The What’s What of Critical Minerals: Pathways and Challenges on the Journey to Sustainability
As discussed in the last blog on landmark new regulatory developments in the clean energy space, critical minerals are the MVP of the green transition. There is no better time to learn more about the rapidly evolving world of critical minerals than right now. There is an abundance of reports and articles about critical minerals, which can be summarized into a few keywords or topics or phrases: economics, energy independence, permitting, and ESG concerns.
Critical minerals are the backbone of the clean energy transition; a growing demand and proliferation of electric vehicles (EVs), batteries for EVs and energy storage, and other clean tech that uses these minerals requires a rapid, massive scale-up of critical mineral mining and processing. The catch is that in order to use the mined minerals to help reduce emissions, new mining must be established under strict, sustainability-focused regulations. Many world powers are turning their attention to new mining projects in order to fuel domestic demands and play their part in the clean energy transition.
Globally, there are more than enough minerals to meet demand. The challenge is scaling up in a responsible, sustainable way. China remains dominant in the critical mineral industry because they have much lower production standards, which significantly lowers costs. This has started a “race to the bottom” where producers sacrifice regulation to reach the lowest price possible for their mined materials. In order to compete, multiple powerful buyers will have to form frameworks (such as proposed by the Aspen Institute, for example) to implement higher environmental and social standards that are universally adhered to.
One such player is the United States, which is looking to expand domestic production in order to support the automobile industry and shift away from dependence on Chinese and foreign minerals. Although it cannot fully self-supply critical minerals, higher mining rates would spell out more independence in EV production and a bigger bargaining chip on the international market.
Although domestic supply is not enough to obtain self-sufficiency, the United States has deposits of cobalt, nickel, copper, lithium, and rare earth materials that could be directly sold to domestic companies to offset imports. The main obstacle blocking domestic production is the lengthy permitting process that can delay the establishment of new mines for up to seven years or more. Due to complicated requirements and a lack of cross-agency coordination, processes that take only a few years abroad are extremely onerous in the U.S.
Several factors that contribute to these lengthy timelines are environmental transgressions and public litigation – often raised by local Indigenous peoples. Mining has a poor history with limiting detrimental environmental impacts and protecting local communities; in order to expand access to critical minerals, we will need to first amend such injustices.
Mining operations consume large amounts of water and produce toxic waste that is often dumped nearby. This has severe impacts on the environment– including deforestation, soil erosion, and water pollution– which cause sharp declines in biodiversity and habitat loss around mine sites. This can also be detrimental to local communities who rely on the land around them to survive.
Indeed, many Indigenous people have been displaced around the world as low-standard mining operations disrupt food systems and release toxic chemicals that can have long-lasting health impacts. Respect for Indigenous peoples is especially crucial for the United States’ immediate plans to expand domestic mining because the majority of the country’s mineral deposits are within 35 miles of Native reservations.
In other words, while Indigenous communities would be disproportionately impacted by new mining endeavors, they also have the power to slow production through litigation in the permitting process. In the past, due to mining Indigenous peoples have been saddled with health impacts from unregulated toxic projects and suffered the loss of important tribal lands. Now, due to concerns for sacred land and environmental injustices most communities are not keen to allow mining to encroach on their territories yet again.
Both in the United States and beyond, as the world takes critical mineral mining further with sustainability goals in mind there is a definite need for increased respect towards the Indigenous communities that may be most harmed by mining projects. One approach is to ensure that impacted communities give their free, prior, and informed consent before any mining projects are established. This helps streamline permitting processes and encourages the mining industry to build better relationships with communities, fostering support for development.
While many think tanks and international agencies offer various policy proposals to address critical mineral supply issues, the actions of individuals and communities will ultimately play a crucial on-the-ground role in the establishment of new critical mineral mines. While the general public may not directly influence energy policy or economics, they can certainly impact permitting and ESG compliance for new mines in their communities.
In order to scale up mining for a smoother green transition, we will need an unprecedented level of cooperation between impacted communities, industry workers, and major actors. This multi-pronged organization is essential to streamline complicated processes and develop solutions that are beneficial for all, not just a few.
A key step in this process is changing the public perception of mining to increase support and rebrand the industry. Given the industry’s long history of low standards and harmful practices, it’s vital to implement new regulations and emphasize sustainability approaches. This will open the door for higher green tech production and better involve the general public in planning stages to protect their ways of life.
As we look to begin planning for next steps, there are a few domestic players across government, industry, and non-profits who may have the largest impact on critical mineral development strategies in the near future. It is to these individuals that we look to anticipate future change and pressure sustainable action.
