Alberta is poised to become one of the most competitive jurisdictions for lithium production in North America.

Today, the global energy system is in the midst of a major transition to clean energy. The efforts of an ever-expanding number of countries and companies to reduce their greenhouse gas emissions to net zero call for the massive deployment of a wide range of clean energy technologies, many of which in turn rely on critical minerals such as copper, lithium, nickel, cobalt and rare earth elements.

An evolving energy system calls for an evolving approach to energy security. As clean energy transitions accelerate globally and solar panels, wind turbines and electric cars are deployed on a growing scale, these rapidly growing markets for key minerals could be subject to price volatility, geopolitical influence and even disruptions to supply.

This World Energy Outlook special report on The Role of Critical Minerals in Clean Energy Transitions identifies risks to key minerals and metals that – left unaddressed – could make global progress towards a clean energy future slower or more costly, and therefore hamper international efforts to tackle climate change. The IEA is determined to play a leading role in enabling governments around the world to anticipate and navigate possible disruptions and avoid damaging outcomes for our economies and our planet.

Today’s supply and investment plans for many critical minerals fall well short of what is needed to support an accelerated deployment of solar panels, wind turbines and electric vehicles. Many minerals come from a small number of producers. For example, in the cases of lithium, cobalt and rare earth elements, the world’s top three producers control well over three-quarters of global output. This high geographical concentration, the long lead times to bring new mineral production on stream, the declining resource quality in some areas, and various environmental and social impacts all raise concerns around reliable and sustainable supplies of minerals to support the energy transition.

The shift to a clean energy system is set to drive a huge increase in the requirements for these minerals, meaning that the energy sector is emerging as a major force in mineral markets. Until the mid-2010s, the energy sector represented a small part of total demand for most minerals. However, as energy transitions gather pace, clean energy technologies are becoming the fastest-growing segment of demand.

In a scenario that meets the Paris Agreement goals, clean energy technologies’ share of total demand rises significantly over the next two decades to over 40% for copper and rare earth elements, 60- 70% for nickel and cobalt, and almost 90% for lithium. EVs and battery storage have already displaced consumer electronics to become the largest consumer of lithium and are set to take over from stainless steel as the largest end user of nickel by 2040.