Critical minerals in the energy transition What are they and what is their future

Introduction

The transition to renewable energy sources relies heavily on critical minerals, which are necessary for technologies such as batteries and solar panels. However, the extraction and processing of these minerals pose significant environmental and social challenges. As the global commitment to clean energy accelerates, the foundation of tomorrow’s energy systems demands a transformative approach to sourcing, refining and reusing materials.

Critical minerals, indispensable for technologies such as solar panels, wind turbines and electric vehicle batteries, are at the heart of this transition. However, their extraction, supply chain management and life cycle require a paradigm shift to meet growing global energy goals while preserving environmental and social integrity.

This article explores the key challenges associated with the extraction of critical minerals, including carbon emissions, social and biodiversity impacts and circularity gaps. It also examines possible solutions to mitigate these problems and explores three strategic approaches to minimize the impact of critical minerals: redesigning products and business models, and introducing sound policies.

The backbone of the energy transition: Critical minerals

This energy transformation requires mining engineering experts and decision makers to rethink traditional methods and embrace innovation. Advanced economies must provide strategic support to communities that depend on mineral extraction, enabling sustainable integration into diversified economies.

In this context, critical minerals are more than resources; they are strategic enablers of a cleaner, more sustainable future. By promoting policies that incentivize innovation and sustainability, stakeholders can shape an ecosystem that protects natural resources while meeting the unprecedented demand for critical minerals; this will determine the success of the energy transition and ensure its benefits for future generations.

The International Energy Agency (IEA) highlights in a recent report that the market for critical minerals is growing at an unprecedented rate due to increased investment driven by demand for clean energy. However, it warns that more work is needed to ensure a diversified and sustainable supply of these minerals to support the energy transition. According to the report, the market for essential minerals for technologies such as electric vehicles, wind turbines and solar panels has doubled in the last five years.

At the same time, investments in alternative sourcing, improved recycling capabilities and energy-efficient technologies must be prioritized to ensure supply chain resilience and minimize waste. Mining engineers, economists, and policy makers must act decisively, combining their expertise to balance the technical, economic and social dimensions of this challenge. Only then can the full potential of critical minerals be realized, driving progress and protecting people and the planet.

The challenge of carbon emissions from mining critical minerals

The mining of critical minerals, essential for clean and renewable technologies, faces a problem: their high energy consumption contributes significantly to carbon emissions. Despite their key role in the energy transition, mining operations often rely on fossil fuels, which contrasts with global decarbonization goals.

Mining companies have the capital to lead the shift to sustainable practices. The adoption of solutions such as green hydrogen for heavy machinery or process electrification has proven viable. However, these initiatives need to be scaled up quickly to have a real impact on reducing emissions throughout the value chain.

In addition, the development of more energy-efficient technologies is imperative. Innovations such as advanced sensors, automation, and energy recovery systems could transform mining operations, optimizing their sustainability without compromising their productivity. Mining has the potential to be part of the climate solution, but requires a strong commitment to clean and resilient technologies.

New lithium salts: the future of more efficient batteries

The development of new lithium salts represents a key opportunity to improve the capacity and lifetime of modern batteries. While battery research has mainly focused on active cathode materials or electrolyte matrices, the potential of lithium salts remains an unexplored field. This component is crucial to ensure ionic conductivity and electrochemical stability, which are essential to meet the growing demands of energy storage.

Currently, salts such as lithium hexafluorophosphate (LiPF6) and lithium bis(trifluoromethanesulfonyl)imide (LiTFSI) are used in lithium-ion batteries: they dominate the market in liquid and polymer electrolytes, respectively. However, their performance is not without limitations, especially in terms of thermal stability and long-term durability. The search for alternatives with more stable and less corrosive anions could transform battery design, enabling superior cyclability and less degradation of internal components.

Innovating in lithium salt chemistry not only impacts battery efficiency, but also sustainability. Optimized salts can reduce the need for frequent replacement, reducing the environmental impact associated with battery production and disposal. This approach, along with advances in other areas, positions the development of new lithium salts as a fundamental pillar in the evolution of energy storage technologies.

Biodiversity and social impacts of critical minerals

Mining activities can lead to water depletion, land use change and pollution, causing loss of biodiversity and negatively affecting natural resources. These environmental impacts affect the well-being of local communities and may infringe on the rights of indigenous peoples, as a significant portion of critical materials are located near indigenous lands.

In addition, the development of infrastructure for mining may lead to increased poaching, illegal logging and social unrest.

Gaps in circularity

Current efforts to recycle critical minerals are insufficient. Battery collection and recycling and renewable infrastructure face challenges due to material design and transportation distances.

Often, recyclable materials are shipped overseas, where regulations may not adequately protect those who manage the waste or the nearby communities affected by its disposal.

Proposed solutions

Investment in renewable energy

Mining companies must invest in renewable energy sources to power their operations, reducing the carbon emissions associated with mineral extraction. Technologies such as green hydrogen can play a critical role in this transition.

