BAKU, Azerbaijan, March 30. Demand for critical materials is projected to grow rapidly as sustainable technologies are deployed over the coming decades as part of renewable energy generation and the electrification of the energy system, Trend reports with reference to the World Energy Transition Outlook published by the International Renewable Energy Agency (IRENA).
Critical materials are the resources, typically metals and minerals, needed to produce a wide range of modern products, such as smartphones, medical equipment and technologies for the energy transition. The unique characteristics of these materials have catapulted numerous technologies, including wind turbines, solar panels and batteries for EVs to the forefront of the energy transition.
IRENA provides an overview of the main energy transition technologies that will increase demand for critical materials: Permanent magnets for wind turbines require rare earth metals such as neodymium and dysprosium; Permanent magnets for electric vehicles require rare earth metals such as neodymium and dysprosium; Batteries for electric vehicles and stationary battery systems typically use lithium; Solar energy technologies use large amounts of copper and silver; The transmission and distribution cables that make up the electricity grid are composed largely of copper.
When material prices are high, mining activity often increases, expanding supply. Once increases in supply reduce scarcity, prices fall, and the process begins again in a matter of months or years.
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