Critical Mineral Allocation Beyond Energy Transition

Recent analysis suggests that the majority of critical minerals are currently allocated to sectors distinct from the energy transition. This perspective challenges some prevailing narratives regarding the primary drivers of mineral demand.

An assessment by the Oakland Institute, utilising data from the International Energy Agency (IEA), examined the consumption patterns for several key minerals. These included copper, lithium, nickel, cobalt, graphite, and magnet rare earths.

The findings indicate that in 2024, approximately 26% of the combined demand for these specified minerals was attributed to renewable energy applications. This category encompassed wind and solar power generation, associated power networks, grid-scale battery storage, and electric vehicles.

Conversely, the analysis assigned the remaining 74% of the demand for these critical minerals to a broader range of industrial and consumer sectors. These applications included construction, conventional transport systems, industrial machinery, defence, and electronics, among others.

This distribution highlights the diverse and extensive industrial requirements for critical minerals, extending well beyond the immediate needs of the energy transition. The data offers a comprehensive view of current mineral consumption across various global economic activities.