Paris: Rising demand for clean energy technologies to combat climate change is shaping the future with investments in critical minerals, whose demand is projected to triple by 2040. Increasing geopolitical competition has made critical minerals not only an economic but also a strategic priority for those aiming to strengthen their position in green energy.

According to Anadolu Agency, among the 4,000 minerals found globally, some are essential for the clean energy sector, such as lithium, nickel, cobalt, graphite, copper, and rare earths. These minerals are crucial for the green transformation and are primarily used in electric vehicles, batteries, renewable energy projects, and energy storage.

The long-term supply of critical minerals is vital for ensuring the security of the energy system. The International Energy Agency's report indicated that the demand for critical minerals, including rare earth elements, will reach around 35 million tons annually by 2040. Investments in critical minerals are anticipated to rise significantly, from $45 billion in 2023 to $800 billion by 2040.

Copper mining stands out among critical mineral investments, with production expected to generate $490 billion by 2040, followed by nickel with $160 billion and lithium with $80 billion. The global transition to clean energy has elevated critical minerals to a position of strategic importance, as rising demand benefits producing countries and encourages importer countries to enhance their domestic production and processing capacity.

Countries are increasingly turning to clean energy projects to achieve net zero emissions. The report highlighted that approximately 28.1 million tons of raw materials were excavated worldwide in 2023, and 32.6 million tons of ores were processed. The world's mineral processing capacity is expected to increase by 32% to 43.7 million tons by 2040.

The largest capacity increase is anticipated in graphite, with a 267.2% rise to 7.5 million tons, followed by lithium with a 110% increase to 370,000 tons, and rare earth elements with a 44.7% increase to 110,000 tons by 2040. Clean energy will constitute 55.2% of the global demand for lithium, nickel, cobalt, graphite, and copper mines, and 41% for rare earth elements, as per the report.