Energy transition may trigger a minerals version of OPEC
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Geopolitical power could shift from oil-dominated countries to those that produce the critical minerals that will underpin the switch to clean energy, according to KPMG, which urges advocates of the energy transition to co-operate with the mining industry.
Just as the Organisation of Petroleum Exporting Countries collaborated on oil supply to force up prices and punish diplomatic opponents in the 1970s, KPMG’s global head of mining Trevor Hart said the world could see a critical minerals equivalent he dubbed OMEC.
Minerals such as lithium, graphite, vanadium, cobalt and indium were cited by KPMG as being critical to the energy transition. Copper, nickel and rare earths are also viewed by most pundits as being needed for renewable energy infrastructure and batteries.
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