Geopolitical Risks Impact Supply of Critical Energy Raw Materials Like Cobalt, Nickel, and Copper
Geopolitical and economic factors are creating supply risks for critical energy raw materials such as cobalt, nickel, and copper, which are essential for batteries and renewable technologies. The Democratic Republic of the Congo, a major cobalt supplier, faces social and environmental challenges, while nickel prices have surged amid concerns over production risks in Indonesia. Demand for copper continues to rise, driven by its importance in electric vehicles and renewable energy systems.
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Critical energy raw materials, essential for industries in many countries, face supply risks due to geopolitical and economic factors. Nations are seeking to reduce dependence on others as the production of batteries, renewable technologies, and electronic components becomes increasingly important.
Cobalt, nickel, and copper are key materials for lithium-ion batteries, wind turbines, solar collectors, and energy storage systems. The Democratic Republic of the Congo is a major supplier of cobalt, but mining conditions are often socially problematic, prompting searches for alternative sources.
The price of nickel surged to nearly $18,000 per ton by the end of 2025, up from about $15,000 a year earlier, despite a generally well-supplied nickel market. However, production risks in Indonesia, a key supplier, raise concerns about human rights and environmental issues. Copper remains critical across various applications, including electric vehicles and renewable energy systems, and its demand is increasing due to the rise of AI technologies.
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