Will rising demand for renewable energy drive a big increase in demand for rare-earth metals?
Generating more renewable energy will drive a large increase in demand for certain rare-earth metals used in the production of solar panels and wind turbines (as well as in many other common products). Rare-earth metal mining and processing has acknowledged environmental effects. Reserves are concentrated in a handful of countries, most notably China.
A consulting firm's detailed look at the needs for one country, the Netherlands, suggests global demand for at least one metal, indium, could increase twelvefold by 2050. Along with increased mining, the report's authors say increased recycling or design changes could help meet the demand. Demand for other rare-earth metals could rise by between three and seven times.
Renewable energy generation will also generate more demand for other raw materials such as cobalt and lithium.