Responsible sourcing and regulation

Companies should adopt sourcing practices that minimize impacts on people and biodiversity. This includes respecting the rights of local people and ensuring that mining activities do not damage local ecosystems. Policies that drive responsible sourcing will help shape future business practices.

Expanding recycling efforts

Recycling is essential to reduce reliance on new mining activities. It can reduce the need for new mines by 25-40% by 2050 if scaled up effectively. Investing in domestic recycling infrastructure can improve supply chain resilience and reduce environmental impacts associated with mining.

Implementation of circular economy principles

Adopting circular economy models can significantly reduce waste and extend the life of materials to their maximum value. This approach involves designing products for recyclability and ensuring that materials are recycled back into the economy.

Product redesign to reduce mineral demand

Innovative product design is critical to reducing dependence on high-demand minerals. By focusing on energy efficiency and alternative materials, industries can mitigate the environmental and social impacts associated with mineral extraction.

Energy-efficient technologies: The design of lighter batteries reduces the need for energy-intensive minerals. For example, phosphate, lithium iron and sodium batteries are being developed to replace nickel and cobalt, which are more difficult to obtain and have more significant environmental impacts.

Mining product redesign: Companies that have leveraged existing infrastructure to develop products such as mineral sand from iron ore by-products. This innovation addresses the rising costs of mining waste, which is projected to exceed $1.6 trillion over the next three decades.

Reimagining business models

Adopting circular economy principles can transform business models, reducing waste and improving sustainability.

Companies worldwide have incorporated circular design from the outset, creating ecosystems that use materials that are often wasted. This approach not only reduces waste, but also opens up new market opportunities.

With the rise of electric vehicles, battery recycling is becoming increasingly important. International companies are partnering with automakers to recycle valuable materials, reducing costs and emissions.

Strengthening policies for sustainable practices

Sound policies are essential to reduce demand and increase supply through sustainable practices.

Energy efficiency policies: Encouraging the development of smart cities can reduce energy consumption and demand for critical minerals. Policies that promote public transportation and walkable neighborhoods can significantly reduce transportation emissions.

Incentives for recycling: Policies that incentivize recycling can improve the supply of critical minerals while reducing carbon emissions. The EU battery regulation aims to increase material recovery and reduce recycling costs through manufacturing standards.

Addressing the impact of critical minerals requires a multifaceted approach that includes innovative product design, renewed business models and strengthened policies. By focusing on these strategies, industries can ensure a more equitable and sustainable energy transition while minimizing environmental and social impacts.

Innovative battery technologies play a crucial role in reducing demand for critical minerals by introducing new designs and chemistries that use fewer critical minerals or replace them with more abundant materials. These are the key ways in which these innovations contribute to minimizing dependence on critical minerals:

Diversification of battery chemistry

Alternative chemistries: The development of battery chemistries that reduce or eliminate the need for scarce and environmentally challenging minerals is a significant advance.

For example, lithium iron phosphate (LFP) and sodium-ion batteries represent an alternative solution to traditional lithium-ion batteries that rely heavily on cobalt and nickel. These alternatives help mitigate the supply risks associated with these critical minerals.

Reduced cobalt use: Innovations in battery design have led to a shift toward lower cobalt chemistries. This transition helps limit the growth in demand for cobalt, which is often associated with ethical and environmental concerns.

Efficiency and material substitution

Reducing material use intensity: Technological advances have enabled significant reductions in material use intensity for clean energy technologies. For example, there have been 40-50% reductions in the use of silver and silicon in solar cells over the last decade, demonstrating how innovation can reduce material requirements.

Substitution with abundant materials: Innovations such as direct extraction of lithium from saltwater brines and the use of sodium-ion batteries offer avenues for substituting more abundant materials for those that are less available or more difficult to obtain sustainably.

Direct lithium extraction is a process by which lithium is separated from the other components of the brine (water in salt concentration in the salt flats) so that it can be removed more easily, without having to use large evaporation pools.

Conclusions

Promoting sustainable practices is key to the responsible supply of critical minerals: Embracing the circular economy, encouraging battery technology innovation and establishing supportive policies can ensure stable access to these essential resources while minimizing environmental and social impacts.

A holistic approach ensures sustainability in the energy transition: Reducing emissions in mining, optimizing recycling and mitigating impacts on biodiversity are key pillars to meet the growing demand for critical minerals in the transition to clean energy technologies.

References

1. htps://www.iea.org/reports/the-role-of-critical-minerals-in-clean-energy-transitions/mineral-requirements-for-clean-energy-transitions
2. https://www.resources.org/common-resources/critical-minerals-insights-from-a-recent-workshop/
3. https://www.weforum.org/stories/2024/06/why-investing-in-innovation-is-essential-to-securing-critical-minerals/
4. https://www.iea.org/reports/the-role-of-critical-minerals-in-clean-energy-transitions/executive-summary