This article is part of our special report The global race for raw materials.
Forming the basis of our cities, digitalisation and the European energy transition, raw materials are essential components in manufacturing the products of the future, writes Roman Stiftner. With the emergence of new demand, now is the right time for stakeholders to come together and respond to this challenge, he argues.
Roman Stiftner is Secretary General of the European Mineral Resources Confederation EUMICON.
Autonomous driving, artificial intelligence, the internet of things, the clean energy transition: the disruptive technological revolution, as well as the expansion of renewable energy use and mitigation of carbon dioxide emissions, require a whole range of new processes, products and innovative services.
All of these have a significant impact on the extractive industry and its value chains, resulting in the need for industry to respond to the new challenges. At the same time, such challenges give rise to unforeseen opportunities and potential new value chains. Raw materials form the basis for modern industrial societies, such as in Europe. Any change in the raw material base has a cascade effect on the continent’s industrial value chains.
Greater political focus on EU industry in recent years is connected with a broad range of issues arising from newly-evolving value chains and rising demand for raw materials. These include, for example, access to and costs of raw materials, product and process innovation, investment, skills, education and training, and regional and social implications.
Transformative megatrends are driving demand for raw materials
Some speak of a new age for metals and minerals. The resource intensity of our society is set to remain high, while increasing quantities of minerals in particular – some of which have been identified as critical raw materials – will be required to enable the transformation to a low-carbon economy.
It would be difficult to identify a production process that is not based on mineral raw materials, or for which tools and machinery requiring mineral raw materials are not used. Therefore, it is clear that demand for mineral raw materials will continue to grow.
At the same time, the EU’s 2050 decarbonisation goals need breakthrough innovation to bring about low-carbon industrial production, and they require European manufacturers to go beyond their existing high standards.
A key challenge is energy consumption and meeting the necessary demands on decarbonised electricity supplies. Renewable energy generation itself will require greater quantities of different raw materials than those used today, as renewables replace traditional energy commodities.
Read more on EURACTIV:
https://www.euractiv.com/section/circular-economy/opinion/raw-materials-the-foundation-of-a-prosperous-european-future/