Nigeria: Global Lithium Demand To Surge 353% By 2040 – Reports

Global demand for lithium is expected to more than quadruple by 2040 as the world accelerates its shift towards clean energy technologies, electric vehicles and battery storage systems.

Naija News reports that a new report by the United Nations Conference on Trade and Development (UNCTAD) projected a 353 per cent increase in lithium demand between 2024 and the end of the next decade.

The projection reflects growing pressure on global supply chains for critical minerals used in clean energy infrastructure.

According to the UNCTAD report, energy transition minerals are becoming increasingly strategic as countries intensify decarbonisation efforts and adoption of electric vehicles expands across major economies.

The report said clean technologies would account for a much larger share of total mineral demand across several categories in the coming years.

It projected that the share of nickel demand linked to clean energy applications would rise from 17 per cent to 42 per cent.

Similarly, magnet rare earth elements, which are critical for wind turbines and electric motors, are expected to see their clean technology share increase from 21 per cent to 31 per cent.

The report also projected strong growth in demand for graphite, another major battery material.

Graphite demand is expected to increase by 131 per cent over the same period.

UNCTAD further stated that the share of lithium consumption linked to clean technologies would rise from 62 per cent in 2024 to 87 per cent by 2040.

Lithium is a major component of rechargeable batteries used in electric vehicles and grid-scale energy storage systems.

Graphite is used as the core material in battery anodes, while nickel, cobalt and rare earth elements are essential for wind turbines, power systems and other low-carbon infrastructure.

The findings have direct implications for Nigeria, which has emerged as a notable player in the lithium sector.

In 2025, the Federal Government disclosed that Chinese firms had invested over $1.3bn in Nigeria’s lithium processing industry since President Bola Tinubu assumed office.

The investment reflects growing international interest in Nigeria’s mineral assets as global demand for battery materials and other clean energy minerals continues to rise.

Nigeria’s lithium deposits have attracted attention from foreign investors seeking new sources of supply amid the global energy transition.

The report noted that rising demand for critical minerals has triggered a wave of export restrictions by resource-rich countries.

According to UNCTAD, nearly 100 new export measures have been introduced globally on critical energy transition minerals since 2020.

These include 37 licensing requirements, 31 export taxes, 29 export bans and one export quota.

The measures are aimed at helping mineral-producing countries capture greater value from their resources instead of exporting raw materials.

UNCTAD said the Democratic Republic of Congo, which holds some of the world’s largest reserves of cobalt and other transition minerals, had introduced the highest number of export measures.

China and Indonesia followed, reflecting the growing geopolitical competition over control of clean energy supply chains. The report suggested that countries are increasingly seeking to protect their mineral assets and develop domestic processing capacity.