Arctic could be vital supplier of critical minerals for global green transition

The Arctic Economic Council’s latest “Arctic Mining Report 2024” argues that the Arctic region holds the key to advancing the global green transition by providing critical raw materials (CRMs). The report states that the Arctic is home to 31 out of the 34 materials identified as essential for technologies like renewable energy installations and electric vehicle batteries. With climate change pressuring industries to decarbonize, access to these resources has become a vital element in global energy strategies.

The report places focus on the Arctic’s unique potential as a CRM powerhouse, with mining projects already underway across the region. Greenland has one of the world’s largest deposits of nickel and cobalt, while Alaska hosts one of the largest zinc mines globally. Northern Sweden is also transitioning its steel industry to fossil-free production, making it a part of an emerging battery production cluster.

Mads Qvist Frederiksen, the Executive Director of the Arctic Economic Council, states in the report that the Arctic region’s mining industry stands out for its stable environmental and ethical regulations, with an established track record of indigenous participation.

“The Arctic region has stable and robust environmental and ethical regulations. There is a history of indigenous participation in the mining industry with local variations throughout the region,” he wrote. “For centuries, mining has been the backbone of Arctic communities. Today, the sector operates responsibly, with some of the highest standards globally and fewer greenhouse gas emissions.”

The report underscores the strategic importance of developing the Arctic’s CRM potential as countries aim to ensure energy security and meet climate targets. According to the International Energy Agency (IEA), the demand for critical minerals will nearly triple by 2030 and grow to over 3.5 times the current levels by 2050, with minerals like lithium seeing an eightfold increase due to their essential role in battery production.

The report lays out key recommendations for enhancing CRM mining, such as the importance of speed, skills, infrastructure and local engagement. To expedite development, governments are encouraged to provide faster regulatory approvals and invest in infrastructure such as roads, ports, power lines and rail networks.

Countries in the Arctic are taking steps to capitalize on this potential. Canada, Greenland, Norway, Sweden and Russia are all pursuing initiatives to bolster their mining sectors. Notably, Canada has worked closely with Inuit communities to ensure benefits are shared locally, while Greenland’s projects are backed by international investors like Bill Gates and Jeff Bezos through KoBold Metals.

The report also points out efforts to balance economic opportunities with environmental protection, noting that indigenous communities across the Arctic have expressed support for mining projects, provided their rights are respected and traditional knowledge is incorporated. This is particularly crucial as the Arctic faces a rapidly changing climate, with temperatures rising four times faster than the global average.

The Arctic Mining Report 2024 presents an argument for the region being poised to be at the forefront of supplying the materials necessary for a low-carbon future, making it an increasingly significant to the evolving green economy.