According to UNCTAD, China accounts for two-thirds or the world’s processing and refining essential minerals.
China is the world leader in processing aluminum and lithium. It also has a leading position in rare earth metals such as cobalt. China also processes more than a third of the world’s nickel and copper.
Their importance in new technologies like electric cars and windmills is driving the global demand for minerals such as cobalt and lithium.
Analysts predict that the global demand for green energy will grow exponentially as the world moves to this new source of energy.
Shifting global production landscape
Other countries are slowly gaining ground on China in terms of essential mineral production.
Since 2010, the production of rare Earths in Australia and the United States has significantly increased.
Myanmar and Thailand, for example, have increased their mining activities in recent years, which indicates a change in global production patterns.
Governments around the globe are carefully positioning themselves in order to meet the growing demand for minerals.
The rise of new players on the market shows that global production hubs are becoming more diverse and the landscape of the vital minerals industry is changing.
Environmental challenges are posed by the increasing demand for minerals due to new technologies such as electric vehicles and renewable energies.
The mining of these minerals often involves open-pit methods that cause deforestation, habitat loss, soil erosion, pollution, and ecosystem disturbance. This contributes to land degradation and biodiversity losses.
Energy-intensive mining and processing of essential minerals results in significant air pollution and greenhouse gas emissions. Climate change and air pollution can be worsened by unsustainable refining or smelting.
The water pollution and consumption from mining and processing also depletes local water supplies, contaminates water bodies with harmful compounds and damages ecosystems.
Transport emissions and energy consumption are also a factor in the environmental impact of the extensive supply chains for these minerals.
There are efforts being made to promote sustainable mine techniques, reduce environmental impacts of mineral extraction and develop recycling and circular economies strategies to mitigate environmental repercussions from increased demand for key metals.
As new information becomes available, this post China is at the forefront of global demand for critical mineral growth may be updated.
