The Hidden Cost of Critical Minerals in the Green Energy Transition

The global push for clean energy and digital innovation is creating a troubling paradox: the very effort to protect the planet is imposing disproportionate environmental and human costs on the world’s most vulnerable communities. A new report by the United Nations University Institute for Water, Environment and Health (UNU-INWEH) warns that the mining of critical minerals – such as lithium, cobalt, nickel and graphite – essential for technologies like electric vehicles (EVs), renewable power, and artificial intelligence (AI), is deepening injustice and exacerbating water insecurity, toxic pollution, and health risks, particularly in the Global South.

The report, published on April 29, 2026, estimates that meeting global climate targets will require a nine-fold increase in lithium demand and a doubling of cobalt and nickel demand by 2040. By 2050, demand could be four times higher if current consumption patterns and extractive policies persist. This surge in demand is echoing the injustices of the oil extraction era, creating new “sacrifice zones” without adequate global rules, according to researchers Abraham Nunbogu and Kaveh Madani.

Water Bankruptcy and Critical Mineral Extraction

One of the most significant impacts of critical mineral extraction is its effect on water resources. Global lithium production alone required an estimated 456 billion liters of water in 2024 – equivalent to the annual domestic water needs of roughly 62 million people in sub-Saharan Africa. This represents occurring at a time when much of the world is facing “water bankruptcy,” where water usage exceeds natural replenishment, leading to irreversible ecosystem damage.

In Chile’s Salar de Atacama, a particularly arid region, mining activities account for up to 65% of total regional water use, competing with agriculture and ecosystems. Groundwater levels have dropped, salt lagoons have shrunk, and freshwater aquifers are at risk of depletion and contamination. The extraction process also generates toxic waste and wastewater containing heavy metals, acids, and radioactive residues, further compounding the problem.

The report highlights that rare earth mineral production generates up to 2,000 metric tons of waste for every metric ton of usable material. These minerals are often extracted using processes that create leaching ponds and involve the addition of chemicals, which, if improperly managed, can seep into groundwater and waterways, contaminating water sources.

Rivers near cobalt and copper mines in some regions have become so acidic that communities can no longer drink from them, leading to collapsed fish stocks and poisoned farmlands. Water insecurity is no longer a side effect of mining, but a systemic cost.

Health Crises Hidden in Supply Chains

Communities living near these extraction sites are reporting a range of health problems, including skin diseases, gastrointestinal illnesses, reproductive health issues, and chronic conditions associated with long-term exposure to heavy metals in polluted water and soil. The situation is particularly stark in the Democratic Republic of the Congo (DRC), where studies document high rates of miscarriages, congenital malformations, and infant mortality among populations exposed to cobalt and other metals.

Maternity wards in southern DRC, close to mining operations, report significantly more birth defects than those farther away. Residents near cobalt and copper mining sites have reported gynecological health problems, including infections, menstrual irregularities, miscarriages, and infertility, linked to prolonged contact with contaminated water and limited access to sanitation and healthcare.

In Chile’s Antofagasta region, cancer mortality is the highest in the country, with lung cancer rates nearly three times the national average. Physicians also report rising cases of neurological and developmental disorders, linked to early exposure to contaminated water and air. Thousands of children are estimated to be employed in artisanal cobalt mines in the DRC, exposing them to hazardous materials without protective gear.

These health risks are exacerbated by weak water, sanitation, and healthcare systems. As of 2024, only about one-third of people in the DRC had access to at least basic drinking water services.

Food Security Threatened

The water problems caused by critical mineral extraction also pose a major threat to local food systems. In Peru, zinc mining has contaminated the Cunas watershed, polluting water used for irrigation and livestock. In Bolivia’s Uyuni region, lithium mining has led to persistent water shortages, making it increasingly difficult to grow quinoa, a staple crop central to local diets and economies.

Similar patterns are evident in parts of the DRC and Zambia, where polluted rivers have contributed to declining fish stocks and livestock illnesses, harming households already struggling to feed themselves.

Protecting Mining Communities

The UNU-INWEH report calls for deliberate actions to avoid creating “sacrifice zones” and ensure a fair and sustainable energy and digital transition. The researchers suggest strengthening international governance through binding rules, enforceable supply chain due-diligence laws, and mandatory environmental and human rights standards for mining operations. The establishment of a global mineral trust to manage critical minerals as shared planetary assets is also proposed.

Companies can invest in less water-intensive mining technologies, while countries can tighten wastewater controls and expand independent environmental monitoring and reporting. Governance arrangements that give local and Indigenous communities a stronger voice, a fair share of benefits, and co-governance of resources are also crucial. Extending product lifespans, expanding recycling, and reducing reliance on newly mined minerals on the consumption side could also ease pressure on water-stressed regions.

“Critical minerals are essential to advancing sustainability,” the report concludes. “But if cleaner technologies are built in ways that result in polluted rivers, sick children and dispossessed communities, the transition will fall short of its promise.”