Critical mineral sustainable supply: Challenges and governance

Abstract

Critical minerals are essential for the functioning of modern technologies and economies and at risk of disruption to their supply chains. Global economic and technological changes have created a strong demand for these minerals to meet the net-zero and sustainable development goals. However, mineral extraction is a double-edged sword because it may negatively impact the environment and society. Non-market factors, disruption to global trade networks, and labor dynamics in countries with these minerals mean that their supply faces increasing uncertainty. This article analyzes the challenges and opportunities for the sustainable supply of critical minerals and the constraints to their long-term supply. The analysis revealed risks to the stable supply of critical minerals due to geopolitical threats, inequality in development, growing resource nationalism, and impacts of mining on ecology, the environment, and human rights. Recommendations for maintaining a long-term, stable supply of critical minerals include: addressing the needs of local communities and the environment in developing these minerals, a stronger focus on multinational mining companies in achieving SDGs goals. The international community could consider establishing a global governance mechanism for critical minerals to provide a platform for coordinating the interests of all parties and ensuring the supply needed to support Net-zero.