Prices for key materials used in battery manufacturing, such as lithium, cobalt, nickel and graphite, have experienced significant drops, contributing to a notable decrease in battery costs.
According to a report by the International Energy Agency, the price of lithium has plummeted by 75%, while cobalt, nickel and graphite prices have fallen by 30% to 45%.
This decline in raw material costs has played a significant role in driving down battery prices by 14%, making electric vehicles and renewable energy storage more affordable for consumers.
While the lower prices in 2023 may have been beneficial for consumers, they also created challenges for new investments in critical minerals mining and exploration.
Although there was growth in investment during this period, it was at a slower pace compared to the previous year.
Looking ahead, the IEA projects continued strong demand for critical minerals as countries accelerate their transition to clean energy technologies.
IEA Executive Director Fatih Birol said: “The recent critical mineral investment boom has been encouraging, and the world is in a better position now than it was a few years ago, when we first flagged this issue in our landmark 2021 report on the subject.
“But this new IEA analysis highlights that there is still much to do to ensure resilient and diversified supply.”
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