to cleaner sources…However, to date, there has been limited understanding of the impact of this battery production across battery technologies, much less across lithium ion chemistries. due to a lack of understanding of real world material intensities and supply chain process routes…“With regulatory pressure increasing, identifying risk hotspots is imperative to developing effective supply chain strategies for all downstream participants,” Charlotte Selvey-Miller, head of sustainability at Benchmark, said.

Nissan Motor Co said on Monday all its new European models will be fully electric and it plans to sell only electric vehicles (EVs) on the continent by 2030, joining a growing number of carmakers shifting to electric by the end of the decade…Earlier this year, Nissan raised its targets for EV models as it plays catch up in a segment dominated by newcomers like Tesla - saying it would launch 19 new EV models by 2030…Speaking to reporters in London after unveiling a concept EV, CEO Uchida declined to provide a timeline for when the first of those EVs will be launched…Nissan also previously said that by its fiscal year ending March 31, 2027, 98% of its sales in Europe would be electrified - meaning either fully-electric cars or hybrids, which combine a battery and combustion engine…Ford and Stellantis also plan to be fully electric in Europe by 2030. Volvo plans to sell only EVs globally by 2030…"There's a lot of competition happening ... the Chinese (carmakers) are coming massively," Uchida said. "The Chinese have moved much, much faster than we expected."

Ford Motor Co. was blasted by its largest labor union for halting construction on a $3.5 billion battery plant in Michigan amid scrutiny of its ties to a Chinese battery maker by Republican lawmakers…The proposed plant near Marshall, Michigan, is expected to employ 2,500 workers and produce enough batteries to power 400,000 electric vehicles a year. But Ford’s decision earlier Monday puts the facility — and its jobs — in limbo…The plant was to have licensed technology from China’s Contemporary Amperex Technology Co. Ltd., which some lawmakers accused of being affiliated with the Chinese Communist Party…“We’re pausing work and limiting spending on construction on the Marshall project until we’re confident about our ability to competitively operate the plant,” said T.R. Reid, a Ford spokesman…Ford is throttling back on ambitious electric vehicle production plans as sales growth slows due to consumer resistance to the high price of battery-powered models. Chief Executive Officer Jim Farley now says the company is aiming to quadruple sales of gasoline-electric hybrid models over the next five years.

The European Union’s probe into Beijing’s electric-vehicle subsidies is meant to protect its carmakers from a flood of cheap Chinese cars. But if it leads to tit-for-tat tariffs, Mercedes-Benz Group AG and BMW AG’s biggest moneymakers will be most exposed. For Germany’s high-end manufacturers, including Porsche AG, China has proven an insatiable market for their most expensive models, like the S-Class, 7-Series and Cayenne SUV. Those vehicles, however, are mainly imported, putting them in the line of fire if Beijing retaliates against any EU measures…The three German luxury-carmakers are at greatest risk of taking a big hit should the trade dispute escalate, they said…China is the biggest destination for Germany’s most expensive vehicles. Last year, the country accounted for more than a third of global sales of BMW’s 7-series and Mercedes’ S-Class. The 1.47 million yuan ($201,000) Maybach ships more than 1,000 times a month from Chinese showrooms. For Volkswagen subsidiary Audi, China made up more than a third of global sales. Last year, the carmaker exported to China more than 10,000 of its A8 luxury sedans, which are made exclusively in Neckersulm, Germany…Roeska and Lee estimate that Chinese revenue streams represent more than 25% of the German automakers’ underlying net income…The EU’s chief trade negotiator Valdis Dombrovskis reaffirmed the bloc’s “more assertive” stance on trade with China in a speech in Beijing on Monday…If China decides to respond with import tariffs, “Made in Germany” — long considered a badge of sophistication — could prove a drawback.

Democratic Republic of Congo said it’s backing plans for a new domestically owned copper-cobalt plant to help formalize artisanal mining in the country, at a time when minerals crucial to electric vehicles are moving further into the global spotlight…The project, which will be developed by privately held Congolese firm Buenassa Sarl, is expected to cost about $350 million, and Washington-based financial consulting firm Delphos International Ltd. has agreed to help raise financing, representatives from the two companies and the government said in an interview…Congo supplies about 70% of the world’s cobalt and is a top-three copper producer, which means it will play a key role in the world’s green-energy shift…The involvement of Delphos also highlights a growing focus among western governments on ensuring security of supply for strategic minerals such as copper and cobalt while reducing dependency on China. Delphos works closely with the US government, specializing in development and export-credit financing, and the Buenassa project “is very much aligned with the geopolitical goals of the United States,” said Delphos International Chairwoman Roya Rahmani…Buenassa initially planned to produce 30,000 tons of copper cathode and 5,000 tons of cobalt hydroxide, largely sourced from the hundreds of thousands of Congolese who mine the minerals by hand. But Kioni now anticipates the project will expand with Delphos’ and government backing…Buenassa will also process industrial ore to ensure the smelter’s profitability and is in talks with a US-based commodities trader to market the output, Kioni said, declining to say which one…Most of Congo’s minerals currently end up in China for final refining. The two countries have a $6.2 billion minerals-for-infrastructure deal that is under renegotiation to create “a new adventure” between them, President Felix Tshisekedi said last week.