The Role of Critical Minerals in the Global Energy Transition 

The tran­si­tion away from using coal togeth­er with oil and gas fuels as sources of ener­gy con­tin­ues across the world. Ener­gy con­sumers nowa­days migrate between dif­fer­ent pow­er sources, includ­ing wind pow­er, solar pow­er and water to obtain ener­gy. Such a tran­si­tion plays a cru­cial role in low­er­ing dan­ger­ous emis­sions into the envi­ron­ment. The dai­ly require­ment of fuel ener­gy has result­ed in severe changes to envi­ron­men­tal con­di­tions.  

Chang­ing to new ener­gy sources requires cer­tain ben­e­fi­cial mate­ri­als to com­plete this tran­si­tion. The list of essen­tial mate­ri­als goes by the name crit­i­cal min­er­als. The imple­men­ta­tion of elec­tric car bat­ter­ies, solar pan­els and wind tur­bines depends on essen­tial min­er­als. Lithi­um, togeth­er with cobalt nick­el cop­per and rare earth ele­ments, func­tion most­ly as key mate­ri­als that sup­port ener­gy tran­si­tion efforts. 

Ener­gy Tran­si­tion 

Ener­gy tran­si­tion means mov­ing away from using fuels like coal, oil and gas. Replac­ing these with clean ener­gy sources like solar, wind and water is more ben­e­fi­cial.  

Every per­son rec­og­nizes that burn­ing fos­sil fuels pro­duces both dan­ger­ous car­bon diox­ide and addi­tion­al pol­lut­ing emis­sions. The atmos­phere becomes trapped with heat from solar ener­gy by these gas­es. The atmos­phere heats up, because of this glob­al warm­ing occurs. The pro­duc­tion using clean ener­gy sources results in min­i­mal pol­lu­tant emis­sions through­out the envi­ron­ment. Using clean ener­gy as an alter­na­tive to fos­sil fuels remains a bet­ter option at all times. 

Ener­gy Tran­si­tion includes: 

  • Using Clean Ener­gy: chang­ing our ener­gy sources from coal, oil, and gas to renew­able ener­gy sources such as sun and wind. This is impor­tant for our envi­ron­ment. 
  • Using Elec­tric­i­ty: using elec­tric­i­ty to pow­er cars, homes, and indus­tries in place of fuels like petrol or gas. 
  • Sav­ing Ener­gy: cre­at­ing bet­ter tech­nol­o­gy and infra­struc­ture to use ener­gy more effi­cient­ly and waste less. 
  • Pro­duc­ing Ener­gy Local­ly: it is always rec­om­mend­ed to encour­age small ener­gy sys­tems local­ly. This includes rooftop solar pan­els or local wind tur­bines that can pow­er our homes. 

The Impor­tance of Crit­i­cal Min­er­als Shows in Their Usage 

We will dis­cuss crit­i­cal min­er­als in the fol­low­ing dis­cus­sion. The essen­tial mate­ri­als required for ener­gy tran­si­tion con­sti­tute the crit­i­cal min­er­als. Clean ener­gy tech­nolo­gies require these min­er­als for pro­duc­ing diverse pow­er sys­tem ele­ments that include solar pan­els bat­ter­ies and wind tur­bines and pow­er grids. The process of mov­ing to renew­able ener­gy becomes sub­stan­tial­ly more dif­fi­cult with­out crit­i­cal min­er­als.  

The fol­low­ing list shows essen­tial crit­i­cal min­er­als along­side their appli­ca­tions in the mar­ket: 

Lithi­um: 

Lithi­um stands as the pri­ma­ry min­er­al that pow­ers elec­tric car bat­ter­ies as well as ener­gy stor­age sys­tems. Dur­ing peri­ods of low sun­light and wind speed these bat­ter­ies func­tion as stor­age units enabling use of ener­gy cap­tured from the sun or wind. 

Cobalt: 

Among crit­i­cal bat­tery mate­ri­als cobalt fea­tures as an impor­tant ingre­di­ent. Bat­ter­ies func­tion opti­mal­ly dur­ing longer dura­tions due to this acces­so­ry. 

