Record distribution for new renewables has surged in recent years, driven by the energy transition and the materials needed for batteries and power storage. Copper, nickel, lithium, cobalt, and graphite play central roles in electric vehicles, grid storage, solar panels, and wind turbines. A recent estimate places the cumulative investment in these minerals at around 320 billion euros between 2017 and 2022, based on an International Energy Agency assessment.
In concrete terms, demand profiles reflect the rise of electric cars, battery storage, and green energy infrastructure. Lithium demand has tripled, cobalt demand climbed about 70 percent, and nickel demand rose roughly 40 percent. The OECD’s coordinating body for energy policies notes that member states are doubling or tripling their efforts under current projections for 2030.
The key question remains: will supply keep pace? The IEA’s stance is cautiously optimistic, highlighting investments and a roughly 30 percent boost in critical minerals last year and a 20 percent gain in 2021. Lithium projects attracted especially strong investment, followed by copper and nickel, with exploration expenses growing about 20 percent overall. Lithium soared by about 90 percent, while uranium has surged recently amid renewed interest in nuclear energy and nickel activity.
Supply could be considered sufficient if all planned projects proceed on schedule. Governments have promised climate action, the IEA notes; yet delays and other obstacles could squeeze margins and bandwidth for new developments.
The issue matters beyond numbers. A crucial discussion kicks off with the European Union Energy Ministers Meeting slated for this year. An informal EU Energy Council gathering in Valladolid aims to strengthen the European value chain and ensure a resilient supply of critical minerals.
low diversification
In response, a substantial portion of investment has flowed to Chinese mining operations, with many projects concentrated in Australia and Canada. The report notes progress in diversification of resource bases over the past three years, yet resources remain scarce and concentration persists in certain cases, casting a cautious outlook for the years ahead.
Almost half of planned lithium chemical capacity is centered in China, and about 90 percent of nickel refining capacity is in Indonesia. Together, China, Canada, and Australia account for around 93 percent of cobalt projects. The analysis warns that nations with mineral endowments seek a stronger position higher up the value chain, while consumer economies seek diversified sources for refined metals. The global system has yet to complete a robust diversification of intermediate supply chains.
venture capital
Overall venture capital activity in this sector cooled, even as record volumes flooded into tech startups elsewhere. In the minerals space, funding reached about 1.6 billion dollars, up roughly 160 percent from the prior year. By 2022, battery recycling emerged as a major focal point for venture investments, alongside the traditional pull of copper, silicon, and rare earths. A notable example is the Green Li ion project in Singapore, which earned around 35 million dollars in funding from a major energy company between 2022 and 2023. This trend reflects ongoing investments in lithium extraction and refining as energy demand accelerates.