Cobalt is quickly becoming the defining example of the mineral conundrum at the heart of the renewable energy transition. As a key component of battery materials that power electric vehicles (EVs), cobalt is facing a sustained surge in demand as decarbonisation efforts progress. The world’s largest cobalt supplier is the Democratic Republic of Congo (DRC), where it is estimated that up to a fifth of the production is produced through artisanal miners. Cobalt mining, however, is associated with dangerous workers’ exploitation and other serious environmental and social issues. As such, questions have arisen as to whether the transition to electric vehicles and cobalt-based batteries is yet another example of environmental problem-shifting and what a renewable energy transition without cobalt could look like.

The Importance of Cobalt in the Renewable Energy Transition 

There is an urgent need to reduce carbon emissions and address global warming in order to limit existing rises in temperatures. Meeting these goals, however, requires a complete transformation – changes to the ways that energy is produced, transported and consumed. A movement away from a fossil fuel-based economy requires the generation of alternative energy sources.

The International Energy Agency’s (IEA) “Net Zero by 2050” report notes that roughly 75% of current greenhouse gas emissions are produced by the energy sector. As such, decarbonising the energy sector has dominated both technological and social innovation efforts, with electric vehicles being just one example.

At the most basic level, EV batteries are charged and discharged through the flow of lithium ions between the anode (positively charged) and the cathode (negatively charged). The cathodes contain nickel, and play a role in delivering high energy density, which allows the vehicle to travel further. Cobalt in the cathodes ensures they don’t easily overheat or catch fire and helps to extend the life of batteries. An International Monetary Fund (IMF) report notes that a typical EV battery needs 8 kilograms (18 pounds) of lithium, 35 kilogram of manganese and 6-12 kilograms of cobalt.

In the race to develop battery-power to meet net-zero commitments, however, it is important not to overlook the global implications of such a transition. New energy sources, such as those required for batteries and electric vehicles, are now exerting enormous pressures on the environment. Two questions are quickly arising: Are there sufficient resources and ability to meet these increasing demands? And, just as importantly, what are the societal costs of meeting these demands in this way?

What Is Artisanal Mining And Why Does It Matter for the Renewable Energy Transition?

Efforts to meet the demand exerted by electric vehicles have so far been focused on increasing the supply of cobalt. In 2021, the Democratic Republic of Congo (DRC) was estimated to be producing between 60 and 70% of the world’s supply of cobalt.

The majority of the cobalt that is extracted is actually a by-product of existing copper mines. However, they are currently unable to increase their output to meet existing demands and have little financial incentive to do so until copper prices also rise to complement mining activity. The other major source of cobalt outside of existing copper mines in the DRC is produced via “artisanal” mining, producing up to 15% of the global cobalt supply.