The critical minerals market sees exceptional growth as clean energy demand increase

The International Energy Agency has found 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 first annual IEA Critical Minerals Market Review, along with a new online data explorer, 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, the energy sector was the main factor behind a tripling in overall demand for lithium, with a 70% increase in demand for cobalt, and a 40% increase in demand for nickel. The market for energy transition minerals reached USD 320 billion in 2022 and is set for continued rapid growth, moving it increasingly to centre stage for the global mining industry. 

Findings show there has been a strong growth in spending by companies on developing mineral supplies supporting the affordability and speed of clean energy transitions, which will be heavily influenced by 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.  

According to the IEA's analysis, if all planned critical mineral projects worldwide are realised, supply could be sufficient to support the national climate pledges announced by governments.

However, the risk of project delays and technology-specific shortfalls leaves little room for complacency about the adequacy of supply. And more projects would in any case be needed by 2030 in a scenario that limits global warming to 1.5 °C. 

Diversity of supply also remains a concern, with many new project announcements coming from already dominant countries. Compared with three years ago, the share of the top three critical mineral producers in 2022 either remained unchanged or increased further, especially for nickel and cobalt. 

Find out more here.