The coming US election could have far-reaching consequences for Australia’s exporters of minerals critical to the green energy shift, amid predictions of a slowdown in demand for electric cars and renewable power if Donald Trump is returned to the presidency.
“The pace of US adoption of electric vehicles and renewable energy technologies... could change depending on the outcome of the US presidential election in November, with significant implications for the demand for Australian critical minerals in the short term,” it says. However, a victory for Trump in the November election could lead to decarbonisation policies being rolled back and usher in a delayed energy transition, according to global consultancy Wood Mackenzie.
The new risks to the outlook for critical minerals come amid declining revenue from Australia’s biggest commodity exports of iron ore, coal and liquefied natural gas as benchmark prices continue retreating to more normal levels following unprecedented highs reached after Russia’s invasion of Ukraine.