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The global energy change, fueled by the transition to renewable energy and electric vehicles (EVs), has dramatically raised demand for essential minerals such as cobalt and nickel. These components are needed to manufacture batteries and other sustainable energy technologies.
However, the demand for essential minerals presents a number of challenges. Between 2017 and 2022, the demand for cobalt and nickel increased by 70% and 40%, respectively. This rapid expansion has placed strain on current supply networks, raising fears about possible shortages.
Demand for Essential Minerals, a geopolitical risk
One of the most significant challenges is the spatial concentration of mining activity. For instance, the Democratic Republic of the Congo mines a significant portion of the world’s cobalt, while a few nations concentrate nickel production. This concentration exposes the supply chain to geopolitical risks and disruptions.
Cuba has an important role in the worldwide production of nickel and cobalt. The nation is the world’s ninth biggest producer of nickel and fifth greatest producer of cobalt. These metals are essential for many sectors, including the fabrication of stainless steel, rechargeable batteries, and electrical equipment.
Cuban role, in the demand for essential minerals
The Moa region in eastern Cuba is an important location for nickel and cobalt mining, which is managed by a joint venture between Cuba’s General Nickel Company and Canada’s Sherritt International. Despite its vast reserves, Cuba confronts difficulties in boosting output owing to a lack of investment and finance.
Increasing output might assist fulfill expanding global demand for essential minerals, particularly as the globe transitions to green energy and sophisticated technology. However, difficulties like as attracting adequate investment and upgrading extraction procedures must be solved in order to properly harness these resources.
Furthermore, the environmental and social consequences of extracting these minerals are substantial. Mining activities may cause deforestation, water pollution, and human rights violations, further complicating the problem.
To address these challenges, we are considering numerous techniques:
- 1. Diversifying Supply Sources: Extending mining activities to other locations may help reduce reliance on a few countries.
- 2. Recycling and Reuse: Increased recycling of batteries and other items may help minimize the need for new raw materials. For example, recycled copper and cobalt might lower primary supply needs by 30% by 2040.
- 3. Technological Innovations: Creating innovative technologies that employ fewer or different materials may also assist in reducing supply concerns.
The route to a sustainable energy future is complicated, but with concerted efforts and new solutions, we can overcome these obstacles and maintain a stable demand of key minerals.
Reources
Energy transition minerals | UNEP
