Leveraging Critical Energy Transition Minerals

The rapid adoption of renewable energy technologies and the transition away from fossil fuels are vital for combating climate change. Achieving net-zero carbon dioxide (CO2) emissions by 2050 will require much faster deployment of clean energy technologies, including wind turbines, solar panels, electric vehicles (EVs) and battery storage systems. This shift is fueling a sharp rise in demand for critical energy transition minerals such as copper, cobalt, lithium, nickel, and rare earth elements, particularly as developing countries work to achieve universal energy access and diversify their economies. For instance, an onshore wind power plant requires nine times more mineral inputs than a gas-fired plant of the same capacity, while an EV needs six times more minerals than a conventional car. Additionally, the average mineral requirement for new power generation capacity increased by 50 per cent during the 2010s, driven by the growing share of renewables in total capacity additions. Against this backdrop, countries rich in critical mineral resources have an opportunity to unlock significant development benefits. These minerals can attract foreign and domestic investment, create jobs, and boost fiscal revenues, exports, and overall economic growth. However, quantifying the economic scale of the mining industry remains challenging, especially due to the volatility of mineral prices, which directly impact valuations.