Türkiye is positioning critical minerals at the center of its sweeping energy transformation strategy, Energy and Natural Resources Minister Alparslan Bayraktar said on Tuesday, highlighting plans to build a full value chain from extraction to high-tech manufacturing.

Speaking at the OECD Critical Minerals Forum, Bayraktar said the country's structural shift toward cleaner energy and electrification depends increasingly on secure access to and processing of key raw materials.

"Having resources alone is no longer sufficient. You must be able to process them," he said. "Türkiye is building exactly that, combining extraction with deep processing capacity and high-tech industrial value creation."

Bayraktar said rising electricity demand, fueled by electric vehicles, data centers and rapid electrification, is accelerating the importance of critical minerals.

"Last year, global energy demand rose by 1.3%, but electricity demand grew at more than twice that pace," he said. "We have officially entered the 'age of electricity.'"

He added that materials used in wind turbines, batteries, semiconductors and advanced manufacturing are now indispensable for modern economies, making resilient supply chains a strategic priority.

More than 62% of Türkiye's installed electricity capacity is currently generated from renewable sources, and Bayraktar reiterated a target to raise wind and solar capacity to 120 gigawatts by 2035.

To support that expansion, Ankara is planning roughly 40 gigawatts of High Voltage Direct Current (HVDC) transmission lines to strengthen grid integration and system flexibility.

"These investments represent a large-scale structural transformation, and at the heart of it lie critical minerals," Bayraktar said.

He also said the government would soon announce Türkiye's comprehensive Critical Raw Materials strategy.

Beylikova project anchors strategy

The Beylikova rare earths project in the central Eskişehir province is dubbed a cornerstone of the country's emerging road map.

Bayraktar described it as potentially one of the largest deposits globally.

A pilot facility at the site is already operational, with plans to scale up to industrial production, including separation and processing capabilities.

The project aims to produce rare earth oxides used in permanent magnets for wind turbines and electric vehicle motors, said Bayraktar.

He said the state-owned miner Eti Maden is working with partners to establish a full value chain, from extraction to advanced materials production.

Supply chain risks, partnerships

Bayraktar warned that global production and processing of critical minerals remain heavily concentrated in a few regions, creating structural vulnerabilities.

"This imbalance directly affects energy security and industrial resilience," he said, calling for stronger international partnerships that go beyond financing to include technology transfer.

He also stressed the need for transparent and liquid global markets, noting that many critical mineral markets remain small and lack robust pricing mechanisms.

"No country should be allowed to use volume dominance against a fragmented buyer base," he said.

Also speaking at the forum, Trade Minister Ömer Bolat said geopolitical tensions are becoming more complex and persistent, disrupting trade routes, increasing costs and weakening predictability.

"We are witnessing a structural transformation toward a more fragmented and less predictable global trade environment," Bolat said, pointing to rising protectionism, expanded state support for strategic sectors and growing emphasis on economic security.

He stressed that challenges surrounding critical minerals are part of this broader shift, as these resources become indispensable for both clean energy and digital technologies.

Demand surge, supply concentration

Bolat highlighted a sharp rise in demand for key minerals over the past decade, noting that lithium demand has increased roughly fourfold, while demand for cobalt and rare earth elements has nearly doubled.

"This trend is expected to continue as electric mobility, renewable energy and advanced electronics expand," he said.

However, supply remains highly concentrated geographically, creating vulnerabilities. Bolat noted that the Democratic Republic of Congo accounts for roughly three-quarters of global cobalt output, while Indonesia and the Philippines dominate nickel production, and Australia and Chile lead lithium supply.

"This concentration creates strategic vulnerabilities for importers and risks structural imbalances if resource extraction is not matched with local value creation and technology transfer," he said.

Energy crisis

The Iran war is causing one of the most significant energy crises the world has seen in its recent history, Bayraktar said.

The ​two-month-long conflict is at an impasse, with energy and other supplies through the critical Strait of Hormuz still mainly shut, pushing ​oil prices above $110 a barrel on Tuesday.

"These developments show that regional conflicts have global consequences," Bayraktar said, adding that supply security and price volatility remain the most pressing concerns.

Iran has imposed restrictions on shipping using ​the Strait of Hormuz since after the U.S. and Israel launched strikes on Feb. 28. The U.S. on April 13 announced it would blockade Iran-related shipping.

The strait typically handles 20% of the world's daily supply of oil and LNG. And activity has remained curtailed ​through it as talks between Iran and the United States remain stalled.