Critical Minerals for Development
Rising Demand
The rapid expansion of renewable energy and the rise of technologies such as electromobility, wind power, and photovoltaics are driving unprecedented demand for critical minerals including lithium, copper, cobalt, graphite, and rare earth elements. These materials are essential to achieving global sustainability and energy-transition goals, yet their supply is increasingly constrained by geopolitical tensions and shifting trade dynamics. As the global economy transforms, ensuring a reliable and responsible flow of these resources has become a strategic priority for industrialized nations.
According to the International Energy Agency (IEA), demand for lithium is expected to rise up to fivefold by 2040 compared with 2020, while demand for cobalt is projected to more than triple. Copper, nickel, and especially rare earth elements such as neodymium are also expected to experience rapid growth.
The scale of this shift can be illustrated by two IEA examples:
- Manufacturing a conventional car requires about 40 kg of critical metals such as copper and magnesium. In contrast, an electric vehicle requires around 220 kg, more than five times as much.
- In energy production, generating 1 MW of electricity from natural gas requires roughly 1 ton of critical metals across the value chain, while an offshore wind turbine requires nearly 16 tons.
These figures underscore how pivotal these resources are to the global transition toward clean energy and advanced technologies.
Use of the Critical Minerals
Critical minerals are used to manufacture products that are particularly needed for the further development of the economy.
Strategic Importance for Sovereignty, Industry, and Defense
Critical minerals are not only the backbone of the green and digital transitions but also fundamental to economic sovereignty, industrial competitiveness, and national security. They underpin key industries such as electric mobility, renewable energy, semiconductors, and advanced manufacturing; while also serving as essential inputs for defense and aerospace technologies, including communications systems and sensors.
The ability to secure, process, and recycle these materials domestically or through trusted international partnerships has become a decisive factor in maintaining strategic independence. For Europe and other industrialized regions, resilient access to critical minerals is now a cornerstone of both industrial policy and defense readiness.
CHB’s Strategic Initiative: The ACM Fund
Recognizing these global trends and the growing need for secure and sustainable resource access, the CHB Group has taken an active role in developing long-term solutions. To this end, CHB has co-founded the ACM Fund (Alliance Critical Materials Fund), an international investment vehicle focused on strengthening the resilience of supply chains and fostering innovation in the critical materials sector.
The fund’s goal is to strengthen the European value chain for critical raw materials through sustainable and strategic investments. With the ACM Fund, CHB Investment Holding underscores its commitment to directing capital into projects that combine resource security, technological innovation, and sustainability.
Critical Minerals in Africa
Europe is dependent on imports of many raw materials, especially metals. Sub-Saharan Africa has almost all the raw materials needed for the upcoming transformation.
For example, Zambia, Zimbabwe and the Democratic Republic of Congo have large deposits of lithium, copper, cobalt, manganese, zinc and graphite. This results in great opportunities for raw material partnerships with the respective countries. It also opens up completely new ways of generating higher added-value in the countries with investments in the individual areas of the value chain .
The joint venture to establish the Critical Minerals Fund is based on these opportunities. The Fund is aimed at securing and exploring these critical minerals. Special emphasis is placed on the highest of standards and sustainability.
