Demand for critical energy transition minerals could increase almost fourfold by 2050
As the climate emergency intensifies, demand is surging for minerals that are critical for renewable energy technologies like solar panels, wind turbines and electric vehicles (EVs).
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Even though prices are currently down from where they were in 2022, experts still see the monumental importance of lithium in the years and decades ahead.
UN Trade and Development (UNCTAD) projections based on data from the International Energy Agency indicate that by 2050, for example, lithium demand could rise by over 1,500%, with similar increases for nickel, cobalt and copper.
UCTAD also believes that to achieve the global 2030 net-zero emission targets, the lithium mining industry will need 70 new mines.
Many developing countries have a wealth of these minerals but lack the processing capabilities needed to add value. Commodity dependence affects 66% of small island developing states, 83% of least developed countries and 85% of landlocked developing countries.
Mining sector prepares ahead of 1,500% surge in lithium demand by 2050.
UN Trade and Development has identified 110 new mining projects worldwide, valued at $39 billion, with $22 billion invested in 60 projects in developing countries.
Yet to achieve the 2030 net-zero emission targets, the industry may need around 80 new copper mines, 70 of both lithium and nickel mines, and 30 new cobalt mines.
The investment needed between 2022 and 2030 ranges from $360 billion to $450 billion, potentially leaving a gap of $180 billion to $270 billion. The most significant shortfalls are in copper and nickel, accounting for 36% and 16% of the total gap, respectively.
Source: International Energy Agency
