UNCTAD – Critical Minerals

The move towards a low-carbon future has highlighted the importance of critical minerals such as lithium, cobalt, graphite, and manganese in producing clean energy technologies. Developing countries, particularly African countries, hold significant reserves of these minerals, including those needed for electric vehicles (EVs). Countries like the Democratic Republic of the Congo, Chile, and Indonesia are already playing a vital role in supplying these minerals to world markets. The demand for critical minerals has been increasing due to the growing proportion of renewables in total energy production. In a Net Zero Emissions scenario, the demand for cobalt is expected to increase by 115% and lithium by 454% from 2022 to 2030. This has led to a surge in the number of new critical minerals projects announced in recent years. Different critical minerals are required for specific applications and industries. For example, lithium, cobalt, and graphite are commonly used in lithium-ion batteries for electric vehicles. These minerals undergo processing and refinement to enhance their performance and suitability for specific applications, resulting in higher values. This can stimulate the development of downstream industries in mineral-producing developing countries. This technical note provides an overview of the trade dynamics of critical minerals and their processed forms in rechargeable lithium-ion batteries for EVs. It highlights the unique characteristics of critical mineral markets and suggests areas for further analysis to support mineral-producing developing countries in increasing domestic value addition in rechargeable battery value chains.