The global race is on to secure the raw materials necessary for the green transition. The EU Critical Raw Materials Act forecasts that demand for rare earth metals in the European Union will increase six-fold by 2030 and seven-fold by 2050.
Lithium demand is also expected to rise 12-fold by 2030, and 21-fold by 2050. As countries look to develop new sources of critical raw materials, data may provide the key to making sure local communities benefit.
Shoring up supply chains
Countries such as the US, the EU, Japan and South Korea are seeking to secure supply chains for critical minerals – including rare earth elements used in electric motors, gallium for semi-conductors and cobalt for batteries, amongst others. Meanwhile, resource-rich countries are looking to leverage their critical mineral reserves to promote growth and influence in global value chains.
Local governments find themselves at the centre of this balancing act. They must assess a growing number of requests for mineral exploration and mining projects, weighing the promise of economic development and job creation against risks to ecosystems and local communities. Striking this balance requires new approaches, informed decision-making, and tools to understand the risks and trade-offs involved. This is where geospatial data can help.
Data-driven development
In recent years, governments and central administrations in resource-rich countries have gained greater capacity to negotiate agreements that have the potential to bring greater benefits to mining communities. However, many local authorities still lack the resources, skills and tools to capitalise on these, and manage the potential risks they pose to social and environmental outcomes.
Geospatial data – information that is tied to specific geographies – can help national and subnational governments to prioritise mineral exploration projects that have higher chances to become productive mines and, at the same time, help monitor the effects of mining activities on local ecosystems, optimise logistics and supply chain management, and better understand the needs and interests of affected communities.
Such data can also offer actionable insights into critical factors like infrastructure availability, energy and water resources, workforce capacity, and environmental risks.
Mining properties classified by production stage and availability of battery materials, along the EU-Africa Strategic Corridor Maputo-Gaborone-Walvis Bay (Baranzelli et al., 2022)
The EU-Africa Strategic Corridors identified by the European Commission provide a good example of where geospatial data has helped steer investment within development corridors. This has enabled policy makers to map the linkages between current and future mines, the access to transport and energy infrastructure, natural resources, and to nurture supply-chain activities that benefit local communities. This approach situates mining activity within a broader development plan that can maximise local value, while supporting value chains that can benefit industries in both Africa and Europe.
Meanwhile, research in Finland highlights how the integration of geospatial data into land-use planning can help balance competing interests over critical raw materials and promote more sustainable resource management at local and national levels.
Harnessing geospatial data
There is a long way to go to turn a mineral discovery into critical minerals useful for the energy transition. Geospatial data can speed up this process – but capacity needs to be built. Developing the bespoke data tools that must be fashioned to meet very different local circumstances and priorities requires technical skills.
Public and private data must be combined in a secure environment to protect public interests and industry confidentiality while enabling truly cooperative resource management.
Yet thanks to research advancements, including the increasing availability of geospatial data, and progress in computing capabilities, many policy makers are now able to tap into the potential of geospatial data. And with it the prospect of transforming the way countries work together to ensure that mining supports both the energy transition and sustainable development at local and global levels.
This blog builds on the main outcomes of the opening plenary discussion of the international conference IRTC24: Raw materials in a changing world, held in Torino, Italy on February 21-23, 2024.
The OECD Geospatial Lab connects academia, government agencies, the private sector, and Statistical Offices to develop and disseminate policy-relevant analyses based on geospatial information – including mining.
For more resources on mining, see the Toolkit for Mining Regions Wellbeing and the Global Atlas of Environmental Justice.
Claudia Baranzelli leads the Geospatial Analysis team and the Geospatial Lab at the OECD’s Centre for Entrepreneurship, SMEs, Regions and Cities, where she manages projects in various fields related to territorial development. Claudia previously worked at the EC-JRC as a project leader for the development of spatial analysis tools and indicators applied to land use and urban dynamics, energy, transport, and Africa-EU Strategic Corridors. She holds an MSc in Environmental Engineering and a PhD in Urban, Regional and Environmental Planning.