Energy
Visualized: Global Clean Energy Spending Forecasts (2022-2030)
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Global Clean Energy Spending Forecasts (2022-2030)
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Global clean energy funding is projected to total $5.6 trillion between 2022 and 20230, driven by the need for alternative sources to coal, oil, and other carbon-intensive energy sources.
While this investment is essential for mitigating climate change, according to S&P Global, climate funding will still fall short of reaching the goals laid out in the Paris Agreement.
This graphic shows where this investment is projected to be allocated to over the next decade, based on forecasts from S&P Global.
Global Clean Energy Investment, by Type
By 2030, solar energy is forecast to see $2.8 trillion in global clean energy investment, the most across renewable energy sources.
Type | Global Investment (2022-2030P) | Share of Investment |
---|---|---|
☀️ Distributed Solar | $1.5T | 26% |
🏢 Utility Scale Solar | $1.3T | 23% |
🌬️ Onshore Wind | $1.1T | 20% |
🌊 Offshore Wind | $774.2B | 14% |
🔋 Energy Storage | $373.6B | 7% |
♻️ Other Renewables | $557.1B | 10% |
This investment in solar accounts for nearly half of the global total, with 26% going to smaller-scale “distributed” solar systems, such as rooftop solar panels across households, businesses, and other public institutions. Comparatively, utility-scale solar is estimated to see 23% of incoming funding by 2030.
Wind power, falling next in line, is projected to attract the next largest slices of investment, totaling $1.9 trillion. More of the investment is slated to go onshore wind projects (20%), while offshore wind—which generates power on wind farms built across bodies of water—is set to receive $774.2 billion or 14% of estimated funds.
Both the U.S. and the European Union have created incentives for offshore-wind companies, including new tax credits from the Treasury Department.
Overall, current S&P Global forecasts expect $700 billion per year of renewable energy investment through 2050. However, under a net-zero model, an annual figure of $1.4 trillion would be needed to reach zero emissions by 2050.
Energy
Charted: 4 Reasons Why Lithium Could Be the Next Gold Rush
Visual Capitalist has partnered with EnergyX to show why drops in prices and growing demand may make now the right time to invest in lithium.
4 Reasons Why You Should Invest in Lithium
Lithium’s importance in powering EVs makes it a linchpin of the clean energy transition and one of the world’s most precious minerals.
In this graphic, Visual Capitalist partnered with EnergyX to explore why now may be the time to invest in lithium.
1. Lithium Prices Have Dropped
One of the most critical aspects of evaluating an investment is ensuring that the asset’s value is higher than its price would indicate. Lithium is integral to powering EVs, and, prices have fallen fast over the last year:
Date | LiOH·H₂O* | Li₂CO₃** |
---|---|---|
Feb 2023 | $76 | $71 |
March 2023 | $71 | $61 |
Apr 2023 | $43 | $33 |
May 2023 | $43 | $33 |
June 2023 | $47 | $45 |
July 2023 | $44 | $40 |
Aug 2023 | $35 | $35 |
Sept 2023 | $28 | $27 |
Oct 2023 | $24 | $23 |
Nov 2023 | $21 | $21 |
Dec 2023 | $17 | $16 |
Jan 2024 | $14 | $15 |
Feb 2024 | $13 | $14 |
Note: Monthly spot prices were taken as close to the 14th of each month as possible.
*Lithium hydroxide monohydrate MB-LI-0033
**Lithium carbonate MB-LI-0029
2. Lithium-Ion Battery Prices Are Also Falling
The drop in lithium prices is just one reason to invest in the metal. Increasing economies of scale, coupled with low commodity prices, have caused the cost of lithium-ion batteries to drop significantly as well.
In fact, BNEF reports that between 2013 and 2023, the price of a Li-ion battery dropped by 82%.
Year | Price per KWh |
---|---|
2023 | $139 |
2022 | $161 |
2021 | $150 |
2020 | $160 |
2019 | $183 |
2018 | $211 |
2017 | $258 |
2016 | $345 |
2015 | $448 |
2014 | $692 |
2013 | $780 |
3. EV Adoption is Sustainable
One of the best reasons to invest in lithium is that EVs, one of the main drivers behind the demand for lithium, have reached a price point similar to that of traditional vehicle.
According to the Kelly Blue Book, Tesla’s average transaction price dropped by 25% between 2022 and 2023, bringing it in line with many other major manufacturers and showing that EVs are a realistic transport option from a consumer price perspective.
Manufacturer | September 2022 | September 2023 |
---|---|---|
BMW | $69,000 | $72,000 |
Ford | $54,000 | $56,000 |
Volkswagon | $54,000 | $56,000 |
General Motors | $52,000 | $53,000 |
Tesla | $68,000 | $51,000 |
4. Electricity Demand in Transport is Growing
As EVs become an accessible transport option, there’s an investment opportunity in lithium. But possibly the best reason to invest in lithium is that the IEA reports global demand for the electricity in transport could grow dramatically by 2030:
Transport Type | 2022 | 2025 | 2030 |
---|---|---|---|
Buses 🚌 | 23,000 GWh | 50,000 GWh | 130,000 GWh |
Cars 🚙 | 65,000 GWh | 200,000 GWh | 570,000 GWh |
Trucks 🛻 | 4,000 GWh | 15,000 GWh | 94,000 GWh |
Vans 🚐 | 6,000 GWh | 16,000 GWh | 72,000 GWh |
The Lithium Investment Opportunity
Lithium presents a potentially classic investment opportunity. Lithium and battery prices have dropped significantly, and recently, EVs have reached a price point similar to other vehicles. By 2030, the demand for clean energy, especially in transport, will grow dramatically.
With prices dropping and demand skyrocketing, now is the time to invest in lithium.
EnergyX is poised to exploit lithium demand with cutting-edge lithium extraction technology capable of extracting 300% more lithium than current processes.
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