Reading the Tea Leaves: Critical Materials

Rapid advancements in technology, electrification, and clean energy adoption have catapulted demand for critical materials like copper, cobalt, lithium, and rare earth elements. Reports from the International Energy Agency (IEA) and other global institutions paint a sobering picture: while these materials are the building blocks of our technology dependence, securing them has become increasingly complex.

Unprecedented Demand for Critical Materials

The IEA’s Global Critical Minerals Outlook 2024 highlights a near-tripling of demand for critical minerals by 2030 under accelerated clean energy scenarios (IEA Report). This surge is driven by:

• Electrification: Copper’s role in power grids, EVs, and renewable energy systems makes it indispensable.

• Energy Storage: Lithium, cobalt, and nickel are critical to the batteries powering electric vehicles and grid-scale storage solutions.

• Technology Expansion: Rare earth elements are essential for semiconductors, magnets in wind turbines, and other advanced technologies.

These trends align with broader data showing record-breaking solar PV installations, a booming EV market, and an AI revolution requiring robust infrastructure—all of which are mineral-intensive (World Economic Forum).

Supply Chain Challenges in Meeting Demand

The soaring demand for critical materials has put immense pressure on supply chains, which are already struggling to keep pace with the needs of electrification and technology industries. The IEA identifies key trends impacting supply availability:

• Explosive Growth in Electrification: By 2030, the electrification of vehicles and renewable energy projects will require a near-doubling of copper production. This creates significant supply-demand mismatches as mining operations ramp up too slowly to meet global needs.

• Battery Metals Under Pressure: Lithium, cobalt, and nickel are experiencing unprecedented demand growth as EV sales skyrocket. The global EV market is projected to reach 14 million units annually, with batteries comprising a significant share of the cost and materials required (IEA Report).

• Technology’s Dependence on Rare Earth Elements: Rare earths, critical for semiconductors and wind turbine magnets, face unique challenges due to limited geographic production and high geopolitical sensitivity.

This growing imbalance between material demand and supply capacity creates ripple effects throughout industries, driving higher costs, longer lead times, and increasing geopolitical tensions. Industries dependent on these materials must act decisively to secure access and ensure continuity (Financial Times).

What This Means for Greenberg Enterprises

These insights highlight not only the urgent need to secure reliable access to critical materials but also an overlooked growth opportunity.

All of this is why we’re excited about our positions with Comstock Inc. ($LODE) and Midnight Sun Mining ($MDNGF). These companies show excellent growth potential, key early catalysts achieved and operate in markets driven by necessity products.

• Comstock Inc. ($LODE): Comstock is revolutionizing resource recovery with advanced recycling technologies that create secondary supplies of high-demand metals like lithium and nickel. Their approach addresses the supply bottlenecks while maintaining cost efficiency.

• Midnight Sun Mining ($MDNGF): Midnight Sun’s operations in the Zambian Copperbelt provide direct access to high-quality copper and cobalt, essential for electrification and battery manufacturing. Their strategic location and commitment to responsible mining make them a key player in addressing critical material shortages.

These investments reflect our confidence in the opportunities presented by the convergence of technology, electrification, and material demand. With strong leadership and innovative approaches, both companies are well-positioned to meet the growing needs of a resource-hungry world.

References

1. IEA, “Global Critical Minerals Outlook” (Link)
2. World Economic Forum, “Global Mineral Demand Outlook” (Link)
3. Financial Times, “Global Critical Mineral Market Review” (Link)
4. Science Direct, “Recycling Strategies in Critical Materials” (Link)
5. Comstock, Inc., “Investor Update” (Link)
6. Midnight Sun Mining, “Investor Presentation” (Link)