Demand for Critical Minerals Used in Clean Tech Is in Raise

(MENAFN) The growing global emphasis on eco-friendly energy technologies, driven by the need to combat climate change, is significantly influencing the future energy landscape.

This shift is especially evident in the soaring investment in critical minerals, as highlighted in the International Energy Agency’s Global Critical Minerals Outlook report.

Based on the study, the need for these essential resources is forecasted to triple by the year 2040.

Escalating geopolitical rivalries have elevated the importance of critical minerals beyond just economic value—they are now a strategic concern for nations aiming to strengthen their positions in the green energy arena.

As clean energy becomes a cornerstone of future development, access to and control over these resources is increasingly seen as vital.

Out of approximately 4,000 known minerals worldwide, a select group—including lithium, nickel, cobalt, graphite, copper, and rare earth elements—are indispensable to the clean energy industry.

These substances play central roles in the shift toward sustainable energy and are heavily utilized in electric vehicles, battery systems, renewable power infrastructure, and energy storage solutions.

Ensuring a stable and long-term supply of these vital minerals is crucial for safeguarding the future reliability of global energy systems.

The International Energy Agency emphasized that the demand for such materials, particularly rare earth elements, is projected to reach nearly 35 million tons per year by 2040.

Financial support for the critical minerals sector is expected to grow dramatically—from USD45 billion in 2023 to an impressive USD800 billion by 2040.

Among these, copper stands out as a major focus, projected to attract about USD490 billion in investments.

Nickel follows with an estimated USD160 billion, while lithium is expected to draw in USD80 billion in funding over the same period.

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