Lithium Demand Set to Surge 353% by 2040 as Nigeria Attracts Global Scramble for Critical Minerals
Global demand for lithium is expected to skyrocket by 353 per cent by 2040, according to projections from the United Nations Conference on Trade and Development (UNCTAD). The surge reflects the accelerating global shift toward clean energy technologies, electric vehicles, and large-scale energy storage systems, all of which rely heavily on lithium-powered batteries.
The report highlights that this demand boom is not limited to lithium alone. Other critical minerals, including nickel, graphite, cobalt, and rare earth elements, are also expected to experience significant increases in demand as countries race to decarbonise their economies. Nickel demand linked to clean energy, for instance, is projected to more than double, while graphite use is also expected to rise sharply due to its role in battery production.
Nigeria is emerging as a growing player in this global minerals race. With rising international interest in its lithium deposits, the country has attracted significant foreign investment, particularly from Chinese firms. Reports indicate that more than $1.3 billion has already been committed to Nigeria’s lithium processing sector since President Bola Tinubu took office, signalling a shift from raw mineral extraction toward value-added processing.
However, the global scramble for these resources is also reshaping trade policies. Many resource-rich countries are introducing export restrictions to retain more value domestically. Since 2020, nearly 100 new measures have been introduced worldwide, including export taxes, licensing rules, and outright bans, as nations seek greater control over strategic minerals.
As the world accelerates toward a low-carbon future, UNCTAD warns that countries rich in critical minerals like Nigeria face a defining choice: either build strong local processing industries or risk remaining suppliers of raw materials while others capture most of the economic value.
source: The guardian