Within the energy transition, the transition minerals.

Renewable energy is gaining popularity, leading to a rising demand for minerals crucial to clean energy technologies. These minerals, known as "transition minerals," encompass lithium, cobalt, copper, graphite, magnesium, and nickel.

Lithium, for instance, is utilized in lithium-ion batteries found in electric vehicles, laptops, and other electronic devices. Cobalt is essential for producing magnets used in wind turbines and electric motors. Copper is utilized in wiring and electrical components, while graphite is employed in lithium-ion battery electrodes. Magnesium contributes to the production of lightweight vehicle components and other goods. Nickel plays a role in stainless steel and alloy manufacturing.

According to the International Energy Agency, the demand for transition minerals could rise by six times by 2040. This increase is necessary to construct wind and solar farms, batteries, and electricity grids that will power our future energy systems.

Australia holds the title of the world's largest lithium producer, contributing to over 50% of global production. The majority of Australia's lithium comes from hard rock mines, specifically from spodumene, a mineral-rich rock. Among these mines, the Greenbushes mine in Western Australia takes the lead, producing over 370,000 tonnes of lithium in 2022. Other significant lithium mines in Australia include the Mount Marion mine and the Wodgina mine in Western Australia, as well as the Talison Lithium mine in South Australia. As the demand for lithium-ion batteries increases for electric vehicles and clean energy technologies, Australia's lithium production is expected to continue growing.

One approach to managing transition mineral demand involves designing energy systems that are more efficient. Nevertheless, despite these efforts, additional mining of transition minerals will likely be required in the future. Nearly 400 major mines will require to be opened within next 25 years.

To share some figures regarding expected growth between now and 2040:

• Lithium: Demand for lithium is expected to increase by 4200%.
• Cobalt: Demand for cobalt is expected to increase by 2300%.
• Copper: Demand for copper is expected to increase by 1600%.
• Graphite: Demand for graphite is expected to increase by 1500%.
• Magnesium: Demand for magnesium is expected to increase by 1300%.
• Nickel: Demand for nickel is expected to increase by 1200%.

The increase in demand for transition minerals is a major challenge that needs to be addressed in order to ensure a smooth transition to a clean energy future. In addition, there are a number of potential bottlenecks that could hinder the supply of transition minerals, including:

• Environmental concerns: The mining of transition minerals can have a significant environmental impact, which could lead to opposition from local communities and environmental groups. For example, the mining of cobalt can produce toxic waste, and the mining of lithium can use large amounts of water (In average, 500,000 gallons of water are needed to produce 1 ton of lithium.).
• Geographical concentration: Some transition minerals are found in relatively few countries, which could lead to supply disruptions if there are political or economic instability in these countries. For example, China is the world's largest producer of rare earth elements, and any disruption to Chinese production could have a significant impact on the global supply of these minerals.
• High cost of extraction: Some transition minerals are difficult and expensive to extract, which could make them less affordable for some consumers. For example, lithium is a relatively rare mineral that is found in brines or hard rock deposits. The extraction of lithium from brines is a relatively energy-intensive process, and the extraction of lithium from hard rock deposits can be even more expensive.
• Regulatory challenges: The mining of transition minerals is often subject to complex and challenging regulations, which can slow down the development of new projects. For example, the mining of rare earth elements is subject to strict regulations in China, which has slowed down the development of new rare earth mining projects in the country.

In addition, the mining sector is becoming increasingly geopolitically important as the demand for minerals used in clean energy technologies and other strategic industries grows. The best example is the Democratic Republic of the Congo (DRC), which is the world's largest producer of cobalt, a mineral used in lithium-ion batteries. The DRC is a conflict-ridden country, and the mining of cobalt in the DRC has been linked to human rights abuses. This has led to concerns that the DRC's cobalt could be used to fund conflict or violence.

Finally, as briefly mentionned, the mining sector is a major contributor to environmental pollution and climate change. According to the World Bank, the mining industry is responsible for 10% of global greenhouse gas emissions. It also produces significant amounts of waste, including tailings, which can pollute waterways and ecosystems.

Green mining is an approach to mining that seeks to minimize the environmental impact of mining operations. Role of renewables, circular approaches including recycling water, rehabitation of mine sites, will become a critical topic within the next decade with consequences on price and technology affordability.