As the world accelerates toward a clean energy future, the demand for critical minerals and strategic materials (strategic minerals) has surged.
These minerals — such as lithium, cobalt, nickel, copper and rare earth elements — are essential for technologies like electric vehicle batteries, wind turbines, hydrogen electrolysers and solar panels. These and other critical minerals also play a vital role in supporting the rapid expansion of digital technologies, including mobile phones, computers, and semiconductors that underpin emerging artificial intelligence (AI) systems.
However, while these minerals enable a low-carbon future and support our modern life, their extraction and processing often come with significant environmental and social challenges, including carbon emissions, land degradation and intensive water usage.
This has led to a growing focus on green minerals, referring to those extracted and processed using sustainable, low-carbon methods. The concept aims to reduce the environmental impact of mining while ensuring a reliable and ethically sourced supply of the materials needed for global decarbonisation.
UNSW's Dr Rahman Daiyan, a renewable energy and powerfuel specialist from the School of Mineral and Energy Resources Engineering (MERE), is one of the authors of a recent white paper on green minerals, leading the development of open-source tools to assess the green mineral value chain.
He says: "Strategic minerals are set to provide the backbone for global decarbonisation and the race to net zero, given their importance in the full spectrum of clean energy technologies.
"However, strategic minerals production faces significant challenges, including climate risks, decreasing ore grades, resource nationalism, underdeveloped supply chains and the need to decarbonise mining operations.
Professor Ismet Canbulat, Head of School at MERE stated: "Australia is well positioned to become a leading source of critical minerals in the coming decades. However, government action, through targeted policy support and the creation of an enabling regulatory environment, is essential to facilitate the transition toward green critical minerals. In parallel, the private sector has a vital role to play by contributing both the funding and technological innovation needed to advance sustainable mineral production."
Professor Serkan Saydam, leading the NextGenMIN Initiative within UNSW, says: "Stakeholders recognise the need for sustainable mining methods that support green minerals production and net-zero technologies. However, balancing this with minimal environmental impact is complex.
"Strategic minerals are often in low-grade deposits, low concentrations, or extreme conditions, requiring innovative solutions. Our Next Generation of Mining (NextGenMIN) initiative, backed by industry and key technology companies, aims to develop a new mining system with zero waste, zero emissions and zero (human) entry."
Here we explain exactly what green minerals are, why they are important and how mining can be made more sustainable in the future.
What Are Green Minerals?
Green minerals are those that are extracted and processed using environmentally responsible and low-carbon methods.
This approach involves utilising renewable energy sources such as solar and wind power to run mining operations, implementing low-emission processing technologies, and reducing waste and water consumption.
Although critical minerals like lithium, cobalt and rare earth elements play a crucial role in clean energy technologies, their production is often associated with significant carbon emissions and environmental degradation.
The goal of green minerals is to minimise these negative impacts, ensuring that the transition to renewable energy is truly sustainable and does not come at the cost of further environmental harm.
Why are green minerals important?
The demand for strategic minerals is expected to grow exponentially as the world moves away from fossil fuels. According to the International Energy Agency (IEA), the global demand for minerals needed in clean energy technologies will increase sixfold by 2050.
Green minerals are crucial in several ways.
First, they support global decarbonisation efforts by reducing greenhouse gas emissions associated with mining and processing. Producing these minerals using low-carbon methods ensures that clean energy technologies, such as solar panels, wind turbines and electrolysers, do not inadvertently contribute to the very emissions they are designed to mitigate.
Second, green minerals enable the clean energy transition by providing essential materials for batteries, which are key to storing renewable energy. Minerals like lithium, cobalt and nickel are vital for electric vehicle batteries, while rare earth elements are essential for wind turbines and electric motors.
Third, green minerals enhance supply chain sustainability by ensuring that materials are sourced responsibly. Governments and companies are increasingly prioritising minerals that are ethically sourced and produced with minimal environmental impact.
Regulations such as the European Union's Carbon Border Adjustment Mechanism (CBAM) are further pushing for low-carbon mineral production, making it increasingly important for countries and companies to transition toward sustainable mining practices.
Finally, green minerals help reduce the broader environmental impact of mining. Traditional mining methods lead to significant land degradation, water contamination and biodiversity loss. By implementing sustainable practices, the mining industry can minimise ecological disruption, improve land rehabilitation efforts, and reduce its overall footprint.
Challenges in scaling up green minerals production
Despite the many advantages of green minerals, transitioning to sustainable mining practices presents several challenges.
One of the primary obstacles is the high cost associated with implementing renewable energy, carbon capture technologies and advanced processing methods. Many mining companies struggle to secure funding for green projects, as the initial investment required can be substantial.
Supply chain and geopolitical risks also pose significant challenges. The mining and processing of critical minerals are heavily concentrated in a limited number of countries, while China plays a leading role in both mining and especially the processing of rare earth elements, graphite and other key minerals.
