Summary

The United Nations Conference on Trade and Development (UNCTAD) hanalyzed the role of mineral resources in the context of the energy transition. Rare earth elements and critical minerals such as graphite, cobalt, lithium, copper, and nickel form the basis for renewable energy and high-tech manufacturing. However, the high concentration of extraction and processing creates supply risks amid rising geopolitical tensions. In 2024, the Democratic Republic of the Congo accounted for around 75% of global cobalt production; Indonesia and the Philippines for more than 60% of nickel production; and Australia and Chile for more than 50% of lithium production. Another key challenge is uneven participation in value chains. China accounts for 70% of global rare earth mining and more than 85% of rare earth processing capacity. In 2022, refined graphite, cobalt, lithium, and nickel were worth three to four times more than the corresponding raw materials. UNCTAD emphasizes that critical minerals can become a driver of economic development, but without targeted policies they risk reinforcing dependence on raw material exports. Market mechanisms alone do not ensure inclusive development. Unlocking this potential requires active industrial policy aimed at developing processing capacity, building domestic value chains, and investing in infrastructure, technology, and skills.