IEA Warns of Critical Mineral Shortages Amid Electric Vehicle Boom

The International Energy Agency (IEA) has released a report predicting that global demand for critical minerals will surge through 2040. The main drivers of this growth are the expansion of electric vehicles, battery storage, renewable energy, and electricity networks.

According to the IEA, meeting future demand will require more than $750 billion in investment in mining and refining between now and 2040 under the Stated Policies Scenario (STEPS). Copper is expected to account for the largest share of this investment at about $310 billion, followed by nickel at $280 billion.

The IEA projects that lithium demand will more than triple by 2040 under STEPS, while graphite demand is expected to double and nickel demand to increase by 65%. Rare earth demand is projected to rise by around 50%, while copper demand is set to grow by more than 25%.