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MINING AND ENERGY TRANSITION:

the challenge of sustainability in the

critical minerals supply chain

Maria João Rolim, Jéssica Teijido Melo and Helena Marinho Ketzer Yacoub,
Rolim, Goulart, Cardoso Advogados

The Mineral Paradox of Energy Transition
The energy transition has become one of the most
important economic and social processes of the
21st century. Yet it harbours a central paradox: the
development of a cleaner energy mix depends
increasingly on mining, an activity historically
associated with significant environmental and
social impacts. Understanding this relationship
is essential to ensure that decarbonisation
does not reproduce, at its very foundation, the
environmental liabilities it seeks to overcome.

The expansion of renewable energy sources, the
electrification of sectors such as transport and
industry, and the growing use of energy storage
systems are substantially increasing demand
for mineral inputs. According to the Energy
Research Office (EPE in its Portuguese acronym),
Brazil’s installed electricity generation capacity is
projected to grow by 35% between 2024 and 2034,
equivalent to 84 gigawatts, of which 56 gigawatts
are expected to come from solar and wind power.
This expansion is expected to increase demand
for critical minerals by 54% over the same period . 1
This illustrates, on a national scale, a global
phenomenon: every unit renewable capacity
installed, every electric vehicle produced and every
storage system deployed requires minerals that
the fossil fuel-based system did not demand to the
same extent.

The scale of this demand is striking: a typical
electric vehicle requires around six times more and contamination, and generation of tailings.
mineral inputs than a conventional vehicle, while Its social impacts include displacement, land
an onshore wind farm demands around nine disputes, health risks and the unequal distribution
3
times more mineral resources than an equivalent of costs and benefits .
2
gas-fired powerplant . Lithium, nickel, cobalt and
graphite are essential for batteries, whilst rare Sustainability at the Basis of Energy Transition
earth elements are indispensable for magnets The importance of renewable energy to
used in wind turbines and electric motors. These decarbonisation can lead to renewable
figures demonstrate that the energy transition technologies being portrayed as inherently
– and the resulting expansion of renewable sustainable. This, however, is an oversimplification
energy, electrification and storage – is driving that overlooks their broader environmental and
mineral extraction and exacerbating the socio- social impacts. Sustainability extends beyond
environmental challenges long associated with the climate benefits delivered by a technology;
the sector. Mining has historically been linked to it also requires consideration of the risks and
deforestation, biodiversity loss, water consumption impacts throughout the value chain that

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