Critical Minerals Create ‘Generational Opportunity’ for Development Yet Involve Myriad Risks if Not Governed Responsibly, Under-Secretary-General Tells Security Council

Critical Minerals Create 'Generational Opportunity' for Development Yet Involve Myriad Risks if Not Governed Responsibly, Under-Secretary-General Tells Security Council

(Note: A complete summary of today's Security Council meeting will be available at a later time.)

Critical minerals now underpin the technologies powering the digital economy and the energy transition, the Security Council heard today, as speakers said soaring demand for such resources creates opportunity for development but also geopolitical competition that could lead to conflict if not governed responsibly.

Rosemary DiCarlo, United Nations Under-Secretary-General for Political and Peacebuilding Affairs, told the 15-member Council that critical minerals are now "among the main drivers of the twenty-first century economy", essential to everything from smartphones to electric vehicles and medical technologies.

In recent years, minerals like lithium, cobalt and nickel have shifted from limited strategic value to resources that underpin the technologies powering the digital economy and the energy transition. "In 2023 alone, the trade in raw and semi-processed minerals reached approximately $2.5 trillion - representing more than 10 per cent of global trade," Ms. DiCarlo explained.

She framed the demand surge as both opportunity and risk, saying that demand could triple by 2030 and quadruple by 2040, offering a "generational opportunity" to create jobs and diversify economies.

Surge in Both Demand, Geopolitical Competition

However, the surge in demand is also fuelling geopolitical competition and exposing supply chains to instability. She warned that mining has been linked to human rights abuses and environmental degradation. "It is incumbent on both producing and consuming countries to adopt governance and regulatory frameworks that manage these resources responsibly for the benefit of all," she emphasized to Council members.

Ms. DiCarlo went on to say that the stakes are especially stark in conflict-affected States, where production is concentrated. "More than 70 per cent of global cobalt extraction occurs in the Democratic Republic of the Congo," she noted, pointing out that "most of the batteries that power our smart devices rely on this material". Myanmar is a major source of rare earths and Ukraine holds significant titanium and lithium reserves. In such contexts, she warned, mining when not managed responsibly can weaken governance, spur illicit economies and fund criminal and armed groups.

The Security Council has tools to respond, Ms. DiCarlo stated, noting the organ has imposed targeted measures, including sanctions, to curb illicit trade, and that Panels of Experts have helped identify violations, trace supply chains and strengthen implementation. Looking ahead, she stressed the need to ensure extraction delivers just and equitable outcomes by strengthening institutions and Governments' ability to negotiate fair agreements. She further emphasized the importance of boosting multilateral and regional action to improve governance and traceability and using UN peace tools to address resource disputes so parties can share benefits and develop cooperative relationships.

Complete Live Blog coverage of today's meeting can be found here.