Expanding need for essential minerals in renewable energy sources
The transition to Lithium-iron-phosphate (LFP) batteries could significantly reduce the demand for nickel and cobalt, a key component in Li-ion batteries, which is forecasted to account for 60-70% of its demand from clean energy technologies by 2040. This shift, part of a broader sustainable path, aligns with the approach's aims to ensure the continuous growth of renewable energy technologies while upholding environmental and social justice.
A recent report underscores the need for a multifaceted approach to sustainably meet the mineral requirements of the clean energy sector. The report advocates for strategic investments and regulatory frameworks to meet future mineral demands without resorting to harmful practices like deep-sea mining. Enhancing recycling rates and fostering technological innovation are identified as key strategies.
Advances in technologies such as sodium-ion batteries could further decrease reliance on critical minerals. Effective recycling could reduce primary cobalt demand by 35% by 2040, and recycled cobalt could potentially fulfill up to 62% of annual demand by 2050. Similarly, the demand for rare earth elements like neodymium and dysprosium, primarily used in wind turbines and energy storage, is expected to outstrip current production rates by 2030. However, recycling could meet this demand by 2050.
By 2040, clean energy technologies could account for a significant portion of the demand for lithium, copper, manganese, nickel, and rare earth elements. Lithium demand for energy storage could increase by 590% of 2021 production levels by 2040. Copper, important in wind and solar PV systems, is projected to have over 40% of its demand coming from clean energy applications by 2040. Manganese and nickel are also forecasted to face substantial demand increases due to their applications in various energy technologies.
The demand for these critical minerals can be reduced through successful recycling measures and technological advancements. Countries in the European Union show significant potential to reduce demand for critical minerals by implementing circular economy solutions and good regulatory frameworks. Emphasising green technology chemistries is another identified key strategy.
Transitioning to a circular economy is crucial in this context, as it not only ensures the sustainable management of mineral resources but also promotes a more efficient use of resources, thereby reducing waste and environmental impact. The approach aligns with broader sustainable development goals, making it a viable solution for a sustainable future.
