Why critical metals efficiency is essential for the clean energy transition

Summary

The energy transition from fossil-fuel-based systems to renewable sources will require intensive use of certain critical metals, notably copper, nickel, cobalt and lithium. Rising demand for these metals will be largely driven by batteries and other electrification of energy use – much less so by renewable power generation itself. And this demand is projected to rise very steeply under net-zero ambitions, making it increasingly apparent it will not be met in a timely, sustainable, or socially just way.

So how can the intensity of critical metals use in the energy transition be mitigated enough to put the Paris climate agreement within reach?

While energy efficiency is rightly driving uptake of batteries and direct electrification, we need to also consider critical metals efficiency. Optimising both of these factors together will address this question and deliver a successful and orderly energy transition. And this is impossible to achieve through electrification alone: complementary technologies that offer lower metals intensity and are enabled by different metals, such as the platinum group metals, must be used.

These metals aren’t under the same pressure as other critical metals, with well-established sources of supply and established circularity. They enable existing technologies that can address hard-to-abate sectors, which will continue to account for a significant proportion of total energy consumption. These include hydrogen production, hydrogen-based fuels, fuel cell vehicles and bio-based fuels and chemicals. And in using these technologies, issues with intermittency and transportation of renewable energy supply can also be addressed, and infrastructure costs can be optimised.

This whitepaper elevates the discussion of metals efficiency so that it is fully understood and considered in the energy transition.