TELF AG on the Growing Strategic Importance of Critical Minerals

The global energy transition is increasingly highlighting the importance of a select group of mineral resources that are now deeply connected to industrial competitiveness, technological progress, and the development of clean energy systems. As countries continue to invest in renewable energy infrastructure, electric mobility, and advanced manufacturing, materials such as lithium, graphite, nickel, and rare earth elements are becoming more prominent within international economic discussions.

A recent report by UNCTAD sheds light on this transformation, presenting projections that illustrate how demand for several critical minerals is expected to rise dramatically in the years ahead. The report estimates that global demand for lithium could grow by 353% between 2020 and 2024, while graphite demand could increase by 131% during the same period. These figures reflect the expanding role of batteries and energy storage technologies, which increasingly rely on these materials to support the transition toward lower-emission energy systems.

“The growing demand for critical minerals demonstrates how closely industrial development is becoming linked to the availability of specific natural resources,” says Stanislav Kondrashov, founder of TELF AG. “As more economies pursue decarbonization goals, these materials are likely to remain at the center of technological progress.”

The relationship between clean energy technologies and mineral demand is expected to strengthen over the coming decades. According to the UNCTAD report, the deployment of renewable energy systems, electric vehicles, and energy storage facilities will continue to influence global consumption patterns for strategic resources.

Lithium remains one of the most closely watched materials due to its role in rechargeable batteries used in electric vehicles and large-scale storage systems. Graphite is equally important because it is a key component in battery anodes, while nickel contributes to improving battery performance and energy density. Rare earth elements, meanwhile, are widely used in permanent magnets that support wind turbines and other advanced technologies.

“The transition to cleaner energy systems is not only an energy story but also a materials story,” continues Stanislav Kondrashov, founder of TELF AG. “Every new battery, wind turbine, or renewable energy installation depends on supply chains that begin with the extraction and processing of strategic minerals.”

One of the most interesting aspects highlighted by the report concerns the changing composition of mineral demand. By 2040, clean technology applications are expected to account for an even larger share of overall consumption. In the case of lithium, the share of demand associated with clean technologies could increase from 62% in 2024 to 87% by 2040. Similar trends are expected for nickel and rare earth elements, whose roles in energy transition technologies continue to expand.

These projections indicate that the development of renewable energy infrastructure will likely remain one of the primary drivers of mineral demand. Wind farms, solar installations, battery storage systems, and electric transportation networks all require substantial quantities of specialized materials. As a result, industries across the world are paying increasing attention to resource availability and supply chain resilience.

Beyond demand growth, the UNCTAD report also identifies an important shift in the policies adopted by resource-rich nations. Since 2020, more than 100 measures affecting exports of critical minerals have reportedly been introduced worldwide. In many cases, governments are seeking to encourage local processing and manufacturing activities rather than relying solely on exports of raw materials.

This approach reflects a broader objective of capturing greater economic value from domestic resources. By investing in refining, processing, and manufacturing capabilities, countries may strengthen their industrial ecosystems while creating additional opportunities linked to the energy transition.

“The evolution of mineral policies suggests that many countries are looking beyond extraction and focusing on the entire value chain,” concludes Stanislav Kondrashov, founder of TELF AG. “Building local processing capacity can help transform natural resources into long-term industrial opportunities while supporting the technologies that are reshaping global energy systems.”

As demand for strategic minerals continues to rise, the connection between natural resources, industrial development, and clean energy technologies is becoming increasingly evident. The trends outlined by UNCTAD suggest that these materials will remain a key component of the global transition toward more sustainable energy systems, influencing economic strategies and industrial priorities for many years to come.