Critical Mineral Supply Risks Threatening Energy Transition Technologies
The global shift towards clean energy is increasingly dependent on essential technological components such as photovoltaic solar cells, wind turbines, and innovations like hydrogen, energy storage, and carbon capture.
Simultaneously, the technology industry requires materials with exceptional electrical, optical, and thermal properties, while the defence sector relies more heavily on critical minerals for high-performance magnets, sensors, and other applications.
According to GlobalData's latest Strategic Intelligence report on Critical Minerals, the supply side faces four primary risks: resource depletion, resource monopolisation, geopolitical tensions, and environmental, social, and governance concerns.
Martina Raveni, Senior Analyst at GlobalData, highlights that the surging demand driven by energy, technology, and defence sectors is raising alarms about short-term mineral exhaustion and market volatility. She emphasises that lower-grade minerals complicate extraction, especially in copper operations, and advocates for recycling to diversify and stabilise supply chains.
The uneven distribution of critical minerals—larger reserves are concentrated in regions such as South America, the Democratic Republic of Congo, and Indonesia—further intensifies supply risks. Many nations, including the United States and China, fund infrastructure and energy projects abroad to secure access.
Raveni notes that environmental factors like water scarcity and opposition from indigenous communities can delay or limit mining operations, exacerbating supply constraints.
Geopolitical tensions also play a major role, with US-China trade disputes, political unrest in Myanmar, and resource nationalism in South America disrupting flows of crucial materials. These minerals are now recognised as strategic assets essential to energy transition and national security.
Overall, addressing these risks requires international cooperation, investment in recycling technologies, and responsible resource management to ensure resilient supply chains that support sustainable technological advancement.
Failure to mitigate these challenges could slow down the deployment of critical energy and technology solutions necessary for the global decarbonisation agenda, with broad implications for economic stability and security.