The Net-Zero Materials Transition Implications For Global Supply Chains

net-zero emissions economy has sparked a “materials transition.” This report aims to provide an integrated perspective on these supply-chain changes, including materials demand, shortages that can be expected, and key actions that will be required to balance the equation and safeguard the speed of the transition.
With these points in mind, our research explores the following key findings: Materials are a critical enabler of the net-zero transition. The world has embarked on an ambitious decarbonization journey toward a net-zero emissions economy, which will require fundamental technology shifts across industries at an unprecedented speed. These technologies often require more physical materials for the same output when compared with their conventional counterparts during the construction phase. For example, battery electric vehicles (BEVs) are typically 15 to 20 percent heavier than comparable internal-combustion engine (ICE) vehicles and will therefore become a key driver for materials demand in the coming decades. Consequently, the extent to which global materials supply chains can keep up with new and accelerating sources of demand will be a critical determinant of global decarbonization rates.