The global shift from a fossil-fuel-based economy to one powered by clean electrification is progressing despite geopolitical challenges. Demand for critical minerals such as lithium, nickel, cobalt, graphite, and rare earths has surged, driven by the rapid expansion of electric vehicles, batteries, and renewable energy technologies. Lithium demand alone grew by nearly 30 per cent in 2024, while other key minerals increased by 6–8 per cent, highlighting the central role of these resources in the energy transition.
In response, the United Nations has actively guided the mining and use of critical minerals to ensure broad, equitable benefits. In April 2024, UN Secretary-General António Guterres launched the Panel on Critical Energy Transition Minerals to promote a just and sustainable transition. The panel’s first report serves as a guide for aligning the growth of clean energy with prosperity, environmental protection, human rights, and sustainable development, particularly for resource-rich developing countries.
Building on this, the UN issued guidance in June 2025 to ensure responsible extraction and use of critical minerals. The framework is centered on three principles: prioritizing human rights through due diligence and community consent, safeguarding the environment with strong impact assessments and mine rehabilitation, and promoting justice and equity via meaningful community participation, gender equality, inclusion of Indigenous Peoples, and fair benefit-sharing.
The UN Conference on Trade and Development (UNCTAD) notes that the energy transition offers significant development opportunities for resource-rich developing countries. By shifting from raw exports to local processing and value addition, nations can substantially increase economic returns. For example, local cobalt processing in the Democratic Republic of the Congo boosted export value from $167 million to $6 billion in 2022, demonstrating the potential of industrial upgrading in critical mineral sectors.
However, the UN Environment Programme (UNEP) cautions that expanded mineral production carries serious environmental, social, economic, and geopolitical risks. Mining and processing activities can produce high greenhouse gas emissions, biodiversity loss, pollution, and human rights impacts, particularly on Indigenous Peoples. Supply shortages and tight markets can also exacerbate price volatility and geopolitical tensions. UNEP advocates for mineral governance that covers the full value chain, emphasizing international cooperation, transparent regulation, and collaborative approaches involving governments, industry, and communities to manage these risks effectively.
