IDEAS home Printed from https://ideas.repec.org/a/eee/jrpoli/v90y2024ics0301420724001041.html
   My bibliography  Save this article

The strategic role of lithium in the green energy transition: Towards an OPEC-style framework for green energy-mineral exporting countries (GEMEC)

Author

Listed:
  • Ghorbani, Yousef
  • Zhang, Steven E.
  • Bourdeau, Julie E.
  • Chipangamate, Nelson S.
  • Rose, Derek H.
  • Valodia, Imraan
  • Nwaila, Glen T.

Abstract

The energy sector is currently undergoing a transition towards increased utilization of green energy technologies. The green energy transition relies heavily on metals, such as aluminium, chromium, cobalt, copper, lithium, manganese, nickel, rare earth elements (REEs), silicon, tin, titanium, tungsten and zinc, among others. However, this transition occurs within the context of: (1) a geographical concentration of known mineral deposits and downstream capability; (2) a demand that vastly exceeds supply; (3) a strong drive to mitigate environmental and energy concerns; and (4) an increasing level of geopolitical conflicts. Consequently, the energy transition is not straightforward, as it intensifies material demand, market and geopolitical competition. This is especially true for lithium which is pivotal in this transformation. Concerns driven by material access, energy sustainability and national sufficiency are increasingly resulting in national and super-national geopolitical activities, such as resource nationalisation, forming strategic or trade alliances, encouraging near- and friend-shoring, promoting material circularity, and accelerating green technology research and deployment. This study examines the global impact of the green energy transition, from the perspective of the mineral value chain, including downstream products, its implications on the projected demand, and geopolitics. There are many potential outcomes in the future, depending on: (1) the pragmatic outcomes of the energy transition, which is only empirically realizable through implementation; (2) the strength of independence and global stability; and (3) the rise of regional or friendly trade blocs. In particular, this study examines a future scenario in which there is an emergence of an OPEC-style organisation for green energy minerals and metals (GEMMs), focusing on lithium as an example, because: (1) it has a clear and essential role in the green energy transition; (2) it is geographically concentrated in a manner that facilitates production coordination; and (3) it is overwhelmingly consumed by developed nations but supplied by developing nations. An organisation built around lithium could be a prototype to other GEMM markets. Consequently, we propose that it is possible to leverage existing circumstances and propose that such an organisation, here termed Green Energy-Mineral Exporting Countries, or “GEMEC”, could serve as a collaborative platform to enhance geopolitical positioning, maximise economic benefits through coordinated production and export policies, and address the environmental, social and governance challenges associated with the green energy transition.

