Abstract:

The shift to a clean energy system is set to drive a huge increase in the requirements for critical minerals, meaning that the energy sector is emerging as a major force in mineral markets. Until the mid-2010s, the energy sector represented a small part of total demand for most minerals. However, as energy transitions gather pace, clean energy technologies are becoming the fastest-growing segment of demand. In a scenario that meets the Paris Agreement goals, clean energy technologies’ share of total demand rises significantly over the next two decades to over 40% for copper and rare earth elements, 60- 70% for nickel and cobalt, and almost 90% for lithium. EVs and battery storage have already displaced consumer electronics to become the largest consumer of lithium and are set to take over from stainless steel as the largest end user of nickel by 2040. This is why the IEA is paying close attention to the issue of critical minerals and their role in clean energy transitions. This report reflects the IEA’s determination to stay ahead of the curve on all aspects of energy security in a fast-evolving energy world.