SMR | Mining Industry Adapts to Demand for Clean Energy Minerals

According to the report, under the IEA‘s Sustainable Development Scenario (SDS), demand for minerals such as lithium, nickel, cobalt, and rare earth elements is expected to rise significantly due to rising demand for electric vehicles and renewable energy technologies. Demand for these minerals is expected to increase by more than 30% by 2040, with lithium demand expected to triple.

Mining companies around the world are taking note of these projections and adjusting their operations to meet the increasing demand for these minerals. ABC Mining Corp is one such company that has recently invested in new technologies and equipment to extract lithium from brine deposits.

In addition to investing in new technologies, mining companies are looking into new sources of these minerals, such as deep-sea mining for rare earth elements. However, environmentalists are concerned about the potential harm to deep-sea ecosystems.

Despite these concerns, the mining industry remains confident in its ability to meet the growing demand for clean energy technologies while minimizing its environmental impact.

In 2021, the International Energy Agency (IEA) released a report titled “The Role of Critical Minerals in Clean Energy Transitions”. The report emphasizes the importance of critical minerals in an electrified, renewable-rich energy system, as well as their role in energy transitions. The IEA investigates all aspects of energy, including supply and demand for oil, gas, and coal, renewable energy technologies, and electricity.

clean energy transitions are set to change this picture.

According to the report, the world is on track to double overall mineral requirements for clean energy technologies by 2040. However, accelerating clean energy transitions are set to change this picture. In a climate-driven scenario, the combined revenues from energy transition minerals overtake those from… . In a rapidly changing energy world, the report reflects the IEA’s determination to stay ahead of the curve on all aspects of energy security.

As energy transitions accelerate, critical minerals will become a leading consumer of minerals, posing new challenges to energy security. Strong signals from policymakers about the speed of energy transitions and the growth trajectories of key clean energy technologies are critical for achieving an electrified, renewables-rich energy system.

[The IEA report emphasizes the mining industry’s critical role in the transition to a low-carbon economy. It would be impossible to achieve the global goal of limiting global temperature rise to less than 2 degrees Celsius without the minerals produced by the mining industry.]

As the demand for clean energy technologies grows, the mining industry will be called upon to play a larger role in meeting this demand. The mining industry can help ensure a sustainable and prosperous future for all by embracing new technologies, engaging stakeholders, and working collaboratively.

Expanding clean energy technologies

Minerals are critical components in many of today’s rapidly expanding clean energy technologies, ranging from wind turbines and power grids to electric vehicles. As clean energy transitions accelerate, demand for these minerals will skyrocket. The International Energy Agency (IEA) states that emissions from mineral development do not negate the climate benefits of clean energy technologies. The IEA backs up this claim with a life-cycle GHG emissions assessment of a mid-size battery electric vehicle versus an internal combustion engine vehicle. According to the report, low-carbon electricity, fuel switching, and energy efficiency will reduce GHG emissions from mineral production in the near term.

The growing momentum behind clean energy transitions draws attention to the importance of clean energy supply chains, particularly adequate mineral supply. Minerals have played an important role in the development of many of the clean energy technologies that are now widely used. However, mining and processing these minerals can have negative environmental consequences such as water pollution, soil erosion, and deforestation. These dangers are real, but they can be overcome. The response of policymakers and businesses will determine whether critical minerals remain a critical enabler for clean energy transitions.

Renewable energy technologies, such as wind turbines and solar panels, are driving up demand for certain minerals in the mining industry. According to a recent International Energy Agency (IEA) report, minerals such as copper, nickel, cobalt, and rare earth elements are used in much greater quantities in renewable energy technologies than in traditional power generation sources.

According to the report, while coal-fired power plants require relatively small amounts of minerals, renewable energy technologies require much larger quantities. A single wind turbine, for example, can contain over four tonnes of copper, whereas a typical solar panel contains around 15 different minerals, including silicon, indium, and tellurium.

The rising demand for key minerals has raised concerns about potential supply chain disruptions, as well as the environmental and social impacts of mining. To address these concerns, the mining industry is collaborating closely with governments, regulators, and environmental groups to ensure that its operations are responsible and sustainable.

The mining industry is also embracing new technologies and approaches to reduce its environmental footprint and improve efficiency. For example, new mining technologies are being developed that use less water and energy while producing less waste and emissions.

In addition to addressing the environmental and social impacts of mining, the industry is looking into new sources of these minerals, such as deep-sea mining for rare earth elements. However, environmentalists are concerned about the potential harm to deep-sea ecosystems.

Despite these challenges, the mining industry remains confident in its ability to meet the growing demand for clean energy technologies while minimizing its environmental impact.