Critical Minerals: Are EVs Bad for the Environment?

According to the International Energy Agency, an EV requires approximately six times the mineral inputs of a conventional car.

Between 2020 and 2040, minerals demand for EVs could grow 30 times, from 400 kt to 11,800 kt.

The production of these clean-energy materials involves intensive processes that contribute to greenhouse gas emissions.

However, a study by the International Council on Mining and Metals (ICMM), in collaboration with Wood Mackenzie, indicates the contribution to greenhouse gas (GHG) emissions is not as high as previously believed.

Rising global temperatures, increasing floods and record-breaking wildfires have prompted individuals and businesses to change their practices.

As demand for renewables increases daily, the mining industry has found itself central to the sustainability movement.

Yet ICMM points out that "despite the sector's importance to the energy transition, up-to-date, publicly available and industrywide data has been lacking".

The organisation has surveyed leaders and analysed emissions data to explore a thorough understanding of how much the mining and metals industry contributes to global GHG emissions.

The report explores Scope 1 and 2 GHG emissions from 1,700 facilities across 14 commodities, representing 87% of global production.

Establishing an industry baseline

"Despite our sector's importance to the energy transition, up-to-date, publicly available and industrywide data has been lacking, contributing to the circulation of misleading estimates," says Dr Emma Gagen, Director of Data and Research at ICMM.

"ICMM's Global Mining & Metals GHG Emissions Dataset provides data and data-driven insights to underpin more informed dialogue about the sector's contribution to global GHG emissions while providing the building blocks for sustainable development and the global energy transition.

"Like all large-scale datasets, this one will evolve, but establishing a transparent, industrywide baseline is a necessary starting point.

"We invite all interested stakeholders to engage with the data, provide feedback or supplementary data to help improve its coverage and collaborate with us further."

Regional and commodity breakdown

According to ICMM, the global mining and metals sector accounts for 11% of total GHG emissions.

Of this, 3% are from mining activities and 8% is from metal production.

When examining scope activity, 93% of these emissions are Scope 1 and 7% are Scope 2.

The largest contributors within the sector are steel production (55%), coal mining (23%) and aluminium production (15%).

At present, approximately 70% of the world's steel is produced by highly carbon-intensive, blast furnace-based processes.

GHG emissions from mining and metal production have increased 3%, due to both the intensity of mining and the growth in global demand for the commodities.

Non-coal mining accounts for only 0.54% of global GHG emissions.

In comparison, fugitive emissions from coal account for 2.46% of global GHG emissions.

There is an uneven distribution of GHG emissions from mining and metals, with 80% of emissions being generated in Asia, resembling the region's role as a major primary mining centre and the dominant processing hub for most global commodities.

Steel production is responsible for most GHG emissions across regions, particularly in Europe (93%).

However, Africa and the Middle East are significantly affected by emissions from aluminium production, making up 40% of the regions' GHG emissions.

Decarbonising critical minerals

As more material is needed for EVs, solar panels and wind turbines, the demand for aluminium and steel is growing.

These major contributors to the industry's GHG emissions mean the sector must act responsibly to meet demand while also reducing its carbon footprint.

For steel, global decarbonisation is moving the sector away from energy-intensive blast furnace-basic oxygen furnace crude steel production towards lower emissions solutions using electric arc furnace methods.

These solutions take a more sustainable approach, making use of more scrap volumes and reducing reliance on coal consumption.

As aluminium smelting is electricity-intensive, the decarbonisation move for this is by using more renewable electricity in the processes.