Critical mineral mining in the energy transition: A systematic review of environmental, social, and governance risks and opportunities

Abstract

To address climate change, countries must decarbonize and shift to renewable energy. Renewables like solar and wind are mineral intensive, meaning the world must rapidly scale up mining and processing of critical minerals such as lithium and cobalt. Such an energy transition offers economic opportunities, but poses serious environmental, social, and governance (ESG) risks. Scholars have begun to identify these risks and opportunities, yet no systematic synthesis exists. Further, non-legal academic literature on this topic frequently fails to engage a growing legal scholarship. We reviewed 69 articles focusing on critical mineral mining in the context of energy transition to describe the state of the literature and synthesize information on ESG risks and opportunities. We drew on non-legal and legal scholarship, making this the first systematic review on this topic to unite both literatures. We find that 60 % of papers focus on two minerals – lithium and/or cobalt – leaving other vitally important critical minerals unexplored. There are also glaring geographic holes – for example, the lithium papers focus on South America's Lithium Triangle, largely missing top producer Australia and other players. Collectively, the articles identify 26 ESG factors, comprising 18 risks and 8 opportunities. While this review provides a strong synthesis of existing scholarship, it reveals a clear gap between what we know and what is needed to accelerate global energy transition. There is pressing need for scholarship on overlooked critical minerals and regions, ESG opportunities in addition to risks, ownership models, and governance solutions such as impact benefit agreements.