A UN water thinktank has found that critical minerals like lithium, cobalt, and nickel are becoming the “oil of the 21st century,” as the rush for these precious metals deepens poverty and creates public health crises in some of the world’s most vulnerable communities.
The investigation by the United Nations University Institute for Water, Environment and Health (UNU-INWEH) concluded that the growing demand for lithium, cobalt, and nickel—used in batteries and microchips—is draining water supplies, harming agriculture, and exposing communities to toxic heavy metals.
Researchers found that in 2024, an estimated 456 billion litres of water were used to extract 240,000 tonnes of lithium. Yet, very little of the financial benefits or technological advances from the green energy transition or AI boom have reached the affected communities.
“Critical minerals are quickly becoming the oil of the 21st century,” said Kaveh Madani, director of UNU-INWEH and the 2026 Stockholm Water Prize laureate. “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?”
According to the International Energy Agency (IEA), demand for key energy minerals has grown strongly in recent years, with lithium demand rising by nearly 30% in 2024. Production of rare earths almost tripled between 2010 and 2023, driven by soaring demand for electric vehicles (EVs) and powerful computer chips.
The report found that while EVs may reduce emissions for consumers in North America and Europe, the environmental and health costs are borne by faraway communities in the mining regions of Africa and Latin America.
About 700 million tonnes of waste—enough to fill 59 million bin lorries—were generated by global rare-earth production in 2024. Africa, which holds about 30% of the world’s critical mineral reserves, is being hit hard by the environmental fallout.
In the Democratic Republic of the Congo, one of the world’s biggest cobalt producers, the authors say extraction has caused widespread contamination of rivers used for drinking, fishing, and irrigation in the south-eastern mining belt of Lualaba province.
According to the report, about 64% of people in the country 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, a UNU-INWEH researcher and the report’s lead author.
Lithium extraction often requires large amounts of water to be pumped from underground salt flats and evaporated, while chemical processing of other critical minerals can contaminate rivers and underground reservoirs.
Latin America’s lithium triangle—the high-altitude salt flats that stretch across Argentina, Bolivia, and Chile—holds some of the world’s largest reserves of the metal. These are also some of the world’s most arid ecosystems.
In Bolivia’s Uyuni region, some communities can no longer reliably grow quinoa. In Chile’s Atacama salt flats, where lithium and other mining account for as much as 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 by the intensive extraction.”José Aylwin, coordinator of the lithium and human rights in ABC project—a cross-border research initiative tracking the social and environmental impacts of lithium mining in Argentina, Bolivia, and Chile—said, “The extraction of salt-flat brines and worsening water scarcity are happening in what was already one of the driest ecosystems on Earth.”
View image in fullscreen: Lithium brine at a mine in Chile’s Atacama desert, where vast amounts of groundwater are pumped from underground and evaporated in a very arid region. Photograph: Anadolu/Getty
“As the report highlights, there is an urgent need to move from voluntary compliance to mandatory international and domestic due-diligence standards.”
UN researchers warn that the damage is expected to get worse because lithium production must increase ninefold by 2040—the IEA estimates eightfold—while cobalt and nickel extraction must double to meet climate targets.
The authors say that 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 are needed to regulate the industries.
View image in fullscreen: A resident of Obi Island in North Maluku, Indonesia, in a pool that was once a source of clean water for villagers until nickel mine waste polluted it. Photograph: AF Pramadhani/Guardian
Without a major overhaul, the green transition risks repeating the patterns of fossil fuel extraction—enriching wealthier nations while leaving poorer communities to bear the cost.
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“We thought the Industrial Revolutions were progress, and now we understand the damage they caused. So we’re launching another revolution to fix it. But once again, the burden is falling on the poorest. We’re just moving it from the Middle East to Africa and Latin America,” Madani said.
While the report paints a bleak picture of the environmental costs of the rare-earth extraction boom, some communities and governments are pushing back, said Thea Riofrancos, a political scientist at Rhode Island’s Providence College who studies extraction and the energy transition.
Protests in Argentina and Chile have challenged lithium projects in the salt flats, while Indonesia has banned exports of raw materials, including nickel ore.
“We have seen anti-mining protests becoming more frequent and more militant around the world over the past two decades,” she said. “Communities are forcing governments to pay closer attention to the costs of extraction.”
Frequently Asked Questions
Here is a list of FAQs about critical minerals being called the oil of the 21st century covering definitions problems and practical context
BeginnerLevel Questions
1 What exactly are critical minerals
They are metals and minerals essential for modern technologies like smartphones electric vehicle batteries solar panels and military equipment Examples include lithium cobalt graphite and rare earth elements
2 Why are they being called the new oil
Like oil in the 20th century these minerals are now the backbone of global economies and clean energy Countries that control their supply will have huge economic and political power just as oilrich nations did
3 How is rising demand for these minerals causing poverty
Mining often happens in poor developing countries with weak laws Local communities may be displaced lose their farmland or get low wages for dangerous work while the profits go to foreign companies or corrupt officials
4 How does mining for these minerals cause pollution
Extracting them often involves toxic chemicals massive water use and openpit mining that destroys forests This can poison rivers and soil for decades harming local people and wildlife
5 Which countries are most affected by this problem
The Democratic Republic of Congo Chile and Bolivia Indonesia and parts of China and Myanmar are some of the most impacted places
Intermediate Advanced Questions
6 Isnt mining for clean energy better than burning oil Wont it help the environment
In theory yeselectric cars and solar panels reduce carbon emissions But the mining itself has a huge environmental and human cost So its a tradeoff we solve one problem while creating others
7 What specific human rights abuses are linked to these minerals
In the Democratic Republic of Congo artisanal cobalt mines are known for using child labor and unsafe conditions In Indonesia nickel mining has led to land grabs and deaths from landslides In many places miners face lung disease from dust and heavy metal poisoning
8 What is the resource curse and does it apply here
Yes The resource curse means countries rich in valuable resources often have more poverty corruption and conflict Instead of wealth
