Technology-Driven Opportunities and Risks to Sustainable Development of Critical Minerals in Developing Countries

An energy sector transition to support action against climate change is underway. This transition is strongly driving increased demand for the critical minerals that are needed for the energy generation and storage technologies that are supplanting fossil fuel use. As a result, developing countries are witnessing an increased demand for mineral resources within their sovereign territories, and many countries are looking to take advantage of opportunities for economic growth. These opportunities entail substantial investment to develop extraction and production capacity, much of which is derived from foreign sources. However, the development of these resources can present developing countries with challenges. Among these challenges are technological factors, such as greater efficiency in production and mineral sourcing; increasing commodity demand; technology market size and possible growth or contraction; barriers to technology adoption and commercialization; and industry and market disruption.

From May 29 to May 30, 2024, the United Nations’ Department of Economic and Social Affairs hosted an expert group meeting (EGM) titled “2024 DESA Expert Group Meeting: Harnessing the Potential of Critical Minerals for Sustainable Development” at the United Nations’ New York headquarters. The EGM was organized to support the writing of the United Nations’ annual World Economic Situation and Prospects report for 2025. In this paper, the authors present a consolidated version of their remarks delivered at the EGM and offer general strategic guidance on the technological factors that affect economic development and the mining sector.