The new report, Critical Minerals for a Sustainable Transition (pdf, 6 mb), authored by Professor Susan Park, with Mr Johnny Ho and Dr Oliver Summerfield-Ryan, examines how the growing demand for critical minerals can support, rather than undermine, a fair and sustainable energy transition.
Supported by the Sydney Environment Institute, the report builds on discussions from the Critical Minerals for a Sustainable Transition Symposium, which brought together researchers, policymakers and practitioners from across Australia. It explores how critical minerals are reshaping the global energy landscape and what is needed to ensure that the transition to renewables also advances social and environmental justice.
As the shift from fossil fuels to renewable energy accelerates, critical minerals such as lithium, cobalt, nickel and rare earth elements have become essential components of clean energy technologies. Yet their extraction and processing raise significant environmental, social and governance challenges. The report highlights the need to balance national energy and security goals with the protection of ecosystems, cultural heritage and community well-being.
Drawing on two days of multidisciplinary dialogue, the report identifies four key themes that define the current landscape of critical minerals in Australia and beyond.
Competing needs across stakeholders emerged as a central concern. Governments, industry, investors, communities and First Nations peoples all hold different priorities, from energy security and market stability to cultural heritage protection and environmental regeneration. Participants emphasised that the transition to renewable energy must go beyond technical efficiency to include meaningful participation, equitable benefit sharing and recognition of ecological limits.
A second theme, capacity, underscored the uneven resources and expertise available to different actors in the sector. Smaller mining companies and First Nations groups often face barriers to meeting complex Environmental, Social and Governance (ESG) standards or engaging in negotiations on equal terms. The report highlights the need for greater investment in community capacity and workforce development to ensure that all stakeholders can participate effectively in shaping the energy transition.
The third theme, structural change, reflects growing recognition that current laws and regulatory frameworks are not keeping pace with the realities of global supply chains and environmental risk. Participants noted that outdated approval systems and fragmented governance can inadvertently fast-track projects without adequate social or ecological safeguards. Strengthening accountability and transparency, while avoiding a "race to the bottom" in standards, is essential to achieving long-term sustainability.
Finally, the report points to the importance of creating incentives for change. Market forces, investment decisions and consumer expectations play a major role in shaping industry behaviour. To align economic interests with social equity and environmental regeneration, the report calls for policies and collaborations that embed sustainability into every level of the value chain, from extraction to recycling and circular economy innovation.
Beyond these themes, the report offers critical reflections on the global and national contexts driving the surge in demand for critical minerals. It warns that while the urgency of decarbonisation is undeniable, the speed of expansion risks repeating extractive patterns that harm ecosystems and communities. Examples such as the Panguna mine in Papua New Guinea and the Lynas rare earths facility in Malaysia illustrate the long-term consequences of weak governance and limited oversight.
Professor Park and her co-authors argue that achieving a just and sustainable transition requires transforming not only how minerals are sourced, but also the institutional and economic systems that underpin extraction. This means centring Indigenous rights, ensuring robust regulatory frameworks, investing in workforce readiness and fostering global cooperation to manage supply chain risks.
Despite the challenges, the report finds reason for optimism. Innovations in recycling, circular economy models and alternative materials, combined with growing public awareness and investor pressure for strong ESG performance, offer pathways towards a more equitable and sustainable energy future. The authors conclude that a truly sustainable transition will depend on reshaping not just energy systems, but also the broader institutional, economic and social frameworks that support them, ensuring outcomes that are socially inclusive, environmentally responsible and globally fair.