In 2017, the World Bank estimated that energy storage technology would drive a 1,000% increase in material demand for cobalt, lithium, manganese and nickel by 2050 under a 2°C climate scenario. Batteries for electric vehicles are currently driving significant demand for these minerals, but growth in large-scale energy storage technology will also play an important role in this equation.
Similarly, solar PV was estimated to drive a 300% increase in material demand for copper, nickel and zinc under that same 2°C climate scenario. Implementing truly sustainable solutions to meet our energy needs means considering human rights risks linked to mineral extraction to ensure that the energy transition is not only fast but also fair.
Human rights in the mineral supply chains of low-carbon technologies
In response to growing concerns over the impacts of the transition to a low-carbon economy, the Business & Human Rights Resource Centre (BHRRC) developed the Transition Minerals Tracker, an online platform that tracks the human rights policies and practice of companies extracting minerals key to this energy transition. The tracker currently holds data on the main companies producing copper, cobalt, lithium, manganese, nickel and zinc – minerals that feature prominently in the supply chains of energy storage technologies and solar panels.
Analysis of allegations of human rights abuse we collected from 2010 to 2019 reveals that access to water, indigenous peoples’ rights, and labour rights are the most frequent human rights issues linked to these minerals. Allegations were recorded across all minerals, reflecting the fact that reducing or eliminating the need for one specific mineral in the supply chain – for example cobalt or lithium – will not result in a sustainable supply chain. Human rights risks must instead be assessed across all mineral supply chains and all regions. Companies at each link in the supply chain must have rigorous human rights due diligence mechanisms for addressing those risks in accordance with OECD Guidelines.
Impacts of lithium mining on indigenous rights
One rising area of concern is how lithium mining is affecting indigenous people in the Lithium Triangle, an area spanning Argentina, Bolivia and Chile, which currently holds over 60% of known global lithium reserves. This region also stands out because of its unique method of extracting lithium from salt-water brines – a technique that has not yet been fully studied for its potential environmental impacts.
Allegations collected by the Business & Human Rights Resource Centre reveal that access to water has become a critical issue for the mostly indigenous communities living near these lithium mines. Depleting water resources directly impacts traditional agriculture, threatening local livelihoods and ultimately the survival of indigenous groups in the region.
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