Where's the Beef?

Spring is here and barbeque season is approaching! This long weekend, I’ve been reflecting on the events that Cobalt Institute?has attended so far in 2024: the Future Minerals Forum, Mining Indaba, PDAC, and most recently, Giga Europe. At all of them, we heard a similar theme: the race to deliver critical minerals is heating up, but big financing gaps remain.?

True, the level of ambition is exciting and it’s gratifying to see mining and critical minerals at the centre of the sustainability debate. But as the 1980s?American burger advert put it: Where’s the beef? Many are beefing that funding – whether public or private – is not keeping up with the investment that is needed.

The mood music is good. Governments around the world are renewing their commitment to mining as a way of building resilience and prosperity as well as achieving the goal of net zero. One PDAC commentator?noted?that “The most consistent theme at PDAC was the growth in the critical minerals sector and optimism for the future.” But for net zero ambitions to succeed and if governments are to beef up self-sufficiency? It all needs more financing.

Funding deficiencies in the critical minerals sector mirror broader challenges in clean energy financing. Yes, it’s heartening to have seen a doubling of clean energy investment since the turn of the century. But, as our knowledge partners Bloomberg New Energy Finance?have?said, to reach net zero targets, global investment in low-carbon energy must quadruple in comparison to fossil fuels. Currently, this ratio stands at around 1:1.

This shortfall has big implications for the mining industry. Crucial components of the clean energy ecosystem – from electricity grids to electric vehicles – depend on critical minerals. And less direct effects of insufficient investment can affect mining, too: lack of?public charging points, for example, could potentially stall the global adoption of EVs. ?

The beef about financing is real. It's time to light the flames and catalyze action. Let's get cooking!?