Critical minerals such as lithium, cobalt, and nickel are becoming the "oil of the 21st century," according to a new report by the United Nations University Institute for Water, Environment and Health (UNU-INWEH). The study finds that the growing demand for these metals, essential for batteries and microchips, is exacerbating poverty, draining water supplies, eroding agriculture, and exposing vulnerable communities to toxic heavy metals.
Environmental and Social Costs
The report reveals that an estimated 456 billion litres of water were used to extract 240,000 tonnes of lithium in 2024. Despite the green energy transition and artificial intelligence boom, affected communities see little financial benefit or technological advancement. "Critical minerals are quickly becoming the oil of the 21st century," said Kaveh Madani, director of UNU-INWEH. "What we are selling as a solution to sustainability is actively hurting people somewhere else in the world. How can we then call the transition green or clean?"
Rising Demand and Waste
According to the International Energy Agency (IEA), lithium demand rose by nearly 30% in 2024, and rare earth production almost tripled between 2010 and 2023, driven by electric vehicles (EVs) and powerful computer chips. The report notes that while EVs may reduce emissions for consumers in North America and Europe, the environmental and health costs are borne by mining regions in Africa and Latin America. In 2024, global rare-earth production generated about 700 million tonnes of waste, enough to fill 59 million bin lorries.
Impact on Africa
Africa, home to about 30% of the world's critical mineral reserves, is particularly affected. In the Democratic Republic of the Congo, one of the largest cobalt producers, extraction has caused widespread contamination of rivers used for drinking, fishing, and irrigation in the Lualaba province. The report states that 64% of the country's population lacked basic access to water in 2024, while 72% of those near mining sites reported skin diseases, and 56% of women and girls reported gynaecological problems.
"Some communities struggle on, walking more than a mile to collect water, while others are being forced to abandon their homes for urban areas, driving them further into poverty," said Abraham Nunbogu, lead author of the report.
Latin America's Lithium Triangle
Latin America's lithium triangle, spanning Argentina, Bolivia, and Chile, holds some of the world's largest lithium reserves but also some of the most arid ecosystems. In Bolivia's Uyuni region, communities can no longer reliably grow quinoa, while in Chile's Atacama salt flats, where lithium and other mining account for up to 65% of regional water use, lagoons are drying up. "These salt flats are the traditional territory of several Indigenous peoples. Their agricultural and pastoral economies have been devastated," said José Aylwin, coordinator of the lithium and human rights in ABC project.
Urgent Need for Regulation
The UN researchers warn that damage is expected to worsen as lithium production must increase ninefold by 2040, while cobalt and nickel extraction must double to meet climate targets. They call for legally binding global standards on mineral sourcing, tighter controls on toxic waste and water pollution, and independent monitoring of water use and heavy metal contamination.
"We thought the Industrial Revolutions were progress and now we understand the damage it caused, so we are launching another revolution to fix it. But once again, the burden is falling on the poorest. We are just moving it from the Middle East to Africa and Latin America," Madani said.
Resistance and Hope
Despite the bleak picture, some communities and governments are pushing back. Protests in Argentina and Chile have challenged lithium projects, while Indonesia has banned exports of raw materials like nickel ore. "We have seen anti-mining protests becoming more frequent and more militant around the world over the past two decades," said Thea Riofrancos, a political scientist at Providence College. "Communities are forcing governments to pay closer attention to the costs of extraction."
