Mineral Wealth and Electrification

The energy transition represents a significant opportunity for countries producing the materials critical to electrification. In this series, we look at eight such materials: aluminum, cobalt, copper, natural graphite, iron, lithium, manganese, and nickel. As demand for so-called “critical minerals” grows, producer countries must develop robust strategies for effective value capture to transform a temporary windfall into an opportunity to grow shared wealth and climb the value chain. Doing so demands both institutional capacity and political will. 

Key takeaways

• Electrification is driving a growing demand for critical minerals, creating new opportunities for producer countries rich in these materials, as represented in our interactive online transition-critical minerals map.
• While criticality is often considered in light of the needs of countries consuming these materials as inputs of higher value-added products, we adopt a producer-country perspective centered on the potential for wealth creation and public value capture and investment.
• Sovereign wealth funds and other revenue management strategies can play a vital role in managing volatile commodity revenues, providing stability and promoting long-term investment.