Risk Scores for Critical Minerals
Lithium and graphite show the highest risk scores, though the specific areas of exposure vary by mineral.
Lithium and copper are more exposed to supply and volume risks whereas graphite, cobalt, rare earths and nickel face more substantial geopolitical risks. On the other hand, graphite, rare earth elements and lithium have relatively little ability to respond to potential supply disruptions.
Most minerals are exposed to high environmental risks and have particularly high ratings for environmental performance for the refining segment in large part because today’s refining operations occur in places with higher carbon intensity of the grid, mostly in regions relying on coal-based electricity. Mining assets are also exposed to growing water stress and earthquake risks, with around 10% of global copper production facing supply risks related to droughts.