Expenses in e-mobility and renewable energies reach record level despite rising raw material prices.
Global investment in the energy transition reached a new record level in 2021. According to BloombergNEF, a total of 755 billion U.S. dollars flowed into measures to reduce climate-damaging emissions, an increase of 27 percent compared with 2021. Renewable energies and electromobility were the main beneficiaries. The zero-emission vehicle market may even attract more investment than the sustainable energy sector this year, according to the market research firm.
The majority of spending on the energy transition was made by China with $266 billion, followed by the USA with $114 billion. The fact that investments have risen despite significantly increasing prices for the necessary raw materials is a clear commitment by investors, governments and companies to the energy transition, comments BloombergNEF Chief Analyst Albert Cheung.
Prices for neodymium and praseodymium, which are equally important for wind energy and e-mobility, had reached new highs last November. The materials needed to manufacture batteries, such as nickel, cobalt and lithium, are also becoming increasingly expensive, as the Reuters news agency recently reported.