PARIS: Market for minerals key to clean energy transition soared to $ 320 billion last year but faces challenges including volatile prices, supply chain snarls and geopolitical tensions, International Energy Agency said Tuesday.

Market for minerals such as lithium, cobalt, nickel and copper doubled between 2017 and 2022, fuelled by record deployment of clean technologies such as solar panels and electric car batteries, according to IEA. "Rapid growth in demand is providing new opportunities for industry," Paris-based agency said in its first annual IEA Critical Minerals Market Review.

"But combination of volatile price movements, supply chain bottlenecks and geopolitical concerns has created potent mix of risks for secure and rapid energy transitions," it added.

IEA, which advises developed nations on energy policies, said "Affordability and speed of energy transitions" will depend on availability of critical mineral supplies. Most prices began to moderate in latter half of 2022 and into 2023, but they remain well above historical averages, IEA said. "As things stand, 2023 could be crucial year for clean energy technology prices," report said.

"Whether and how quickly they resume downward trajectory will depend on speed of innovation and on stability of mineral markets that witnessed significant volatility in 2022 after two years of pandemic-related supply chain disruptions followed by onset of global geopolitical uncertainty."