Ernest Scheyder, a Reuters reporter and author of "The War Below," shares his insights on the intricate world of critical minerals like lithium and copper essential for electric vehicles and technology. He discusses the tradeoffs in mining and why the U.S. is lagging in securing these resources. Scheyder also highlights the ethical dilemmas surrounding lithium extraction and its environmental impact. The conversation delves into the complexities of supply chains and the investment challenges faced by companies in the clean energy transition.
The U.S. is falling behind in the race for precious minerals, which are crucial for the clean energy transition.
The critical mineral supply chain is complex and demands careful consideration as we confront tough choices regarding environmental impact and resource allocation.
Deep dives
Importance of Lithium and Copper in EVs and Batteries
Lithium and copper are crucial building blocks for lithium-ion batteries, which power electric vehicles (EVs) and various consumer electronic devices. These minerals are essential for the 21st-century economy, as whoever controls their production will have significant influence. Currently, Australia and Chile dominate lithium production, while China dominates processing. For copper, countries like Chile and Peru are big producers, with China being a major consumer. The U.S. has abundant supplies of both minerals, but the challenge lies in making tough choices to transition to a green energy future.
Complexity of the Critical Mineral Supply Chain
The critical mineral supply chain is complex, especially when compared to the simpler processes in the oil and gas industry. Different metals, such as lithium, copper, nickel, and cobalt, require varied extraction and processing methods. Moreover, rare earths, a group of minor metals, add further complexity due to their scarcity and specific processing requirements. The supply chain's intricacy demands careful consideration as we transition to a material-based economy and confront tough choices regarding environmental impact and resource allocation.
Balancing Environmental Protection and Resource Extraction
The book delves into the tension between protecting the environment and extracting minerals necessary for a green energy transition. It explores examples like the opposition to a lithium mining project in Nevada due to concerns for a rare flower habitat and the conflict surrounding a copper and nickel project near the Boundary Waters in Minnesota. These situations prompt discussions on the importance of considering both the beauty of natural places and their potential as sources of essential minerals. Tough choices, transparency, and open discussions are needed among investors, regulators, and the public.
Inside your cell phone, your car, even your leaf blower – there’s a collection of small, precious minerals making each one work.
Ernest Scheyder is a Reuters reporter covering the clean energy transition and author of the new book, “The War Below: Lithium, Copper, and the Global Battle to Power Our Lives.” Deidre Woollard caught up with Scheyder for a conversation about:
Tradeoffs in mining, and why the U.S. is falling behind in the race for precious minerals.