The global transition to clean energy is gaining momentum, heavily relying on renewable technologies such as solar PV cells and wind turbines, alongside energy transition solutions like hydrogen, energy storage, and carbon capture. This shift has triggered an unprecedented surge in demand for critical minerals, posing significant challenges in achieving international energy transition goals, says GlobalData, a leading data and analytics company.

GlobalData’s latest Strategic Intelligence report, Critical Minerals (2024), identifies several main challenges to scaling clean energy technologies: mineral depletion, resource monopolization, geopolitical tensions, and water scarcity.

Martina Raveni, Strategic Intelligence Analyst  at GlobalData, comments: “The near-term depletion of critical minerals raises concerns, especially as instability in the green technologies market causes price volatility. Lower-grade ores complicate extraction, making it less efficient, particularly in the copper industry. Recycling is expected to play a key role in diversifying supply chains.”

Many critical minerals are concentrated in specific regions, creating uneven resource distribution and volatile market dynamics. For example, much of the world’s lithium reserves are concentrated in South America and Australia, while the Democratic Republic of the Congo (DRC) provides much of the world’s cobalt, and Indonesia dominates nickel production.

Raveni adds: “Geographic monopolies worsen supply risks and are further exacerbated by geopolitical tensions, environmental, social, and governance (ESG)  disclosure rules, and environmental factors like water scarcity. The race to control these critical minerals has intensified rivalries between China, the US, and the EU, with China currently dominating the mineral supply chain and energy transition technologies.

These tensions have led to the introduction of sanctions by Western nations to level the playing field, which has disrupted global supply chains, leading to market volatility. In response, China banned rare earth elements (REEs) in 2023, escalating the situation further.

Raveni concludes: “Given these issues, there are concerns that shortages of critical minerals may make it harder for nations to achieve energy transition goals.”

Critical minerals are concentrated in specific regions, creating uneven resource distribution and volatile market dynamics. Geographic monopolies increase supply risks and are further exacerbated by geopolitical tensions, ESG disclosure rules, and environmental factors like water scarcity. The race to control these critical minerals has intensified rivalries between China, the US, and the EU, with China currently dominating the mineral supply chain and energy transition technologies.

The ‘Critical Minerals’ strategic intelligence report provides an overview of the critical minerals theme. It identifies the main trends surrounding critical minerals and the energy transition, split into three categories: technology trends, macroeconomic trends, and regulatory trends. The 

Critical Minerals – Key Trends

The main trends that will shape the critical minerals theme are classified into technology, macroeconomic, and regulatory trends.

• Technology trends: The key technology trends impacting the critical minerals theme are advances in the energy density of lithium-iron-phosphate, the use of sodium-ion batteries, and the solar industry transition among others. Recent advances in the energy density of lithium-iron-phosphate (LFP) batteries will increasingly compete with conventional lithium-ion batteries for electric vehicle (EV) and stationary storage applications. Tesla and BYD, among others, are basing some EV models on LFP batteries.
• Macroeconomic trends: China’s mineral dominance, demand for electric vehicles, and the growth of solar energy are a few of the macroeconomic trends impacting the critical minerals theme. China has secured a monopoly over the supply of several critical minerals, including lithium, graphite, REEs, nickel, and cobalt.
• Regulatory trends: The main regulatory trends impacting the critical minerals theme are the US Inflation Reduction Act and Phase out-of-combustion vehicles, and European policy accelerating hydrogen power deployment.

• The global transition to clean energy faces significant challenges due to critical supply-side risks in the mining sector. Four key risks stand out: mineral depletion, resource monopolization, geopolitics, and water stress. The near-term depletion of critical minerals raises concerns, especially as instability in the green technologies market causes price volatility. Lower-grade ores complicate extraction, making it less efficient, particularly in the copper industry. Recycling is expected to play a key role in diversifying supply chains.
• Many critical minerals are concentrated in specific regions, creating uneven resource distribution and volatile market dynamics. For example, much of the world’s lithium reserves are concentrated in South America and Australia, while the Democratic Republic of the Congo (DRC) provides much of the world’s cobalt, and Indonesia dominates nickel production. Geographic monopolies worsen supply risks and are further exacerbated by geopolitical tensions, ESG disclosure rules, and environmental factors like water scarcity. The race to control these critical minerals has intensified rivalries between China, the US, and the EU, with China currently dominating the mineral supply chain and energy transition technologies. Starting in 2019, these tensions have led to the introduction of sanctions by Western nations to level the playing field, which has disrupted global supply chains, leading to market volatility. In response, China banned rare earth elements (REEs) in 2023, escalating the situation further.