06:11 AM EDT, 05/17/2024 (MT Newswires) -- Prices for critical minerals used in clean energy technologies dropped in 2023, but investment in mining these minerals slowed even as major additional spending is needed to meet global energy and climate objectives, the International Energy Agency said in its Global Critical Minerals Outlook 2024 released Friday.

The price drop was due to supply outpacing surging demand for critical minerals, which are used in electric vehicles, wind turbines, solar panels and other clean energy technologies. Lithium prices dropped 75% and prices of cobalt, nickel and graphite saw decreases of between 30% and 45%, helping drive battery prices 14% lower, the IEA said.

However, lower prices have provided a headwind for new investment, the report found. In 2023, investment in critical minerals mining grew by 10% and exploration spending increased 15%, which were still healthy but slower than in 2022.

The outlook noted that demand for critical minerals continues to grow, driven by clean energy technology deployment. Today's combined market size of key energy transition minerals is set to more than double to $770 billion by 2040 in a pathway to net-zero emissions by mid-century.

Detailed project-by-project analysis suggests that announced projects are only enough to meet 70% of copper and 50% of lithium requirements in 2035. Markets for other minerals look more balanced, the IEA said.