IEA: Critical Minerals Demand to Triple by 2040, $750B Needed
UPSC / SSC current affairs note · Economy
Why in news
The International Energy Agency (IEA) has released a report projecting a tripling of global demand for critical minerals like copper and lithium by 2040, driven by the growth of electric vehicles (EVs) and renewable energy technologies. The report highlights the need for over USD 750 billion in investment to meet this demand, while warning of persistent supply gaps and refining bottlenecks. This is crucial for India's energy transition and strategic planning.
Background
Critical minerals are essential for clean energy technologies, including batteries for EVs, wind turbines, and solar panels. The IEA has been tracking mineral demand for energy transitions, and this report updates earlier projections, emphasizing the urgency of investment in mining and processing.
Key facts
Global demand for critical minerals like copper and lithium is projected to triple by 2040.
The surge is driven by the adoption of electric vehicles (EVs) and renewable energy technologies.
Over USD 750 billion in investment is needed to meet the projected demand.
Supply gaps and refining bottlenecks are expected to persist, posing supply chain risks.
The report is from the International Energy Agency (IEA).
Prelims pointers
- IEA: International Energy Agency, an autonomous intergovernmental organization.
- Critical minerals: copper, lithium, cobalt, nickel, rare earths, etc.
- Relevance: EV batteries, wind turbines, solar panels.
- Projection year: 2040.
Mains angles
- Discuss the strategic importance of critical minerals for India's energy transition and national security.
- Examine the challenges and opportunities in securing critical mineral supply chains for India.
- Analyze the role of international cooperation in ensuring sustainable and resilient mineral supply chains.