IEA warns of lithium and copper deficits by 2035

Spanish Market: Metals
21/05/25

The Paris-based IEA has warned that global deficits of copper and lithium by 2035 could be exacerbated in some regions owing to concentration of supply and refining, leading to a potential "Opec moment" for critical minerals.

In its new Global Critical Minerals Outlook report, the IEA said lithium could see a 40pc deficit by 2035, even if all current projects proceed, while copper is expected to reach a 30pc deficit by the same year.

"Diversification is the watchword for energy security, but the critical minerals world has moved in the opposite direction in recent years, particularly in refining and processing," the report's executive summary said. "The average market share of the top three refining nations of key energy minerals rose from around 82pc in 2020 to 86pc in 2024 as some 90pc of supply growth came from the top single supplier alone: Indonesia for nickel and China for cobalt, graphite and rare earths."

In the lithium market, demand tripled from 2020 to 2024, and will triple again by 2035. By then, the electric vehicle (EV) sector will make up 90pc of additional demand while 95pc of future demand growth comes from battery applications: EVs, grid-scale energy storage and battery backup systems, reaching 3.7mn t LCE by 2035.

Three countries — Australia, China and Chile — will control up to 69pc of lithium mining by 2030, while China is expected to control 62pc of refining by the same year.

"China extracts only 22pc of lithium — but controls 70pc of global refining and 95pc of hard-rock lithium processing," the report said.

The copper market is also expected to grow rapidly, supporting the energy transition, but underinvestment and dwindling resource quality will limit supply.

Copper demand rises by 30pc by 2040 under the IEA's base-case (STEPS) scenario, up from 27mn t in 2024 to 34mn t by 2040. The IEA predicts a sharp deficit in supply by 2035, up to a 30pc deficit in primary supply. China is expected to dominate refining of copper, responsible for 47pc in 2030. The report said investment of up to $150bn-180bn is needed to keep pace with the global energy transition.

"Despite strong copper demand from electrification, the current mine project pipeline points to a potential 30pc supply shortfall by 2035 due to declining ore grades, rising capital costs, limited resource discoveries and long lead times," the report said.

By Thomas Kavanagh

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

12/06/25

UK ETS emissions fell by 11pc on the year in 2024

Seville, 12 June (Argus) — Emissions in sectors covered by the UK emissions trading scheme (ETS) declined by 11.5pc year on year in 2024, data published by the UK ETS authority show, slowing their decline slightly from the previous year. Stationary installations covered by the UK ETS emitted 76.7mn t of CO2 equivalent (CO2e), down by 12.9pc from 2023, the data show. But this was offset somewhat by a 2pc increase in aviation emissions to 8.99mn t CO2e. Overall UK ETS emissions now have declined for two consecutive years, having fallen by 12.5pc in 2023. Emissions under the scheme rose by 2.5pc in 2022, as a strong rebound in aviation activity following earlier Covid-19 restrictions outweighed declining stationary emissions. Stationary emissions have decreased in every year since the scheme launched in 2021. The majority of the decline in stationary emissions under the UK ETS last year took place in the power sector, where emissions dropped by 18.2pc to 30.6mn t CO2e. The country's last coal-fired plant, Ratcliffe-on-Soar, closed in September last year. And the share of gas-fired output in the generation mix dipped as wind, solar and biomass production and electricity imports edged higher. Industrial emissions also declined, by 8.9pc to 46.1mn t CO2e. The iron and steel sector posted the largest relative drop of 30pc to 6.54mn t CO2e. Emissions from crude extraction fell by 6.4pc to 6.0mn t CO2e, while emissions from gas extraction, manufacture and distribution activities decreased by 8.9pc to 5.3mn t CO2e. The chemicals sector emitted 2.28mn t CO2e, down by 5.2pc on the year. A total of 43 installations were marked as having surrendered fewer carbon allowances than their cumulative emissions since the launch of the UK ETS, as of 1 May. A further two installations failed to report their emissions by the deadline. "Appropriate enforcement action" will be taken against operators that fail to surrender the required allowances, the UK ETS authority said. Overall greenhouse gas emissions across the UK economy dropped by a smaller 4pc last year, data published by the government in March show. This decline also was driven principally by lower gas and coal use in the power and industry sectors, with smaller declines in transport and agriculture, not covered by the UK ETS, and an increase in buildings emissions, also out of the scheme's scope. Emissions under the EU ETS in 2024 dipped by a projected 4.5pc from a year earlier, based on preliminary data published by the European Commission in April. The UK and EU last month announced that they will "work towards" linking the two systems together. By Victoria Hatherick UK ETS emissions mn t CO2e Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Philippines axes planned ban on nickel ore exports

12/06/25

Philippines axes planned ban on nickel ore exports

Beijing, 12 June (Argus) — The Philippines has removed a provision in its mineral bill that had banned the export of unprocessed nickel ore. The country's Senate on 3 February had passed a bill to ban unprocessed nickel ore exports by 2030 to promote domestic processing -- mirroring a similar policy in Indonesia. But this was not welcomed by the local industry. The decision to remove the ban was supported by the Philippine Nickel Industry Association (PNIA). "This is a prudent and forward-looking step that protects jobs, upholds investor confidence, and reflects a more realistic understanding of the challenges surrounding domestic mineral processing," PNIA said in a statement. The Philippines exported 44.97mn wet metric tonnes of nickel ore in 2024, up by 10.1pc year on year. Of this, 35.12mn wmt was exported to China, down by 12pc on the year. Indonesia received 9.55mn wmt, up from 215,000wmt it received in 2023. Rising demand and a lower approved mining quota, or RKAB, in Indonesia boosted the country's ore imports from the Philippines. While in China, weak demand resulted in the decline of imports. The Philippines' nickel intermediates output fell by 7.8pc on the year to 414,000t of nickel metal equivalent in 2024. Most of this production came from the Coral Bay and Taganito high-pressure acid leach plants owned by Nickel Asia, according to data from the International Nickel Study Group. Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US copper group seeks tariffs, export ban

