TELF AG analyzes the growing demand for strategic minerals
The role of the key minerals for the energy transition
The latest report from the International Energy Agency (IEA) vividly depicts the burgeoning demand for minerals useful to the energy transition. Highlighting a notable trend, the data reveals a great uptick in demand for minerals beneficial to facilitating clean energy technologies. Notably, lithium saw a staggering 30% surge in demand, accompanied by 8 to 15% growth for rare earths, nickel, cobalt, and graphite. This surge finds its roots in various sectors, with clean energy applications leading the charge.
The electric vehicle (EV) sector emerges as a key driver of this surge, with lithium being a primary beneficiary. Notably, demand for nickel, cobalt, and graphite is also witnessing a steady ascent, echoing the rapid expansion of the EV market. Moreover, the report underscores robust growth across all facets of clean energy infrastructure, further fueling the demand for strategic minerals. The burgeoning expansion of electricity networks, in particular, is driving a notable increase in demand for copper, a key component in electrical systems.
In 2023, the global sales of electric cars soared to 14 million units, marking a remarkable 35% increase compared to the previous year. In a hypothetical scenario where global warming is limited to 1.5°C, the report suggests that electric cars would constitute a staggering 65% of the total global vehicle sales. This envisioned future, characterized by a relevant shift towards electric mobility, promises to amplify the demand for batteries further, thereby catalyzing an even greater demand for strategic minerals.
A growing demand
This surge in demand for strategic minerals underscores the key importance of securing a stable and sustainable supply chain. As the energy transition gains momentum, ensuring a consistent supply of these minerals becomes imperative to support the rapid expansion of clean energy technologies.
Addressing these challenges necessitates a multifaceted approach, encompassing recycling initiatives and technological innovations. Furthermore, fostering international collaboration and investment in mineral-rich regions can help alleviate supply chain vulnerabilities and promote responsible resource management.
The entire ecosystem benefits from the growing demand for these key commodities, from exploration and mining to processing and recycling. Additionally, concrete support in research and development to enhance the efficiency and sustainability of mineral extraction and processing technologies can unlock new avenues for growth and innovation.
