As the world seeks to transition towards cleaner forms of energy in response to climate change, the pressure to extract more critical minerals such as cobalt, copper, lithium, nickel and graphite has surged. These minerals are vital to sectors like energy, digital tech, healthcare, defense, and space, yet their supply chains are complex and fragile. The projected demand growth for critical minerals will put even more pressure on the environment and society, as severe negative impacts associated with mining are not sufficiently addressed.

Companies that produce or rely on critical minerals in their value chains play a vital role in the transition to a low-carbon economy. While this transition should be accelerated, it is crucial to ensure that these companies protect the environment and respect human rights, and avoid exacerbating existing inequalities or creating new ones, thereby contributing to a truly just energy transition.

Drawing on case studies from Brazil, Peru, Mozambique and DRC this research highlights the serious environmental and social issues associated with critical mineral production and highlights the urgent need for stronger safeguards and accountability in mineral production. It targets EU-based financiers and policymakers, focusing on five strategic minerals essential for batteries, EVs, and renewables. The analysis also considers the EU’s overall regulatory approach to the entire critical and strategic raw materials (CRM and SRM) market and proposes improvements for regulatory and policy solutions moving forward.