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The Raw Material Needs of Energy Technologies

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demand from energy technologies

The Raw Materials in Energy Technologies

Behind every energy technology are the raw materials that power it, support it, or help build it.

From the lithium in batteries to the copper cabling in offshore wind farms, every energy technology harnesses the properties of one or the other mineral. And the world is shifting towards clean energy technologies, which are more mineral-intensive than their fossil-fuel counterparts.

The above infographic uses data from the World Bank’s Climate Action report and charts the 2050 demand for 15 minerals from energy technologies, as a percentage of 2020 production.

Material Demand from Energy Technologies

Energy sources make use of various minerals that offer different properties and functionalities.

For instance, geothermal power plants use steel alloys with large quantities of titanium to withstand high heat and pressure. Similarly, solar panels use silver for its high conductivity, and hydropower plants use steel alloys with chromium, which hardens steel and makes it corrosion-resistant.

The demand for these energy technologies and minerals will grow alongside our energy needs. Here are some of the minerals that are expected to see increasing demand from energy technologies through 2050, relative to current production levels:

Mineral2020 Production (thousand tonnes)2050 Annual Projected Demand (thousand tonnes)2050 Demand as a % of 2020 Production
Lithium82415506%
Cobalt140644460%
Graphite1,1004,590417%
Indium0.91.73192%
Vanadium86138161%
Nickel2,5002,26891%
Silver251560%
Lead4,40078118%
Molybdenum3003311%
Copper20,0001,3787%
Aluminum65,2005,5839%
Manganese18,5006944%
Chromium40,0003660.92%
Iron1,500,0007,5840.51%
Titanium8,2003.440.04%

Lithium, cobalt, and graphite—the key ingredients of EV batteries—will see the largest increases in demand, each requiring more than a 400% increase relative to 2020 production. These figures can look even more substantial once we bear in mind that this demand is only from energy technologies, and these minerals have other uses too.

Indium and vanadium may be among the lesser-known minerals in this list, however, they are important. Indium demand is expected to rise to 1,730 tonnes by 2050—largely because of demand from solar energy. Similarly, vanadium may also see a large spike in demand due to the growing need for energy storage technologies.

On the other end of the spectrum, iron and aluminum have the largest demand figures in absolute terms. However, miners already produce large quantities of these minerals, and their demand in 2050 represents less than 10% of current production levels.

The Supply and Demand Equation

Although some metals are available in abundance within the Earth’s crust, their demand and supply don’t always match up.

For example, falling copper ore grades in Chile are raising concerns over copper’s long-term supply and Citigroup projects a 521,000-tonne copper shortage for 2021. In addition, a large portion of lithium, cobalt, and graphite production occurs in a few regions, putting the battery supply chain at risk of disruptions.

While supply may be in uncertain territory, it’s extremely likely that demand will rise. As the world transitions to clean energy, a sustainable supply of these minerals could be key to meeting the raw material needs of energy technologies.

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Energy Shift

How Many New Mines Are Needed for the Energy Transition?

Copper and lithium will require the highest number of new mines.

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This graphic estimates the number of mines needed to meet the 2030 demand for energy transition materials.

How Many New Mines Are Needed for the Energy Transition?

The energy transition relies on the minerals necessary to build electric vehicles, batteries, solar farms, and wind turbines. In an economy moving away from fossil fuels every day, sourcing the materials required for this shift presents one of the biggest challenges.
This graphic forecasts the number of mines that must be developed to meet the expected demand for energy transition raw materials and chemicals by 2030. This data comes exclusively from Benchmark Mineral Intelligence as of November 2024.

Nearly 300 Mines

According to Benchmark Mineral Intelligence, meeting global battery demand by 2030 would require 293 new mines or plants.

Mineral2024 Supply (t)2030 Demand (t)Supply Needed (t)No. of Mines/PlantsType
Lithium1,181,0002,728,0001,547,00052Mine
Cobalt272,000401,000129,00026Mine
Nickel3,566,0004,949,0001,383,00028Mine
Natural Graphite1,225,0002,933,0001,708,00031Mine
Synthetic Graphite1,820,0002,176,000356,00012Plant
Manganese90,000409,000319,00021Plant
Purified Phosphoric Acid6,493,0009,001,0002,508,00033Plant
Copper22,912,00026,576,0003,664,00061Mine
Rare Earths83,711116,66332,95229Mine

Copper, used in wires and other applications, and lithium, essential for batteries, will require the most significant number of new mines.

Manganese production would need to increase more than fourfold to meet anticipated demand.

Not an Easy Task

Building new mines is one of the biggest challenges in reaching the expected demand.

After discovery and exploration, mineral projects must go through a lengthy process of research, permitting, and funding before becoming operational.

In the U.S., for instance, developing a new mine can take 29 years.

In contrast, Ghana, the Democratic Republic of Congo, and Laos have some of the shortest development times in the world, at roughly 10 to 15 years.

 

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Energy Shift

Visualizing Europe’s Dependence on Chinese Resources

Europe depends entirely on China for heavy rare earth elements, critical for technologies such as hybrid cars and fiber optics.

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This graphic shows the percentage of EU raw material supply sourced from China for 12 raw materials used in various industries.

Visualizing Europe’s Dependence on Chinese Resources

This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.

Despite efforts by European countries to reduce their reliance on China for critical materials, the region remains heavily dependent on Chinese resources.

This graphic shows the percentage of EU raw material supply sourced from China for 12 raw materials used in various industries. Bloomberg published this data in May 2024 based on European Commission research.

China’s Dominance in Clean Energy Minerals

Europe is 100% dependent on China for heavy rare earth elements used in technologies such as hybrid cars, fiber optics, and nuclear power.

Additionally, 97% of the magnesium consumed in Europe, for uses ranging from aerospace alloys to automotive parts, comes from the Asian country.

Raw MaterialPercentage Supplied by ChinaUsage
Heavy rare earth elements100%nuclear reactors, TV screens, fiber optics
Magnesium97%Aerospace alloys, automotive parts
Light rare earth elements85%Catalysts, aircraft engines, magnets
Lithium79%Batteries, pharmaceuticals, ceramics
Gallium71%Semiconductors, LEDs, solar panels
Scandium67%Aerospace components, power generation, sports equipment
Bismuth65%Pharmaceuticals, cosmetics, low-melting alloys
Vanadium62%Steel alloys, aerospace, tools
Baryte45%Oil and gas drilling, paints, plastics
Germanium45%Fiber optics, infrared optics, electronics
Natural graphite40%Batteries, lubricants, refractory materials
Tungsten32%Cutting tools, electronics, heavy metal alloys

Almost 80% of the lithium in electric vehicles and electronics batteries comes from China.

Assessing the Risks

The EU faces a pressing concern over access to essential materials, given the apprehension that China could “weaponize” its dominance of the sector.

One proposed solution is the EU’s Critical Raw Materials Act, which entered into force in May 2024.

The act envisions a quota of 10% of all critical raw materials consumed in the EU to be produced within the EU.

Additionally, it calls for a significant increase in recycling efforts, totaling up to 25% of annual consumption in the EU. Lastly, it sets the target of reducing dependency for any critical raw material on a single non-EU country to less than 65% by 2030.

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