Başak Nur GÖKÇAM
The effects of global warming are changing the current order. The world is now going through the green transformation process required to create an environmentally friendly economic model. However, for this transformation to occur, there is a great need for various critical minerals and raw materials (KMH) such as lithium, cobalt, nickel, graphite and rare earth elements. That’s because solar photovolcaic (PV) plants and wind farms and electric vehicles require more mineral use than their fossil fuel-based counterparts.
Research shows that since 2010, the average amount of minerals needed for a new unit of electricity generation capacity has increased by 50 percent as a result of the increase in the share of renewable energy. And this need is predicted to increase exponentially by the middle of the century. But the mining and processing of these minerals and raw materials is concentrated in a small number of countries located in economically and politically risky areas. Global investments in overdrafts need to be implemented as soon as possible in order to meet the high demand without experiencing supply problems. According to Bloomberg New Energy Finance, new investments of $2.1 trillion are needed by mid-century to avoid a supply chain that will slow down the energy transition.
The risks of monopolization become clear
Stating that the extraction and processing of critical minerals and raw materials required for the development and effective use of green technologies is concentrated in economically and politically risky regions, especially China, Eskişehir Osmangazi University Department of Economics Faculty Member Prof. Dr. Etem Karakaya said, “Considering the increasing demand for overdrafts within the framework of green transformation, this situation creates a serious supply risk. According to the International Energy Agency (IEA), the demand for MSMs such as nickel and cobalt is expected to double by 2040, the demand for graphite is expected to increase fourfold, and the demand for lithium is expected to increase ninefold. However, KMH mining; While it is concentrated in Latin America, Asia and Africa, China stands out as the sole dominant country in terms of processing. “Especially when the tightening restrictions after the trade wars between China and the USA are taken into consideration, the risks of these monopolizations become clearer,” he said.
China is the dominant country in overdrafts
Pointing out that there is an even more serious monopolization in the processing of mined ores, with China standing out as almost the only dominant country in these processes, Karakaya said, “74 percent of cobalt is refined in China alone. Similarly, 65 percent of lithium is refined in China.” “90 percent of rare earth elements and almost all of graphite are processed and refined in China alone,” he said.
Stating that western countries, especially the USA and the EU, which have ambitious targets for decarbonization, have failed in the supply of overdrafts, Karakaya said, “Efforts have begun to produce urgent solutions against the risks arising from China being the only dominant country in overdrafts. In order to take the right steps, we need to learn and “It is necessary to examine China’s policies,” he said.
The world’s second largest reserve is in Eskişehir
Reminding that Turkey has 694 million tons of rare earth element reserves in Eskişehir Beylikova in 2022, Prof. Dr. Etem Karakaya said, “It was stated that this is the second largest reserve in the world after the 800 million tons of reserves in China. It was stated that it will strengthen Turkey’s position in the energy sector. This reserve is at a level that can contribute greatly to the global supply risk. However, when it comes to critical minerals “International organizations that provide data do not yet include Turkey’s reserves in the global total. However, it is stated that 10 of the 17 rare earth elements known in the world are found in the Beylikova Mine Field. It is very important that these reserves are in high quantities and declared by official sources that they will be processed and refined.” he said.
Türkiye should create its own KMH list
Emphasizing that Turkey needs to carry out comprehensive strategy and planning studies in order to meet its green transformation needs and become an effective player on a global scale, Prof. Dr. Etem Karakaya said, “Turkey needs to create its own critical mineral list and inventory according to the characteristics of REEs, just like the USA and the EU do. We should expect benefit-cost analyzes of the relevant reserves and the economic value to be created if processed under different scenarios. There is a need for a large processing facility with integrated supply chains that takes into account economies of scale and cost advantages that will enable it to efficiently process and refine these critical minerals. In addition, since the processing and refining of REEs requires serious technical knowledge, it is important to provide qualified manpower and infrastructure support. Finally, their safe delivery to world markets should be ensured through international cooperation agreements. “Through such strategic plans and collaborations, Türkiye can gain an important position in the NTE supply chain,” he suggested.
Source: www.dunya.com
