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Discussions about the global energy transition often focus on the shift from fossil fuels toward renewable energy systems. Yet beneath every solar panel, wind turbine, and battery lies another transition that receives far less attention: the transition needed along the mineral supply chain. Energy transition minerals such as copper, lithium, cobalt, nickel, and rare earth elements, are the foundation for a clean energy economy. No minerals means no electrification, no energy storage, and ultimately no path to achieving the Sustainable Development Goals.
Consider the scale and complexity of this transformation. Electric vehicles require six times more mineral inputs than conventional cars, and wind turbines need vast amounts of copper and rare earth elements for their generators. Solar energy systems rely on silicon, silver, and aluminum, and batteries depend heavily on lithium, nickel, cobalt, and graphite among others to store and stabilize renewable energy systems. As the world electrifies transport, industry, and heating, demand for certain minerals is projected to increase dramatically in the coming decades. Of course, we all want to achieve circularity as quickly as possible, but over the next several decades, we will first need a dramatic increase in new mining projects to have enough energy transition minerals in the system that can be recycled. In other words, the energy transition is also a minerals transition.
At the same time, renewable energy offers a powerful pathway toward greater global security and stability. Unlike fossil fuels, renewable energy systems rely on resources that are abundant and locally available through sunlight, wind, and water. Once installed, renewable technologies generate energy without the fuel price volatility that has long characterized global energy markets. The oil price shock linked to the conflict in Iran is a stark reminder of our fragile global energy system. Such volatility ripples through economies, drives inflation, and undermines economic stability.
Renewable energy systems, by contrast, provide countries with the opportunity to build more resilient energy systems. By reducing dependence on imported fossil fuels and stabilizing energy costs over time, they strengthen energy security while supporting climate action. This is why renewable energy deployment has become a cornerstone of strategies aimed at delivering prosperity, security, and stability, which is precisely the theme of this year’s International Vienna Energy and Climate Forum.
However, while renewable energy can reduce dependence on volatile fossil fuel markets, it also introduces new supply chain challenges. In many energy transition mineral supply chains, the concentration of production or processing exceeds 50% in just two countries.
This applies to key materials such as copper, nickel, cobalt, rare earth elements and lithium. In some cases, concentration is even more pronounced, with more than 90% of global processing taking place in a single country.
Such concentration introduces systemic risks. Supply disruptions, export restrictions, trade tensions, industrial accidents in a single location, or external shocks such as seen during the COVID-19 pandemic can reverberate across global industries. The International Energy Agency has warned that prolonged disruptions in energy transition mineral supply chains could significantly increase battery prices and slow the deployment of clean energy technologies. For countries seeking to accelerate the energy transition while strengthening economic resilience, diversification of mineral supply chains has therefore become a priority.
Yet this challenge also presents an extraordinary opportunity for developing countries that are rich in mineral resources. Many of these countries are currently exporting raw or minimally processed minerals, capturing only a small share of the value generated along global supply chains. The bulk of value addition, from refining and chemical processing to component manufacturing, takes place elsewhere.
By moving up the value chain and developing domestic processing industries, mineral-producing countries can create skilled jobs, foster industrialization, and diversify their economies beyond raw mineral exports. Local value addition can stimulate the development of new industrial clusters, strengthen technological capabilities, and generate broader economic spillovers across manufacturing and services. For countries seeking inclusive and sustainable economic development, the energy transition therefore is not only a climate imperative but also a powerful industrial opportunity.
Importantly, this shift toward more geographically diversified mineral supply chains would also benefit mineral-importing economies. Expanding processing capacity across multiple regions can reduce supply chain concentration risks, strengthen resilience against disruptions, and support more stable markets for energy transition minerals. In other words, enabling responsible value addition in mineral-producing countries can create a win–win outcome by promoting economic development while strengthening global supply security.
This is precisely the vision behind UNIDO’s Global Alliance for Responsible and Green Minerals, a multistakeholder initiative that brings together governments with the private sector, labor unions, financial institutions, academia, non-governmental organizations and affected communities (including Indigenous Peoples), to promote responsible mineral supply chains protecting human rights and adhering to good environmental and social standards.
The multi-stakeholder approach and the joint implementation of good ESG standards are particularly important for increasing public acceptance of new mining projects. Without public acceptance, there will not be enough new permits and licenses for the urgently needed new mines. Currently, this acceptance is very low worldwide, and protests by affected residents are preventing new mining projects. Only if the local population is not only protected from negative impacts but also benefits directly from mining, will there be sufficient public acceptance and licenses for the extraction of the urgently needed energy transition minerals.
By supporting responsible investments in mining, processing and manufacturing capacities in mineral-producing countries, the Alliance seeks to create opportunities for domestic value addition while helping mineral-importing countries diversify supply sources and reduce vulnerabilities.
This work builds on UNIDO’s longstanding experience helping countries strengthen technical skills, develop mineral processing capacities, establish industrial ecosystems such as industrial parks and resource corridors, and supporting artisanal and small-scale miners to participate in global supply chains. By avoiding enclave models and connecting mining operations with upstream and downstream industries, logistics infrastructure, and training institutions, mining investments can be leveraged for sustainable industrial development.
As policymakers, industry leaders, and experts gather at the International Vienna Energy and Climate Forum (IVECF) 2026, these issues will be central to discussions about powering prosperity, security, and stability in a rapidly changing world. Achieving net-zero emissions while advancing sustainable development requires more than deploying renewable energy technologies. It requires building resilient, responsible, and inclusive supply chains for the minerals that make the energy transition possible.
The coming decade will be decisive. If managed strategically, the minerals transition can unlock new pathways for industrial development, strengthen global supply chain resilience, and accelerate the shift to clean energy. If mismanaged, it risks creating new geopolitical dependencies and missed opportunities for shared prosperity. The choice lies in cooperation. Governments, companies, financial institutions, and civil society must work together to benefit both producing and consuming countries. The Global Alliance for Responsible and Green Minerals offers a platform to make this vision a reality. As discussions unfold at IVECF 2026, we invite partners from across the world to join this initiative helping ensure that the minerals powering the energy transition also power sustainable development pathways.