Critical minerals: a new oil boom fuels global inequality

The race for lithium, cobalt, and nickel – dubbed ‘the oil of the 21st century’ – is not just powering the green transition; it’s systematically dismantling communities and exacerbating global poverty. A damning new report from the UN’s water thinktank lays bare the devastating human cost of this seemingly sustainable obsession.

A price too high: water, waste, and widespread suffering

Researchers found a staggering 456 billion litres of water were used to extract a mere 240,000 tonnes of lithium in 2024 – a figure that yields minimal benefit to the vulnerable communities bearing the brunt of the extraction. The report exposes a horrifying reality: technological advancements and financial gains are overwhelmingly concentrated in wealthier nations, while the affected regions – primarily in Africa and Latin America – grapple with water scarcity, toxic contamination, and a surge in public health crises.

The illusion of ‘green’

The illusion of ‘green’

Kaveh Madani, director of the UNU-INWEH, bluntly asks: “Can we really call this transition green or clean? What we’re selling as a solution is actively harming people elsewhere.” The International Energy Agency’s data confirms a dramatic surge in demand for these critical minerals – lithium demand alone jumped nearly 30% last year – driven by the explosive growth of electric vehicles and advanced computing. Yet, this progress comes at a steep price: environmental degradation and the disproportionate burden on communities far removed from the immediate benefits.

A continent under siege

A continent under siege

Africa, holding approximately 30% of the world’s reserves, is particularly vulnerable. In the Democratic Republic of Congo, cobalt extraction has rendered rivers undrinkable, leading to widespread reproductive health problems for women in the Lualaba province. Nearly 64% of the population lacks access to basic water, and 72% of those living near mines report debilitating skin and gynaecological ailments. The scale of waste generated – enough to fill 59 million bin lorries – highlights the sheer volume of this unsustainable industry.

Beyond compliance: a demand for accountability

Beyond compliance: a demand for accountability

The report underscores an urgent need for legally binding international standards, moving beyond voluntary compliance. Increased monitoring of water usage and heavy metal contamination is paramount, alongside stricter controls on toxic waste disposal. Communities are pushing back, demanding redress for the environmental and social damage caused by this so-called ‘green’ revolution. Protests in Argentina and Chile are challenging lithium projects, while Indonesia’s recent ban on raw material exports signals a potential shift in strategy.

The bitter harvest

As Abraham Nunbogu, the report’s lead author, succinctly states, “We’re moving it from the Middle East to Africa and Latin America.” The pursuit of critical minerals risks replicating the injustices of the fossil fuel era – enriching a few while leaving countless others to bear the consequences. This isn’t progress; it’s simply a geographic relocation of exploitation. The future hinges on a fundamental shift in our approach, one that prioritizes equity and sustainability over short-term profits.”