Clean Energy Conundrum: Securing Sustainable Critical Minerals Value Chains
Description
Shifting to clean energy means moving away from fossil fuels and towards fundamentally different technologies. Unlike traditional energy systems, clean technologies rely heavily on minerals like copper, lithium, nickel, cobalt, and rare earths. As we move towards a greener future, the demand for these minerals is skyrocketing. According to IEA, Solar PV plants, wind farms and electric vehicles generally require more critical minerals to build than their fossil fuel- based counterparts. A typical electric car requires six times the mineral inputs of a conventional car and an offshore wind plant requires 13 times more mineral resources than a similarly sized gas-fired plant. The types of mineral resources used vary by technology. Lithium, nickel, cobalt, manganese and graphite are crucial to battery performance. Rare earth elements are essential for permanent magnets used in wind turbines and EV motors. Electricity networks need a huge amount of aluminium and copper, the latter of which is the cornerstone of all electricity-related technologies.
Many developing countries are major exporters of critical energy transition minerals. These include the Democratic Republic of Congo, with 55 per cent of cobalt reserves and 75 per cent of production, Chile, which has 36 per cent of lithium reserves and 20 per cent of copper and is a major lithium and copper producer, and Indonesia, which is home to 21 per cent of nickel reserves and accounts for almost half of the nickel production. Other developing countries with large reserves and production are Argentina, Brazil, China, Peru, the Philippines, Madagascar and Mozambique, to name a few.
The race for clean energy technology has ignited a global competition for secure supply chains of rare earths and critical minerals, making these essential materials a major strategic concern. The challenge includes ensuring a reliable supply of critical minerals for green energy technologies amidst the geopolitical tensions. As we rely more on critical minerals, policymakers face several challenges in bringing new production to meet surging demand, including concerns about price volatility, security of supply, effects of technological change, and the shifting sands of geopolitics. The discussion will focus on how developing countries in the Global South could benefit from the increasing global demand for critical energy transition minerals. This would include through value addition and upstream, midstream, downstream and side stream diversification to allow these countries to play a prominent role in all phases of the critical minerals value chain, from mining and processing to manufacturing of energy transition technologies.
Moderator
Speakers
Attendees
View All