Suggested Citation

  • Ghorbani, Yousef & Zhang, Steven E. & Bourdeau, Julie E. & Chipangamate, Nelson S. & Rose, Derek H. & Valodia, Imraan & Nwaila, Glen T., 2024. "The strategic role of lithium in the green energy transition: Towards an OPEC-style framework for green energy-mineral exporting countries (GEMEC)," Resources Policy, Elsevier, vol. 90(C).
    • Handle: RePEc:eee:jrpoli:v:90:y:2024:i:c:s0301420724001041
    DOI: 10.1016/j.resourpol.2024.104737
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301420724001041
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.resourpol.2024.104737?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Chishti, Muhammad Zubair & Sinha, Avik & Zaman, Umer & Shahzad, Umer, 2023. "Exploring the dynamic connectedness among energy transition and its drivers: Understanding the moderating role of global geopolitical risk," Energy Economics, Elsevier, vol. 119(C).
    2. Torsten Persson & Gérard Roland & Guido Tabellini, 1997. "Separation of Powers and Political Accountability," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(4), pages 1163-1202.
    3. Carl Henrik Knutsen & Andreas Kotsadam & Eivind Hammersmark Olsen & Tore Wig, 2017. "Mining and Local Corruption in Africa," American Journal of Political Science, John Wiley & Sons, vol. 61(2), pages 320-334, April.
    4. Geenen, Sara, 2014. "Dispossession, displacement and resistance: Artisanal miners in a gold concession in South-Kivu, Democratic Republic of Congo," Resources Policy, Elsevier, vol. 40(C), pages 90-99.
    5. Lessmann, Christian & Steinkraus, Arne, 2019. "The geography of natural resources, ethnic inequality and civil conflicts," European Journal of Political Economy, Elsevier, vol. 59(C), pages 33-51.
    6. Kleijn, René & van der Voet, Ester & Kramer, Gert Jan & van Oers, Lauran & van der Giesen, Coen, 2011. "Metal requirements of low-carbon power generation," Energy, Elsevier, vol. 36(9), pages 5640-5648.
    7. Jamola Khusanjanova, 2011. "OPEC¡¯s Benefit for the Member Countries," Research in World Economy, Research in World Economy, Sciedu Press, vol. 2(1), pages 14-23, April.
    8. Morelli, Massimo & Rohner, Dominic, 2015. "Resource concentration and civil wars," Journal of Development Economics, Elsevier, vol. 117(C), pages 32-47.
    9. Arumugam Manthiram, 2020. "A reflection on lithium-ion battery cathode chemistry," Nature Communications, Nature, vol. 11(1), pages 1-9, December.
    10. Hilson, Gavin & Sauerwein, Titus & Owen, John, 2020. "Large and artisanal scale mine development: The case for autonomous co-existence," World Development, Elsevier, vol. 130(C).
    11. Gkillas, Konstantinos & Gupta, Rangan & Pierdzioch, Christian & Yoon, Seong-Min, 2021. "OPEC news and jumps in the oil market," Energy Economics, Elsevier, vol. 96(C).
    12. Nwaila, Glen T. & Frimmel, Hartwig E. & Zhang, Steven E. & Bourdeau, Julie E. & Tolmay, Leon C.K. & Durrheim, Raymond J. & Ghorbani, Yousef, 2022. "The minerals industry in the era of digital transition: An energy-efficient and environmentally conscious approach," Resources Policy, Elsevier, vol. 78(C).
    13. Sattich, Thomas & Freeman, Duncan & Scholten, Daniel & Yan, Shaohua, 2021. "Renewable energy in EU-China relations: Policy interdependence and its geopolitical implications," Energy Policy, Elsevier, vol. 156(C).
    14. Zhang, Steven E. & Bourdeau, Julie E. & Nwaila, Glen T. & Ghorbani, Yousef, 2023. "Emerging criticality: Unraveling shifting dynamics of the EU's critical raw materials and their implications on Canada and South Africa," Resources Policy, Elsevier, vol. 86(PB).
    15. Anna Cabigiosu, 2022. "Sustainable development and incumbents' open innovation strategies for a greener competence‐destroying technology: The case of electric vehicles," Business Strategy and the Environment, Wiley Blackwell, vol. 31(5), pages 2315-2336, July.
    16. E. Petavratzi & D. Sanchez-Lopez & A. Hughes & J. Stacey & J. Ford & A. Butcher, 2022. "The impacts of environmental, social and governance (ESG) issues in achieving sustainable lithium supply in the Lithium Triangle," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 35(3), pages 673-699, December.
    17. Rachidi, Ntebatše R. & Nwaila, Glen T. & Zhang, Steven E. & Bourdeau, Julie E. & Ghorbani, Yousef, 2021. "Assessing cobalt supply sustainability through production forecasting and implications for green energy policies," Resources Policy, Elsevier, vol. 74(C).
    18. Eric Engle, 2008. "The Stock Market as a Game: An Agent Based Approach to Trading in Stocks," Working Papers hal-00699229, HAL.
    19. Tran, Bao-Linh & Chen, Chi-Chung & Tseng, Wei-Chun, 2022. "Causality between energy consumption and economic growth in the presence of GDP threshold effect: Evidence from OECD countries," Energy, Elsevier, vol. 251(C).
    20. Kai Wang & Zhenqi Gu & Zhiwei Xi & Lv Hu & Cheng Ma, 2023. "Li3TiCl6 as ionic conductive and compressible positive electrode active material for all-solid-state lithium-based batteries," Nature Communications, Nature, vol. 14(1), pages 1-10, December.
    21. James T. Frith & Matthew J. Lacey & Ulderico Ulissi, 2023. "A non-academic perspective on the future of lithium-based batteries," Nature Communications, Nature, vol. 14(1), pages 1-17, December.
    22. Deberdt, Raphael, 2022. "Land access rights in minerals’ responsible sourcing. The case of cobalt in the Democratic Republic of the Congo," Resources Policy, Elsevier, vol. 75(C).
    23. Overland, Indra & Juraev, Javlon & Vakulchuk, Roman, 2022. "Are renewable energy sources more evenly distributed than fossil fuels?," Renewable Energy, Elsevier, vol. 200(C), pages 379-386.
    24. Cai, Yifei & Zhang, Dongna & Chang, Tsangyao & Lee, Chien-Chiang, 2022. "Macroeconomic outcomes of OPEC and non-OPEC oil supply shocks in the euro area," Energy Economics, Elsevier, vol. 109(C).
