Not all “green” is low-impact. Electric vehicles, batteries, solar panels and wind turbines are central to decarbonisation. Yet the materials that enable these technologies lithium, cobalt, nickel, rare earth elements are often extracted in ways that cause habitat loss, water stress, pollution and social disruption. If the lifecycle impacts of these materials are ignored, climate gains can be offset by local environmental harms and human rights abuses.
Global supply chains, local consequences
Resource demand is global while extraction is local. Mines and processing facilities are frequently located in countries with limited regulatory capacity or weak labour protections. Communities near extractive sites may face contaminated water, deforestation, and displacement. Around the world, artisanal miners and vulnerable populations bear disproportionate burdens while the benefits accrue far along the value chain.
Hidden environmental costs
Mining operations consume vast quantities of water and energy, and generate tailings that can contaminate soil and waterways. Processing ores into battery-grade materials requires complex chemical treatments that, if mismanaged, create toxic byproducts. Recycling rates for many critical materials remain low, meaning virgin extraction continues to grow as demand rises.
Social and governance challenges
Weak governance and opaque supply chains enable corruption, illicit trade, and human-rights violations. Children and informal workers can be involved in hazardous mining practices. Indigenous rights are too often overlooked when extraction moves into sensitive territories. Addressing these issues requires not only technical fixes but also stronger institutions, transparency and community engagement.
Strategies for a truly sustainable transition
Policy makers, industry and civil society can take concrete steps to minimise harms while scaling green tech:
- Material efficiency: design products that use fewer critical materials and last longer.
- Circular systems: invest in recycling, refurbishing and reuse to reduce demand for virgin extraction.
- Transparent supply chains: require traceability, due diligence and public disclosure of sourcing practices.
- Community rights: enforce free, prior and informed consent for affected communities and respect Indigenous land rights.
- Environmental safeguards: adopt best-practice standards for water use, waste management and reclamation.
- Responsible sourcing incentives: build procurement policies and financial instruments that reward sustainably sourced materials.
Policy levers and private responsibility
Governments can set standards and fund research into alternative battery chemistries and lower-impact extraction techniques. At the same time, companies must integrate environmental and social criteria into procurement and product development. Multi-stakeholder platforms bringing together producers, buyers, financiers, local communities and NGOs can accelerate workable norms and reduce information asymmetries.
