Critical Minerals Demand Surges as Supply Gaps Persist

The International Energy Agency (IEA) has released a report predicting that global demand for critical minerals will surge through 2040, driven by the growth of electric vehicles, renewable energy, and electricity networks. The agency warns that supply gaps for key minerals like copper and lithium may persist due to a lack of investment in mining and refining.

The IEA estimates that meeting future demand will require over $750 billion in investment between now and 2040. Copper is expected to account for the largest share of this investment, with over $310 billion allocated, followed by nickel at $280 billion.

According to the report, lithium demand is set to more than triple by 2040, while graphite demand is expected to double and nickel demand will increase by 65%. Rare earth demand is projected to rise by around 50%, and copper demand will grow by over 25% by 2040.

The IEA notes that despite a growing pipeline of mining projects, supply gaps for copper and lithium could remain through 2035. The agency also warns of bottlenecks in refining and downstream processing, as China currently dominates global refining capacity for many critical minerals.