With the continuous improvement of technology and efficiency, solar photovoltaic will become the most competitive power source. And with appropriate policy support, solar energy will be deployed at an unprecedented pace in the next decade. Under the sustainable development scenario, solar energy will produce 13 times the amount of electricity in 2040, equivalent to 2019. At the same time, investment in the power grid will become more critical for the consumption of renewable energy and the reliability of the power system.
The International Energy Agency (IEA) pointed out that the growth of demand for solar photovoltaic will drive the huge demand for copper worldwide.
This report, titled '2023 Critical Mineral Market Review,' describes how achieving the global clean energy goals will lead to significant changes in demand for some key minerals such as copper, lithium, and nickel. The International Energy Agency (IEA) said in its first annual assessment report on key mineral industries that the rapid growth of demand for key minerals has brought new opportunities in investment and metal sources, but supply chain bottlenecks, price fluctuations and other factors pose major risks and challenges to supply.
The IEA states that key minerals such as cobalt, nickel, and lithium are increasingly important for energy security. These minerals can be used in renewable technologies such as electric vehicles, energy storage, and wind turbines. On top of a 20% increase in 2021, investment in developing key minerals increased by 30% to over $40 billion last year.
The IEA stated that the market size of key minerals (production multiplied by price) is estimated to be $320 billion. Although far below the $2 trillion scale of the oil and gas market, it still achieved significant growth.
The changes in global copper demand are particularly important for the solar energy industry. Copper is a key component of solar modules. Many components use copper backplates with high conductivity, which allows them to run for a long time, which is also reflected in the use of copper in existing solar equipment.