    25. Liang, Yanan & Kleijn, René & Tukker, Arnold & van der Voet, Ester, 2022. "Material requirements for low-carbon energy technologies: A quantitative review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 161(C).
    26. Warr, B.S. & Ayres, R.U., 2010. "Evidence of causality between the quantity and quality of energy consumption and economic growth," Energy, Elsevier, vol. 35(4), pages 1688-1693.
    27. Abbasi, Kashif Raza & Shahbaz, Muhammad & Zhang, Jinjun & Irfan, Muhammad & Alvarado, Rafael, 2022. "Analyze the environmental sustainability factors of China: The role of fossil fuel energy and renewable energy," Renewable Energy, Elsevier, vol. 187(C), pages 390-402.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. De Jong, Terah U. & Sauerwein, Titus, 2021. "State-owned minerals, village-owned land: How a shared property rights framework helped formalize artisanal diamond miners in Côte d’Ivoire between 1986 and 2016," Resources Policy, Elsevier, vol. 70(C).
    2. Su, Yun Hsuan & Rizvi, Syed Kumail Abbas & Umar, Muhammad & Chang, Hsuling, 2023. "Unveiling the relationship between oil and green bonds: Spillover dynamics and implications," Energy Economics, Elsevier, vol. 127(PA).
    3. Nicolas Berman & Mathieu Couttenier & Victoire Girard, 2023. "Mineral Resources and the Salience of Ethnic Identities," The Economic Journal, Royal Economic Society, vol. 133(653), pages 1705-1737.
    4. Bürgi Bonanomi, Elisabeth & Elsig, Manfred & Espa, Ilaria, 2015. "The Commodity Sector and Related Governance Challenges from a Sustainable Development Perspective: The Example of Switzerland Current Research Gaps," Papers 865, World Trade Institute.
    5. Aramendia, Emmanuel & Brockway, Paul E. & Taylor, Peter G. & Norman, Jonathan B., 2024. "Exploring the effects of mineral depletion on renewable energy technologies net energy returns," Energy, Elsevier, vol. 290(C).
    6. Massimo Morelli & Dominic Rohner, 2023. "Natural resources and conflict: The crucial role of power mismatch and geographic asymmetries," Working Papers 698, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
    7. Abbas, Qamar & Hongxing, Yao & Shahbaz, Muhammad & Ramzan, Muhammad & Fatima, Sumbal, 2024. "Metallic minerals production and environmental sustainability in China: Insights using ARDL bounds testing and wavelet coherence approaches," Resources Policy, Elsevier, vol. 92(C).
    8. Zhang, Steven E. & Bourdeau, Julie E. & Nwaila, Glen T. & Ghorbani, Yousef, 2023. "Emerging criticality: Unraveling shifting dynamics of the EU's critical raw materials and their implications on Canada and South Africa," Resources Policy, Elsevier, vol. 86(PB).
    9. Wegenast, Tim & Beck, Jule, 2020. "Mining, rural livelihoods and food security: A disaggregated analysis of sub-Saharan Africa," World Development, Elsevier, vol. 130(C).
    10. Zhao, Congyu & Dong, Kangyin & Wang, Kun & Dong, Xiucheng, 2023. "Can low-carbon energy technology lead to energy resource carrying capacity improvement? The case of China," Energy Economics, Elsevier, vol. 127(PA).
    11. Victoire Girard & Nicolas Berman & Mathieu Couttenier, 2020. "Natural resources and the salience of ethnic identities," NOVAFRICA Working Paper Series wp2007, Universidade Nova de Lisboa, Nova School of Business and Economics, NOVAFRICA.
    12. Nemera Gebeyehu Mamo, 2018. "Essays on natural resources in Africa: local economic development, multi-ethnic coalitions and armed conflict," Economics PhD Theses 0518, Department of Economics, University of Sussex Business School.
    13. Persson, Torsten & Tabellini, Guido, 2002. "Political economics and public finance," Handbook of Public Economics, in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 3, chapter 24, pages 1549-1659, Elsevier.
    14. Santos, João & Domingos, Tiago & Sousa, Tânia & St. Aubyn, Miguel, 2016. "Does a small cost share reflect a negligible role for energy in economic production? Testing for aggregate production functions including capital, labor, and useful exergy through a cointegration-base," MPRA Paper 70850, University Library of Munich, Germany.
    15. Villanthenkodath, Muhammed Ashiq & Mahalik, Mantu Kumar, 2021. "Does economic growth respond to electricity consumption asymmetrically in Bangladesh? The implication for environmental sustainability," Energy, Elsevier, vol. 233(C).
    16. Daniel Diermeier & Hulya Eraslan & Antonio Merlo, 2003. "The Effects of Constitutions on Coalition Governments in Parliamentary Democracies," PIER Working Paper Archive 03-037, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
    17. Ren, Kaipeng & Tang, Xu & Wang, Peng & Willerström, Jakob & Höök, Mikael, 2021. "Bridging energy and metal sustainability: Insights from China’s wind power development up to 2050," Energy, Elsevier, vol. 227(C).
    18. Zheng, Li & Abbasi, Kashif Raza & Salem, Sultan & Irfan, Muhammad & Alvarado, Rafael & Lv, Kangjuan, 2022. "How technological innovation and institutional quality affect sectoral energy consumption in Pakistan? Fresh policy insights from novel econometric approach," Technological Forecasting and Social Change, Elsevier, vol. 183(C).
    19. Torsten Persson & Guido Tabellini, "undated". "Political Institutions and Policy Outcomes: What are the Stylized Facts?," Working Papers 189, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
    20. Shirzad, Mohammad & Kazemi Shariat Panahi, Hamed & Dashti, Behrouz B. & Rajaeifar, Mohammad Ali & Aghbashlo, Mortaza & Tabatabaei, Meisam, 2019. "A comprehensive review on electricity generation and GHG emission reduction potentials through anaerobic digestion of agricultural and livestock/slaughterhouse wastes in Iran," Renewable and Sustainable Energy Reviews, Elsevier, vol. 111(C), pages 571-594.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jrpoli:v:90:y:2024:i:c:s0301420724001041. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/30467 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.