Global energy transition: The vital role of cobalt in renewable energy

Abstract

The metallic minerals (Cobalt & Lithium) are critical for the global transition to renewable energy. In this study, we investigate the impact of Cobalt (as a primary) and Lithium (as a secondary mineral) on the share of renewable electricity generation around the world. We test this hypothesis through a panel dataset of 69 countries from 2007 to 2022. The significant results indicate that, first, Cobalt positively impacts the rise of the share of renewable electricity generation. On the contrary, Lithium does not have an impact. Second, Cobalt played a significant role in increasing the share of renewable electricity generation during the global financial crisis and for China, the biggest importer of Cobalt. Third, Cobalt positively impacts renewable electricity generation in low-CO2 and high-CO2 emission countries. Lithium negatively and positively impacts renewable electricity generation for low-CO2 and high-CO2 emissions. Overall, we conclude that Cobalt plays a key role in renewable electricity generation through storage and enhancement of technologies and innovation. The results provide literary and policy implications for researchers and policy makers.