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Navigating the forces reshaping mining and manufacturing

The battery metals race heats up as six forces reshape the landscape, presenting opportunities and challenges on the path to net zero.

The global race to net zero is fueling unprecedented demand for battery metals and minerals, presenting immense opportunities and complex challenges across mining and manufacturing value chains. To successfully navigate this landscape, miners, contractors, and original equipment manufacturers (OEMs) must understand the powerful forces reshaping the industry.

As demand for critical minerals ramps up, opportunities to participate in the energy transition are complicated by social, political, and economic factors that are turning the energy transition into a race for resources. To mitigate risk, organizations must contend with six forces of change impacting mining and manufacturing: 

1

The U.S. Inflation Reduction Act's (IRA) demand distortion. The IRA's stimulus for clean energy technologies has created a gravitational pull on heavy industry, as U.S. demand for critical minerals layers new complexity into forecast demand.

2

Geopolitical disruption to the flow of business. The strategic importance of critical minerals is resulting in governments increasingly setting policy based on national interest rather than economic efficiency.

3

A talent drought. While demand for battery minerals and metals escalates, the shortage in skilled labor needed to implement the latest technologies continues. 

4

Irrational capital markets. Trends and developments including environmental, social, and governance (ESG) mandates, geopolitical uncertainty, and concerns around energy security are complicating incentive structures and changing the way capital markets reward value.

5

Government trade-offs between reducing debt and reaching net zero. Widespread national debt and high interest rates create a challenging environment to fund COP28 commitments.

6

Escalating capital and operational costs. A significant global project pipeline is fueling price inflation, while coordinated global policies, emissions pledges, and goals are escalating project costs.

Download our report to learn more about how your organization can prepare for the impact of global forces in battery metals mining and manufacturing.

Dive into our thinking:

The supercharged race for battery metals

Geopolitical disruptions, talent shortages, and escalating costs are among the key factors influencing the battery metals landscape as organizations navigate the complexities of the energy transition in pursuit of a net-zero future.

Get the whitepaper

Meet our team

Image of Richard Metzner
Richard Metzner
Advisory Managing Director, Strategy, KPMG US
Image of Brad Stansberry
Brad Stansberry
Partner, Energy and Chemicals Advisory Leader, KPMG US

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