Critical minerals market surges on soaring demand for clean energy: Report
New Delhi: The market for critical minerals, essential for powering clean energy technologies, has experienced a remarkable surge, doubling in size over the past five years, the International Energy Agency (IEA) said in a report on Tuesday. The IEA’s inaugural Critical Minerals Market Review, released today along with a new online data explorer, highlights the soaring demand for minerals like lithium, cobalt, nickel, and copper driven by the increasing deployment of clean energy technologies such as electric vehicles, wind turbines, and solar panels.
The report reveals that the energy sector played a pivotal role in tripling the overall demand for lithium from 2017 to 2022, while cobalt witnessed a 70% jump in demand and nickel saw a 40% rise. Consequently, the market for energy transition minerals reached an impressive $320 billion in 2022 and is projected to witness further rapid growth, making it a focal point for the global mining industry.
Responding to this surge in demand, investment in critical mineral development witnessed a significant rise of 30% last year, following a 20% increase in 2021. Among these minerals, lithium observed the sharpest increase in investment, with a remarkable jump of 50%, followed by copper and nickel.
The substantial growth in corporate spending on mineral supplies reinforces the affordability and pace of clean energy transitions, underscoring the significance of the availability of critical minerals. “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," said IEA Executive Director Fatih Birol.
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