In the battle against the climate crisis, recognizing the dangers and understanding its causes is no longer enough. The imperative now is swift and decisive action to combat climate change by decarbonizing energy systems and transforming entire industries. While renewable energy has made significant strides, there is a pressing need to bolster supply chain resilience to ensure the continued success of the energy transition.
The renewables industry has achieved remarkable progress in making wind power one of the most cost-effective forms of utility-scale electricity generation in under a decade. This achievement underscores our knowledge of the steps required to decarbonize the electricity sector and the urgency to implement them. Governments across Europe have committed to ambitious renewable energy targets, with the global share of renewables in electricity generation nearing 30%. However, the next critical step is to install more wind turbines, aligning our knowledge with concrete action.
Energy transitions are pivotal in addressing irreversible climate change. This involves not only decarbonizing energy generation but also transforming various sectors, including air travel and internet services.
Moreover, the wind power industry has made substantial progress in enhancing wind turbine recyclability and estimating the material requirements for a comprehensive energy transition in Europe.
Powering the wind industry primarily depends on a range of raw materials, from abundant ones like steel to relatively scarce rare earth metals. To achieve Europe’s energy transition by 2050 through onshore and offshore wind turbines, approximately 120 million tons of steel will be needed. This quantity may seem significant, but it represents just 6% of the world’s annual steel production.
In contrast, rare earth metals, despite their misleading name, are relatively abundant but complex to mine and refine. For a successful European energy transition by 2050, only 0.1 million tons of rare earth metals would be required. However, this constitutes 36% of global production for one year. Given the competition for these metals and their vital role in the wind industry, supply chain diversification and resilience are critical.
To address this challenge, the wind industry is actively promoting responsible mining practices worldwide to ensure a stable supply chain for rare earth metals. Recent agreements with Australian rare earth mining companies exemplify the industry’s commitment to supply chain resilience.
In recent years, various threats to supply chains have emerged, from the COVID-19 pandemic to geopolitical tensions and climate-related disasters. Diversifying supply chains to reduce reliance on single corporations is essential, but it also requires consideration of factors like geopolitical vulnerabilities and shipping routes. These factors can threaten supply chain stability, underscoring the need for robust supply chain localization concepts.
The consequences of supply chain disruptions are clear: without a functioning supply chain, manufacturing grinds to a halt, impeding the energy transition and perpetuating the climate emergency. Industry stakeholders have recognized this risk and are taking measures to mitigate it.
In addition to steel and rare earth metals, wind turbines consist of materials like copper, aluminum, fibers, and minor quantities of other substances. While the raw material requirements are relatively low, their availability and processing capacity are crucial to sustaining a successful energy transition. Developing resilient and responsible mining supply chains is imperative to secure these materials.
With the parameters, threats, and opportunities outlined, concerted efforts can ensure the successful acceleration of the global energy transition. Supply chain resilience will play a pivotal role in translating knowledge into impactful action, ultimately combating the climate crisis.
This article is part of a series authored by members of the Securing Minerals for the Energy Transition (SMET) initiative, led by the World Economic Forum. The initiative aims to identify and address the risks associated with the growing demand for critical minerals essential for the energy transition and propose strategies for their collective management.
