The growing escalation of climate change gives no choice but for the necessity of a global green shift through the use of renewable energy and sustainable practices. To facilitate this transition, countries publish a critical mineral list to guide policy makers in broadening their perspectives for decarbonisation and for supply chain resilience. Lithium joining this list has enhanced its demand and positioned it as a key enabler for transition, with a new emergent market ready for exploitation. The increasing prevalence of lithium-ion batteries exemplifies their versatile applications, from powering toys and electric transportation to stabilizing energy grids reliant on intermittent renewable sources. In response to consumer and investor preferences, both firms and governments are intensifying their efforts to ensure sustainable sourcing of lithium, consequently intensifying competition in the sector. From here, questions arise on the complex dynamics of sustainability, geopolitics, security, and ethics in the extraction and mining process.
Historically, the Global North has preferred offshore mining to avoid environmental repercussions and human rights violations. Since a substantial portion of lithium used in the Global North is imported and processed within its borders, they have become import dependent. Concerns over increasing dependence have driven shifts in US and EU policies, aiming to address the negative effects of extraction by promoting the onshoring of mining operations. The rationale behind this strategy is to retain control over extraction and to enforce their own environmental standards. This approach, however, is not without challenges, as the environmental and ethical consequences that they sought to avoid, such as water system impacts, biodiversity concerns, and Indigenous rights, persist.
In the pursuit of safeguarding supply, governments have introduced non-binding sustainability standards, revealing a continuation of green capitalism. To attract multinational lithium companies, state officials offer subsidies for various facets of the extraction process as provisions of energy, water, and infrastructure. The concept of the “security-sustainability nexus” explains this trend, as these subsidies express the imperative of establishing resilient supply chains for the sake of national security. Indeed, the global competition between hegemons incentivises desire to dominate the green sector. With the rise of China in the critical minerals sector, policies in Canada have increased spending and promoted local lithium powerhouses to shorten supply chains through government order. With access to the sixth-most lithium reserves of any country, regions such as Alberta have potential for a booming economy. This is the case as Alberta has preexisting framework and infrastructures that can be used to extract lithium through brines which are considerably less aggressive than traditional methods. However, while brine mining may have fewer negative environmental implications than foreign mining, there are still concerns about disregarding environmental consequences, as happened in the past with the oil and gas industry. The rapid increase in demand for brine mining may result in insufficient assessment of its long-term repercussions. In Quebec, companies such as Nemaska Lithium have contaminated the region’s waterways and hence harmed the local food chain. With the government collaborating with the Wapachees, there is optimism for the project to continue while also vowing to conserve the environment and indigenous traditions.
The question now becomes the efficiency and true success of switching to lithium onshoring. While projects are still in development, the global demand for lithium is exponentially growing, pressing countries for their response. This strategy could fulfill the advantages of home extraction and instill greater regulation of environmental standards. However, we cannot ignore the pertinent prioritisation of the state’s security interests. The influential effects states obtain in territorial control are instrumentalized to shape the geopolitical landscape. The issue therefore arises in finding a balance between fostering the growth of green industries and addressing the state’s interests in rapid resource extraction. It raises questions about the extent to which state policies can effectively regulate and mitigate these impacts and keep the promise for a sustainable future. For a prudent transition, we must contemplate whether promoting lithium as a renewable alternative might lead to similar ethical and environmental dilemmas we have been trying to overcome.
Edited by Elena Lee
Emma Benoudiz is in her last year at McGill university studying Economics with two minors in International Development and Political Science. Born in Venezuela and lived in the US and France her interests include a global perspective on sustainability, diplomatic relations, human rights, and political analysis on economic trends.
Très bel article, j’y ai appris de nombreuses choses.