20/04/2026
Mining and the Green Energy Transition
It is no secret that the world is currently experiencing tremendous strain due in part to military confrontations surrounding the Strait of Hormuz. Global reliance on oil is further highlighted as the conflicts cause severe economic ripples, further burdening the common person. In response, material demand for renewable energy sources continues to increase. Read more with the article below:
For the past few weeks, the news cycles have been dominated by the strain experienced by many economies worldwide caused by dramatic surges in oil prices which has come as a result of the ongoing conflict in the Middle East. The crisis threatens the long-term economic growth especially those of countries that are net importers of fossil fuels. The governments of these nations have been thrust into rethinking and accelerating the pursuit of their energy transition plans [1].
While the global shift towards cleaner energy has primarily been a response to climate change, the current instability of the oil markets has provided a more immediate motivation for many countries to fast-track the deployment of renewable energy sources and electrified transportation systems. To facilitate this transition, there has been an increase in demand for critical minerals such as lithium, graphite, cobalt, nickel and rare earth elements (REEs), which the production of the diverse array of green technologies rely on [2].
To meet the requirements of the green energy transition, substantial investment is required for putting up new mines as demand for minerals listed above is expected to increase more than five times for lithium, double for graphite and nickel, and a 50-60% increase for cobalt and REEs by 2040 [3]. To achieve the net zero emission goals set forward by the Paris Agreement, overall mineral production is expected to have a six-fold increase as per the International Energy Agency [4]. This is due to the material-intensive nature of technologies essential to the green transition such as batteries, electric vehicles, solar panels, wind turbines, and many others.
As such, there is no question that mining plays a key role in achieving the global goals for energy transition. However, there are risks that must first be addressed to ensure that the process would not substitute one set of environmental and social problems for another [5]. For example, the amount of new mining that is needed to supply the transition is monumental and this scaling up risks the worsening of environmental burdens already associated with mining such as its significant resource demand for water and electricity, and its environmental footprint [6]. Without careful management, the expansion of mining could introduce more problems instead of alleviating them.
Fortunately, the mining industry, in partnership with governments and international organizations, has been working actively in the adoption and compliance to regulatory frameworks that mandate, above all, sustainability in the mining process by way of comprehensive environmental assessments, resource management, environmental protection and rehabilitation plans [7]. Furthermore, innovations in the mining and refining of the key energy minerals have the potential to significantly lower the environmental costs put on by their increased demand.
Policy initiatives have also been made to allow the mining industry to address the energy security challenges posed by the green transition, highlighting the importance of mining in the global shift to cleaner technologies. In addition, policies aimed at downstream processes such as greater efficiency, responsibility and circularity in the use of key energy minerals have been recommended, allowing for the reduction of the cumulative mineral demands [4].
Overall, the increased demand for minerals in the now accelerated pursuit of the energy transition presents a tremendous opportunity. Although it is not without its risks. If the equitable sharing of benefits from the possible proceeds of mining is not managed carefully, the expansion of mining in the future could result in unforeseen environmental and social impacts. This is especially true for developing countries which often have a wealth of transition minerals. However, with sustainability embedded in its core principles, mining can prove critical in the development of not only the global economy, but also of the future.
References:
[1] C. Hollis, โGlobal Oil Crisis Causes Asia to Accelerate Energy Transition Plans,โ Asian Insiders, Mar. 31, 2026. https://asianinsiders.com/2026/03/31/asia-energy-transition-plans-oil-crisis/
[2] T. U. De Jong, T. Sauerwein, and L. Wouters, โMINING AND THE GREEN ENERGY TRANSITION REVIEW OF INTERNATIONAL DEVELOPMENT CHALLENGES AND OPPORTUNITIES: USAID Report,โ 2021. Available:https://donorplatform.org/wp-content/uploads/2022/07/Green-Energy-Minerals-Report_FINAL.pdf
[3] IEA, โGlobal Critical Minerals Outlook 2025 โ Analysis - IEA,โ IEA, May 21, 2025. https://www.iea.org/reports/global-critical-minerals-outlook-2025
[4] UNEP-WCMC, โThe green energy transition and mining - UNEP-WCMC,โ Unep-wcmc.org, 2025. https://www.unep-wcmc.org/en/news/the-green-energy-transition-and-mining
[5] โSustainable Mining is Essential for the Energy Transition | IEEE,โ IEEE Technology for a Sustainable Climate, Sep. 29, 2025. https://sustainable-climate.ieee.org/news/sustainable-mining-is-essential-for-the-energy-transition/
[6] International Energy Forum, โHow to Make Mining More Sustainable,โ International Energy Forum, Jan. 08, 2024. https://www.ief.org/news/how-to-make-mining-more-sustainable
[7] J. Dodgson, โMiningโs green transition: Balancing production goals with stricter environmental standards,โ Global Mining Review, Mar. 17, 2026. https://www.globalminingreview.com/mining/17032026/minings-green-transition-balancing-production-goals-with-stricter-environmental-standards/