Nick­el: 

Nick­el bat­ter­ies are most com­mon­ly used for pow­er pur­pos­es. These help elec­tric cars go far­ther on a sin­gle charge. 

Rare Earth Met­als:  

Neodymi­um and dys­pro­sium which belong to the rare earth alka­li met­als serve as com­po­nents in wind tur­bine oper­a­tions and elec­tric motor sys­tems. These mate­ri­als help increase the effi­cien­cy. 

Cop­per: 

The essen­tial com­po­nent for elec­tric cur­rent con­duc­tion is cop­per. Elec­tric­i­ty trans­port from source to des­ti­na­tion is achieved through the use of cop­per in pow­er grids solar pan­els and wind tur­bines. 

Ener­gy Tran­si­tion: Why Crit­i­cal Min­er­als Are Not Used Wide­ly? 

While crit­i­cal min­er­als are impor­tant, but they are not wide­ly used because of their avail­abil­i­ty. Here are some chal­lenges that we are fac­ing while get­ting crit­i­cal min­er­als: 

  • Lim­it­ed Sources: crit­i­cal min­er­als are not wide­ly avail­able. These min­er­als are lim­it­ed to a few coun­tries. For exam­ple: Chi­na has con­trol over the pro­duc­tion of rare earth met­als in the world. If some­thing hap­pens to the pro­duc­tion hous­es, the sup­ply of these min­er­als will be lim­it­ed to the rest of the world. 
  • Envi­ron­men­tal Harm: min­ing these min­er­als can cause a lot of dam­age to the envi­ron­ment. It can destroy habi­tats, pol­lute water sources, and cre­ate waste. If min­ing is not done prop­er­ly, it can cause some neg­a­tive effects on the envi­ron­ment. 
  • Hard to Recy­cle: cur­rent tech­nolo­gies make it hard to extract min­er­als from left­over bat­ter­ies or elec­tron­ic devices. The min­ing process demands care­ful exe­cu­tion because these min­er­als present dif­fi­cul­ties to han­dle. 

How These Prob­lems Can Be Solved: Strate­gies for Sus­tain­able Ener­gy Tran­si­tion 

To every prob­lem, there is always a solu­tion. So, we can also solve these chal­lenges by: 

  • Find More Sources: instead of depend­ing on a few coun­tries, we can explore oth­er places to mine these min­er­als.  
  • Mine Respon­si­bly: min­ing com­pa­nies should fol­low all the rules and reg­u­la­tions to pro­tect the envi­ron­ment and work­ers. They can do so by reduc­ing pol­lu­tants and con­serv­ing water. Gov­ern­ments should cre­ate strict rules to make sure min­ing is done prop­er­ly. 
  • Recy­cle Bet­ter: we need to devel­op new tech­nolo­gies to recy­cle min­er­als more effi­cient­ly from old bat­ter­ies and elec­tron­ics. This will reduce the need for new min­ing. 
  • Track Min­er­als: blockchains func­tion as emerg­ing tech­nolo­gies to mon­i­tor min­er­al sources through process­es ensur­ing prop­er and legal extrac­tion. 

The imple­men­ta­tion of every strat­e­gy enables us to uti­lize crit­i­cal min­er­als for estab­lish­ing peace­ful areas with­out pol­lu­tion. 

Con­clu­sion

The gen­er­a­tion of clean ener­gy requires these min­er­als although their extrac­tion pos­es dif­fi­cul­ties. We need to work togeth­er. Our gov­ern­ment, com­pa­nies and peo­ple should stand togeth­er to make sure all the crit­i­cal min­er­als are mined respon­si­bly and used wise­ly. In this way, we can have a clean­er envi­ron­ment. The dras­tic change in the envi­ron­ment can also be min­i­mized. 

Author

  • Marcela Nascimento

    Hi, I’m Marcela Nasci­men­to, Head of Con­tent. My mis­sion is to trans­form infor­ma­tion about finance, invest­ments, and cred­it cards into clear and strate­gic con­tent to help you make the best finan­cial deci­sions.