This dependence creates vulnerabilities in global supply chains, prompting countries like Australia, Canada and Chile to explore ways to diversify production and reduce reliance on geopolitical rivals.
Infrastructure and workforce limitations further complicate the transition to green mining. Most mining operations are located in remote areas with limited access to renewable energy infrastructure, making it difficult to implement sustainable practices.
Additionally, there is a shortage of skilled workers needed to develop and operate advanced mining technologies, which hinders progress toward green mineral production.
Another significant challenge is market acceptance. Green minerals may cost more to produce than those extracted using traditional methods. Without strong incentives, such as carbon credits or tax breaks, companies may be reluctant to invest in sustainable mining.
The economic viability of green minerals depends on policies that encourage the adoption of low-carbon mining practices and support market demand for sustainably sourced materials.
How can mining become more sustainable?
To overcome these challenges, governments and mining companies are adopting various strategies to make mineral extraction more sustainable.
One key approach is the integration of renewable energy into mining operations. Many companies are beginning to power their sites with solar, wind and hydroelectric energy. For example, BHP's Nickel West mine in Australia now runs on solar energy and battery storage, reducing its reliance on fossil fuels.
Another important step is the electrification of mining equipment. Traditionally, large diesel-powered trucks and excavators have been used in mining operations, but many companies are now transitioning to battery-electric or hydrogen-powered alternatives.
Anglo American, for instance, has developed the world's largest hydrogen-powered mine haul truck, significantly reducing emissions from its operations.
Carbon capture technologies are also playing a role in making mining more sustainable. Some mines are actively capturing and storing CO2 emissions to reduce their carbon footprint. A notable example is BHP's partnership with Arca Climate Technologies, which utilises mine tailings to permanently sequester CO2.
Beyond reducing emissions, efforts are being made to enhance recycling and promote a circular economy. By improving the recycling of lithium-ion batteries, the industry can reduce the demand for newly mined materials.
Technologies are being developed to extract valuable elements such as cobalt, nickel, and lithium from used batteries, creating a more sustainable supply chain.
Additionally, improving traceability and certification is crucial for building trust in green minerals. The Australian Government's Guarantee of Origin Scheme is an initiative designed to certify the sustainability of minerals, ensuring that they meet stringent environmental standards.
This certification process will allow companies to sell green minerals at a premium and encourage further investment in sustainable mining practices.
The role of Australia in the green minerals market
Australia is uniquely positioned to become a global leader in green minerals due to several key advantages.
The country possesses some of the world's largest reserves of critical minerals, including lithium and rare earth elements, which are essential for clean energy technologies.
Additionally, Australia has abundant renewable energy resources, particularly solar and wind, which can be harnessed to power mining operations in a sustainable manner.
Moreover, Australia has established strategic partnerships with key international markets, such as the United States, the European Union, and Japan, further strengthening its position as a reliable supplier of green minerals.
The Critical Minerals Strategy 2023-2030 outlines the Australian government's plans to expand domestic processing capabilities, invest in green hydrogen for mineral refining, and encourage research and innovation in sustainable mining technologies.
However, Australia faces increasing competition from other countries, including Indonesia, China, and Chile, which are rapidly expanding their critical minerals sectors. To maintain its competitive edge, Australia is likely to need to accelerate its investment in green mineral production and ensure transparency in supply chains.
Key Facts:
Materials such as lithium, cobalt, nickel and copper are vital for use in clean energy technologies such as solar panels, batteries, hydrogen electrolysers and wind turbines – but in order to support global decarbonisation efforts, those minerals need to be mined more sustainably.
About us:
The School of Minerals and Energy Resources Engineering[IC1]
UNSW School of Minerals and Energy Resources Engineering has been a leading provider of industry-relevant Mining, Petroleum, and Geoenergy & Geostorage Engineering education and research for more than 75 years. Our multidisciplinary academics produce internationally acclaimed research, working closely with our partners in the minerals and energy sectors to provide innovative solutions for the most complex problems facing the industry.
With the best facilities in resources engineering in the country, we are doing the research and producing the graduates who are addressing climate change and the energy transition. Our areas of focus include CO₂ sequestration; improving efficiencies through digital rock analysis; generating clean energy through geothermal engineering; and research into space mining.
Our school leads not only in Australia but also the world. In the latest global rankings, we are ranked 1st in Australia and 2nd in the world for Mineral and Mining Engineering, and 10th in the world for Petroleum Engineering (QS World University Rankings, 2025).
Our vision for the School is one of global leadership in teaching and research excellence in the minerals and energy sector of the economy. We will drive the national agenda across the breadth of Minerals and Energy Resources Engineering and in doing so, will enhance the quality of life for humanity in a sustainable way.
