The mining industry is one of the many leaders in the energy transition because it extracts the essential minerals and materials needed for alternative and green technologies. As the demand for green alternatives, such as renewable energy, electric vehicles, and other sustainable technologies, rises, so does the demand for the necessary materials that produce these innovations.

A new report from global technology intelligence firm ABI Research predicts that the demand for critical materials will rise from 8,253 Kilotons (kt) in 2023 to 17,711 kt in 2030, a staggering compound annual growth (CAGR) rate of 11.3%.

“The rising demand for renewable energy and electrification technologies presents a paradox,” said Alex McQueen, Sustainable Technologies Analyst at ABI Research. “Increasing demand for materials needed for these technologies will lead to an intensification of mining activities, contributing around 4-7% of global emissions. The challenge for mining companies today centers around meeting emission reduction expectations while increasing output of critical materials and minerals to meet consumer demand.”

Integrating Sustainable Technologies

Critical mineral and material mines play a major role in the energy transition
Critical mineral and material mines play a major role in the energy transition; Photo: Masmikha/Shutterstock

A solution to addressing mining’s contribution to global emissions is sustainable technologies that help decarbonize the industry.

For example, mining companies are integrating renewables and energy storage such as solar, wind, and hydroelectric power, which offer significant potential for emission reduction. The study points out that around 40% of mine emissions come from energy consumption.

Another example of how mining operations are implementing sustainable practices is digital and automation technologies. Digital technologies are driving the transition to sustainability because they can enhance productivity and safety within mining operations. IoT, Artificial Intelligence (AI), and digital twins are playing a major role in reducing emissions in mines.

Additionally, mining companies are deploying more electric equipment and vehicles to reduce carbon emissions. Caterpillar is one of the leaders in manufacturing these electric production vehicles. The company’s efforts were showcased in season 4, episode 4 of Tomorrow’s World Today on the Science Channel.

“Recognizing the critical importance of sustainable mine operations is essential for driving energy transition and sustainable growth. Technology holds significant potential in enhancing operational efficiencies and sustainability,” McQueen said. “The industry must continue to embrace innovation, collaboration, and environmental stewardship to ensure the stability and security of essential materials.”