Mining's Role In The Energy Transition

Fifth Wall Newsletter: https://mailchi.mp/fifthwall/how-do-you-disrupt-the-mining-industry 

Let's start at the beginning: Mining. The energy transition and the decarbonization of real estate will rely heavily on battery technology. And batteries require rare earth elements that must be mined.

Why it matters: The world is moving away from oil and gas, and toward metals and minerals to power homes, cars and even planes. But right now, mining is expensive and bad for the environment. So, it will be crucial to develop clean mining methods and innovative processes as the demand for these materials grows.

What does a disruption in mining look like?

• Developing a domestic supply chain is essential for the United States and the rest of the world. 90% of the lithium that’s mined globally is refined in China and then shipped to other countries.
• When mining takes place in the same regions over and over again, there’s a big risk. Geopolitical challenges could result in losing access to those materials. “We’ve seen a sovereign state use energy as a bargaining chip,” says an associate on the Climate Tech team at Fifth Wall.
• The good news is that G7 nations are working on a plan to allocate more than $7.5 billion towards the development of mines to secure energy transition minerals. Plus, in the U.S. the IRA includes economic incentives to diversify and onshore the battery supply chain.

What else? There are plenty of innovations to discover in mining that propel the industry into better practices and cleaner methods. 

• “There are new, novel ways to drill so that you can go deeper into the ground and not have to do as much excavating,” says a VP on the Climate Tech team at Fifth Wall. “And using the waste products that come out of mining. People are applying AI or satellite imagery to figure out where pockets of minerals are.”
• Plus, blockchain technology has made it possible to track and verify that minerals were responsibly mined. Worker safety tech has also advanced with wearable devices, real time monitoring, and remote controlled machinery. A focus on recycling makes it possible to offset the need for more mining and new materials, too.

Bottom line: “We’re in a very lucky period where we are going through a global rethink and transition on energy,” Mujeeb Ijaz, founder, and chief executive officer of ONE (Our Next Energy), a Fifth Wall portfolio company.

For more, watch: How mining plays a key role in the energy transition