11/06/25

US copper group seeks tariffs, export ban

Houston, 11 June (Argus) — A US copper trade group is asking the government to impose tariffs on certain imported products while sparing some feedstocks as part of an ongoing trade investigation. In a 6 June filing to US trade regulator the US Bureau of Industry and Security, the Copper Development Association recommended that the US impose tariffs on all semi-fabricated copper and copper alloy products, such as plates, sheets, strip, and wire, and requested a tariff exemption for raw material feedstocks, including copper cathodes and scrap copper. The group seeks the exemptions because it believes tariffs on refined copper cathodes would hurt the domestic semi-fabrication industry and potentially worsen national security risks. The group also called for a ban on all US copper scrap exports to reduce access to US supplies by China and other countries. The US imported 1.7mn metric tonnes (t) of copper and its derivatives in 2024 and exported 956,700t of copper scrap, according to customs data. Copper cathode made up the majority of copper imports last year at 903,100t, which predominantly came from the US' free trade partners Chile, Canada, Peru and Mexico. Copper is currently not considered a critical mineral according to the US Geological Survey (USGS), but in the filing, the association requested copper be added to the newest version of the USGS critical minerals list, which is expected to be published later this year. Critical minerals are defined as those used to manufacture products considered essential to American economic and national security. By Angelina Contreras Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US inflation up to 2.4pc in May, energy down

11/06/25

US inflation up to 2.4pc in May, energy down

Houston, 11 June (Argus) — US inflation ticked up to an annualized 2.4pc in May as core inflation remained unchanged, a sign US president Donald Trump's shifting tariff policies have yet to meaningfully impact prices. The consumer price index rose from an annual 2.3pc in April, the Bureau of Labor Statistics reported Wednesday. Analysts surveyed by Trading Economics had forecast a gain of 2.5pc. Core inflation, which strips out volatile food and energy prices, rose by 2.8pc over the 12-month period, unchanged from the prior month. The energy index contracted by 3.5pc for the 12 months compared with a 3.7pc contraction through April. The CME's FedWatch tool shows 99.9pc probability the Federal Reserve will hold its target rate unchanged at 4.25-4.5pc at its meeting next week, compared with 97.3pc Tuesday, and as much as a 67pc chance of a likely cut in September. The Fed has said it will monitor the evolving impacts of Trump's tariff, fiscal and other policies on prices and the broader economy before resuming its course of rate cuts, on pause since December. The food index rose by 2.9pc over the past year, quickening from 2.8pc in the 12 months through April. Services less energy services, viewed as a core services measure, rose by 3.6pc in the 12 months through May, unchanged from April. Gasoline fell by 12pc over the 12-month period through May while piped gas services rose by 15.3pc. Shelter rose by an annual 3.9pc. New vehicles rose by an annual 0.4pc. On a monthly basis, CPI rose by 0.1pc in May following a 0.2pc gain in April and a 0.1pc contraction in March. Shelter rose by 0.3pc for the month, leading the overall monthly gain. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

N EU HRC market anticipates price rise/import surge

11/06/25

N EU HRC market anticipates price rise/import surge

London, 11 June (Argus) — North European hot-rolled coil (HRC) prices are expected to increase later this year, as buyers move early to avoid anticipated supply-side constraints. Europe's carbon border adjustment mechanism (CBAM) will increase the cost of imports from January 2026. There are unconfirmed reports that the commission will set the CBAM benchmark for blast furnace-based imports at 1.4t. If true, this would add nearly €53/t to the cost of importing HRC with a carbon intensity of 2.1t, assuming a carbon cost of €72.07/t. The commission will also provide more clarity around its proposed melt-and-pour clause in the third quarter. Should this be imposed in the first half of 2026, it will increase the cost of importing cold-rolled coil (CRC) and hot-dip galvanised. Legal sources suggest that the commission could mandate payment of anti-dumping duties for those that continue to use Chinese substrate. For example, if a re-roller buys Chinese HRC, processes it into CRC and sells it in the EU, it may be liable for the dumping duties currently in place on Chinese HRC, the lowest of which is around 18.1pc. This would not necessarily reduce EU imports of downstream products, and is hard to enforce, but could raise the floor price as re-rollers source more domestically. There will also be changes made to the current steel safeguard, which lapses in June 2026. European steel association Eurofer wants the safeguard to be replaced as early as January 2026 to reduce import penetration, and given the risk of supposed trade diversion from the US where tariffs have now been increased to 50pc for most exporters. Eurofer has been outspoken in its demand for a 50pc cut in imports, to realign market share with historical norms. It is not clear if the commission will acquiesce to this request, but officials have already stated that the new measure will be stricter than the current mechanism. However, some suggest a pre-emptive import surge — as traders race to clear customs before costs rise — could increase supply rapidly in a subdued demand environment. A number of traders have openly admitted to trying to import substantial quantities for fourth-quarter clearance to beat the CBAM and any other potential tariffs. Whatever regulatory obstacles may appear, demand is still the major issue for the steel supply chain. There is potential demand upside from German stimulus efforts, and should wider geopolitical uncertainty ease this year. EU industrial production has started to grow of late, after years of decline, and German manufacturing inventories and new orders are trending the right way too — stocks are falling from high levels, and new orders are contracting less than before. But slower economic growth and rising trade uncertainty also pose downside demand risks — for example, automotive companies and their supply chains are currently grappling with production issues because of reduced Chinese rare earth exports . Should trade tension increase, there is a risk of further supply-side constraints impacting steel-using sectors. By Colin Richardson Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more