The energy transition currently underway across the globe will cause profound changes in the market for certain metals and minerals, including copper and lithium, in whose production Chile plays a leading role, according to a recent report (https://www.iea.org/reports/the-role-of-critical-minerals-in-clean-energy-transitions/executive-summary) by the International Energy Agency (IEA). The agency forecasts a sharp increase in demand for certain minerals that are key to the new energy sector. In the IEA's so-called declared policy scenario, which reflects the intentions and objectives announced to date, demand for lithium in the energy sector by 2040 will be 13 times higher than today, and demand for copper will be twice as high. In the sustainable development scenario, which involves strengthening policies and investments in clean energy, demand for lithium from the energy sector in 2040 will be 42 times higher than in 2020, and demand for copper will be three times higher. These projections have important implications. The production of these minerals—and other critical ones, such as graphite, cobalt, nickel, and rare earths—is heavily concentrated among a few producers, which will generate significant risks in the supply chain. Among other things, the agency recommends that countries create strategic reserves of these raw materials, encourage investment in more geographically diversified production projects, promote research and innovation throughout the chain, and encourage the recycling industry for these materials.
