Critical minerals market for clean energy technologies doubles in five years

The market for critical minerals used in electric vehicles, solar panels, and wind turbines has doubled in the past five years and, is likely to rise further as clean energy technologies such as solar and batteries expand at historic levels.

The market has responded, with investment in essential mineral development increasing by 30% last year, led by lithium, which saw a 50% increase.

The International Energy Agency’s (IEA) inaugural ‘Critical Minerals Market’ analysis found that the energy sector was the primary driver of a tripling in overall demand for lithium, as well as a 70% increase in cobalt demand and a 40% increase in nickel demand.

According to the IEA, many important material prices have begun to rise.

The IEA, which started assessing the role of essential minerals in the energy transition in 2021, has subsequently received a directive from its members to monitor the developments established on interactive online tools to improve visibility of market dynamics.