China Has Broken the ‘Critical Minerals’ Market
A slump in cobalt and lithium prices doesn’t guarantee security of the supply of these elements essential to the energy transition.
China still has a stranglehold over the critical minerals needed to make the batteries that will power the energy transition.
Photographer: Patrick T. Fallon/AFP/Getty Images
Billionaire Elon Musk called them the “new oil,” complaining about their “insane” cost. The White House dangled subsidies to whoever could boost supply. European politicians scrambled for a response, also promising financial support for projects. Only a few months ago, the prospect of shortages of elements including cobalt, lithium and a few other metals stoked apprehension as prices of the elements needed to make the batteries crucial for the energy transition climbed.
Not anymore. China has broken the market for these so-called critical minerals.