Building Environmental Justice and Equity into the Development of Critical Mineral Industries
The global transition toward low-carbon energy not only means an increase in demand for clean electricity and renewable resources, but also an increase in demand for the critical minerals (CMs) and rare earth elements (REEs) that these technologies rely upon. Indeed, low-carbon energy technologies, such as those used for wind turbines and electric vehicle motors, require significantly more lithium, nickel, cobalt, manganese, graphite, and other CMs than fossil-based energy technologies. The growing demand for new forms of low- carbon energy will necessitate a proportional scale-up of CM and REE extraction and processing. Presently, the majority of extraction and processing activities for CMs and REEs are concentrated in very few countries, primarily in China and the Global South. CM and REE supply chain activities conducted in or controlled by these countries are commonly associated with widespread and well- documented human rights abuses and environmental degradation. As a result of concerns related to supply chain security, worker welfare, and the overall need for additional sources of CMs and REEs, governments worldwide have begun to explore policy pathways for the development of new supply chains. The development of new supply chains for CMs and REEs re s a multifold opportunity to accelerate the global deployment of low-carbon energy fleets, reduce global carbon emissions, build political resilience—and also to enhance policy objectives of environmental justice and equity in the clean energy transition. Fulfilling these policy objectives requires energy producers to navigate a maze of global supply chain policies designed to shape and accelerate the growth of new markets. In the United States, for instance, President Biden recently implemented fiscal and trade policies that incentivize both domestic and global reliance on U.S.-produced CMs and REEs, leveraging key relationships in Asia and Europe to ensure the accelerated buildout of the U.S. supply chain. The Biden Administration’s framework also emphasizes that new supply chains for CMs, REEs, and other low-carbon energy pathways must generate benefits for marginalized and disadvantaged communities, build energy equity, and contribute to the Biden Administration’s vision of environmental justice. present CM and REE supply chains include several stages, including mining, processing, transport, utilization, and disposal, each of which involves different environmental justice considerations and potential injustices. This study explores how technical innovation, paired with responsible community engagement and empowerment, can help inform the development of energy equity and environmental justice at all stages of new supply chains. The study highlights these opportunities on a broad scale. We also lend a specific focus to research at the University of Wyoming School of Energy Resources that aims to guide the development of CM and REE industries in communities with high economic dependence on coal and other fossil fuel industries, identifying pathways to grow a U.S. domestic supply chain by producing CMs from coal, coal by-products, and coal waste streams. These production pathways represent a potential new supply for CMs across the U.S. and elsewhere, thereby enhancing national security and accelerating the widespread deployment of low-carbon energy technologies, while also generating alternative applications for remaining coal reserves and aiding in a just transition for rural energy-producing communities.