What’s the environmental impact of critical minerals?

Our verdict at a glance

There are enough critical minerals for a green future, but how we access them needs to change. For one, extraction must respect human rights and minimise harm to the environment. And for another, we need to manage supply and demand carefully to avoid shortages in the short-term.

What are critical minerals used for?

Critical minerals are raw materials that a society considers essential, but which are at risk of being in short supply. So, what counts as a critical mineral varies between countries and economies. But common examples include materials used in technology and manufacture. For example, phosphate rock, which is used in fertilisers, is a critical mineral for the EU because Europe has very limited supplies, whereas it’s not considered critical by the US or China.

Many critical minerals are essential for green technologies like electric vehicles and renewable energy. This means they’ll be increasingly important in tackling the climate and nature crises. Here are some green technologies and examples of the critical minerals they rely on:

• Rechargeable batteries: lithium and cobalt
• Electric vehicles: lithium, cobalt, copper, nickel and graphite
• Wind and solar power: copper and nickel
• Electrical grids: copper
• Electric arc furnaces: graphite.

Will critical minerals run out?

We’re moving towards a low-carbon future. But one common worry is that this future relies on critical minerals and that supply won’t keep up with demand, or may well run out. This is sometimes used as an argument against green technologies. It’s worth pointing out that these materials are already used in many other technologies and industries as well such as transport, electronics and medicine. But it’s a concern that requires serious consideration.

Sustainability By Numbers has done the research and (like other organisations, including the International Energy Agency) concluded we needn’t worry about long-term supply. Supply of materials like iron (for steel) and graphite is well above demand. And while demand for minerals like lithium, copper, cobalt and nickel is above or nearly at current reserves, enough materials do exist. As Sustainability by Numbers explains, the challenge is to “make more of these economically viable [to extract] or find new deposits that are easily accessible”.

This means bottlenecks in the short and medium term are more of an issue for a greener future. Discovering, exploring and extracting new mineral deposits is a slow process that can take well over a decade.

As countries work to cut their emissions, demand for critical minerals will increase. By 2030 it’s estimated that cobalt and nickel demand could double, while lithium demand could increase 6-fold. Based on projected supply, this leaves some shortfalls. These will need to be addressed by both speeding up supply and reducing demand – more on this below.

Is critical mineral mining and extraction harmful?

Another big concern about critical minerals is the environmental and human rights violations associated with extraction, especially against Indigenous communities. For example, cobalt and copper mining has been linked to terrible working conditions, child labour, forced evictions and sexual assault in the Democratic Republic of the Congo. Meanwhile, lithium mining in Chile has destroyed habitats, deprived communities and wildlife of fresh water, poisoned ecosystems and threatened species.

It’s not just about a greener future, it’s about a fairer one too. How we make change is just as important as changing in the first place. While mineral extraction is essential for a low-carbon world, this mustn’t be to the detriment of people’s lives and livelihoods or nature. Extraction must be as ethical as possible and minimise environmental damage. 

How can we extract ethically?

We need proper regulation and transparent global supply chains to ensure ethical extraction. Businesses and manufacturers need to be much more proactive and thorough in their due diligence. They must put right abuses that have occurred and use their power to influence real change. As Amnesty International argues, “companies should be using their leverage over suppliers to ensure that [minerals like cobalt are] mined safely and responsibly”.

Friends of the Earth is calling for a new UK law to hold companies accountable for any environmental harm or human rights abuses in their supply chains. Find out more about our campaign to end exploitation by big business.

What about steel?

Although steel isn’t a critical mineral, there are often concerns around its production and supply too. Heavy industries like steel and cement are important for building green infrastructure such as wind turbines. But historically, steel production has relied heavily on coal, making it a very polluting industry.

Steel doesn’t have to be produced using coal though. It can be made using green hydrogen (which is produced without using fossil fuels) or electric arc furnaces powered by renewable energy instead. The Climate Change Committee has said that the steel industry could ditch coal completely as early as 2035.

But UK steel production is falling rapidly, partly due to a global drop in steel prices. This has caused thousands of job losses, with more to come. Greener steel is the future, but it can’t come at the expense of jobs and communities. The government needs to invest in green, sustainable jobs for workers in industries that currently rely on fossil fuels. That includes the steel industry.

How can we manage the consumption of critical minerals?

Increase short- and medium-term supply

As explained above, shorter-term supply issues could lead to bottlenecks and slow down a green future. As Sustainability By Numbers argues, this means “we need to be opening new mines, scaling up refining capacity, and securing supply now”. We also need to “accelerate the standard lead times” for opening new sites.

Building resilience into supply chains is another priority. While critical minerals will always be traded internationally, China currently dominates the critical minerals market. So countries like the UK and others are working hard to shore up their own supplies.

Manage demand

There are various ways to reduce or manage our demand for critical minerals. These include:

• Making substitutions. Manufacturers are already substituting critical minerals with more easily available alternatives, for example if prices for one type of mineral rise. Various companies are moving away from cobalt, and much copper has already been replaced with aluminium. And new research means that cheaper and more abundant alternatives may become viable.
• Consuming less. Every product has a cost to the planet, no matter how ethically it’s produced. For example, electric vehicles are certainly better than petrol or diesel ones. But they still require energy and resources to make, cause air pollution and prioritise driving over public transport. Green technologies aren’t a free pass to consume without limits. Find out more about overconsumption and how we can consume less. 
• Recycling. Recycling helps extend the lifecycle of extracted minerals as much as possible. For example, car manufacturers are developing facilities to recycle electric vehicle batteries.