Transforming Supply Chain Critical Minerals Overlooks Dramatic American Moves

Highlights

• Global energy storage battery cell shipments reached 334 GWh in 2024, driven by increasing demand for critical metals in new energy technologies.
• Cobalt production is heavily concentrated in the Democratic Republic of Congo (70% of global output), raising ethical sourcing and supply chain stability concerns.
• US policy shifts under President Trump potentially impact global renewable energy transition and demand for critical metals like cobalt, lithium, and nickel.

---

The Shanghai Metals Market (opens in a new tab) (SMM) article emphasizes the surging global demand for cobalt, lithium, and nickel, driven primarily by the expansion of the new energy industry, particularly electric vehicles (EVs) and renewable energy technologies.  It highlights that in 2024, global energy storage system battery cell shipments reached 334 GWh, underscoring the increasing reliance on these metals.

The article also points out the concentration of cobalt production in the Democratic Republic of Congo, which accounts for about 70% of global output. This raises concerns over ethical sourcing and supply chain stability. Similarly, it notes that lithium production is dominated by countries like Australia and China, leading to potential geopolitical risks. Nickel’s growing importance in high-energy-density batteries is also discussed, with Indonesia emerging as a significant supplier.

Missing in Action–USA

However, the article does not address recent policy shifts in the United States that could significantly impact the demand for these metals. In early 2025, President Donald Trump declared a national energy emergency (opens in a new tab), aiming to boost fossil fuel production and roll back various environmental regulations. This policy shift includes withdrawing from the Paris Climate Agreement, lifting bans on offshore drilling, and halting incentives for renewable energy projects. Such moves are expected to reduce the emphasis on renewable energy and electric vehicles in the U.S., potentially decreasing the domestic demand for cobalt, lithium, and nickel. Industry executives have expressed concerns that these actions could lead to higher electricity costs and hinder advancements in clean energy technologies.

The SMM article also does not consider the potential global implications of the U.S. policy reversal. As one of the world’s largest economies, a U.S. shift away from green energy could influence other nations’ energy policies, possibly slowing the global transition to renewable energy sources. This could, in turn, affect the global demand trajectory for these critical metals.

In summary, while the SMM article provides a comprehensive overview of the current demand and supply dynamics for cobalt, lithium, and nickel, it overlooks significant geopolitical developments, particularly in the United States, that could alter future demand patterns for these metals.