CRITICAL MINERALSThe Critical Minerals End-Game?
To reduce greenhouse gas emissions, there’s been a dramatic uptake of renewable energy, primarily solar and wind, with a transition to lithium-ion batteries for electric vehicles and energy storage. The transition relies on increasing the extraction of critical minerals for their production.
Climate breakdown is becoming more apparent with frequent extreme weather events around the world. To reduce greenhouse gas emissions, there’s been a dramatic uptake of renewable energy, primarily solar and wind, with a transition to lithium-ion batteries for electric vehicles and energy storage. The transition relies on increasing the extraction of critical minerals for their production. Frequently described as a race for renewables with calls for ‘smarter’ and ‘more responsible‘ mining, the demand for minerals is now also being viewed through a resource nationalism lens that could disrupt renewable energy global value chains that are vulnerable to great power geoeconomic rivalry.
Global supply of critical minerals and rare earth elements is currently centered on China which in 2010 limited Japan’s access to materials due to tensions over the Senkaku Islands. Beijing might well repeat this in the future. In transitioning to renewables using critical minerals and rare earths we need to be attendant to energy security, the greening of global mineral value chains, and geopolitical concerns.
Energy security is a fundamental aim of all states. The 1970s oil crises contributed to the creation of the International Energy Agency (IEA) to help states securing oil supplies reasonably and equitably—although it proved unable to stabilize oil prices. States like Australia have rarely met the IEA’s 90-day minimum stock requirement to ensure supply in times of severe disruptions. Australia’s dependence on imported transport fuel has increased since 2019 when the government released its interim Liquid Fuel Security report. Generally, states have remained reluctant to institutionalize international cooperation on energy despite attempts through the United Nations, preferring specific international organizations for oil and gas (IEA) and nuclear energy through the International Atomic Energy Agency. The International Renewable Energy Agency, established in 2009 with German backing, was only given a mandate to promote renewable energy through policy advice, technical support, technology transfer and stimulating research. As the lead energy agency, the IEA has underpredicted the rapid uptake of renewables. There is no global forum for regulating renewables although energy remains on the G20 agenda. Further consideration of the need for international cooperation for energy security and access to renewable energy is needed.
