PARIS – The sharp drop in prices for minerals critical to the green energy transition is masking a looming shortage due to inadequate investment, the International Energy Agency said on Friday.In its inaugural review of the market for such critical materials, the IEA noted prices for minerals key for electric vehicles, wind turbines and solar panels fell back to pre-pandemic levels as supplies caught up with and surpassed demand.
It found only limited progress has been made in diversifying supplies, a key issue given the recent experience with the pandemic snarling supply chains and geopolitical tensions creating risks to access.The report analyzed supply and geopolitical risks, as well as barriers to responding to supply disruptions, and exposure to environmental, social and governance risks.The IEA said it found a 'mixed picture' regarding ESG risks.