According to a new report by the International Energy Agency (IEA), the market for minerals that help power electric vehicles, wind turbines, solar panels and other technologies key to the clean energy transition has doubled in size over the past five years
The Critical Minerals Market Review, shows that record deployment of clean energy technologies is propelling huge demand for minerals such as lithium, cobalt, nickel and copper. From 2017 to 2022, this saw overall demand for lithium tripling, a 70% jump in demand for cobalt, and a 40% rise in demand for nickel. The market for energy transition minerals reached then US$320bn in 2022 and is set for continued rapid growth.
In addition, the report explains how investment in critical mineral development has risen in an attempt to meet demand. Last year, this increased by 30%, flowing a 20% increase in 2021. Among the different minerals, lithium saw the sharpest increase in investment, a jump of 50%, followed by copper and nickel.
IEA executive director, Fatih Birol, remarked, “At a pivotal moment for clean energy transitions worldwide, we are encouraged by the rapid growth in the market for critical minerals, which are crucial for the world to achieve its energy and climate goals. Even so, major challenges remain. Much more needs to be done to ensure supply chains for critical minerals are secure and sustainable. The IEA will continue its early leadership in this space with cutting-edge research and analysis – and by bringing together governments, companies and other stakeholders to drive progress.”
The IEA has indicated that a pressing concern focuses around diversity of supply, with many new project announcements coming from already-dominant countries.
