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EU’s strategic mineral deals: Are green goals compromising ethical standards?

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When it comes to securing a steady supply of critical minerals, the European Union’s recent choices of partner countries raise significant ethical and environmental concerns. As the EU strives for climate neutrality by 2050, its approach to securing transition minerals through Strategic Partnerships might be clouded by contentious alliances.

The controversial new partnership with Serbia

Last week, the EU signed a Strategic Partnership on critical minerals with Serbia. This decision has sparked controversy, as mining expansion in Serbia—especially given its rich lithium deposits—has faced significant local opposition. In 2022, Serbia’s government revoked lithium mining licenses amid accusations of overlooking potential environmental harm. However, following legal action by Rio Tinto’s Serbian subsidiary, a Serbian court recently overturned this decision, much to the dismay of environmental activists.

What are strategic partnerships?

The EU’s Critical Raw Materials Act, introduced earlier this year, emphasizes Strategic Partnerships and trade deals as central to securing the minerals essential for the transition to low-emission technologies and the electrification of transport. These partnerships are part of the EU’s broader strategy to achieve climate neutrality by 2050. Since 2021, the EU has signed such agreements with 14 countries: Serbia, Argentina, Australia, Canada, Chile, the Democratic Republic of Congo (DRC), Greenland, Kazakhstan, Uzbekistan, Namibia, Norway, Rwanda, Ukraine and Zambia.

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Questionable choices and ethical concerns

While the need for transition minerals is clear, the EU’s choice of partners raises questions about its commitment to social, environmental, and governance standards. The following countries exemplify the ethical and environmental dilemmas involved:

  1. Rwanda: The mining sector in Rwanda, particularly for tantalum, tungsten, and tin, has been associated with conflict minerals from neighboring DRC. These minerals fund armed groups and perpetuate regional violence. Without stringent safeguards and transparent supply chains, the EU risks complicity in these conflicts.
  2. Australia: Australia’s mining industry has a troubling history of disregarding Indigenous Peoples’ rights. Projects have proceeded without consent, leading to cultural and environmental destruction, as seen with the Juukan Gorge caves incident. The EU must ensure that its partnership with Australia respects and protects Indigenous rights.
  3. Argentina: Argentina’s lithium mining has been criticized for environmental degradation and excessive water usage. In the Puna region, lithium extraction consumes vast amounts of water, threatening local communities and ecosystems. The EU must prioritize responsible mining practices to mitigate these harms.
  4. Uzbekistan: Partnering with Uzbekistan raises ethical concerns due to its authoritarian regime and oppressive practices. Mining operations in such an environment often lack transparency and accountability, potentially undermining the EU’s human rights and democratic values commitments.
  5. DRC: The DRC’s mining sector has been plagued by corruption. Reports indicate that lithium deposits have generated substantial profits for shell companies linked to corruption scandals. The EU must implement stringent supply chain due diligence and collaborate with the DRC government to combat corruption.

The need for responsible growth

To balance its climate goals with ethical standards, the EU must carefully consider the social, environmental, and governance implications of its Strategic Partnerships. Securing transition minerals is vital for reducing dependency on external powers and supporting net-zero technologies, but it should not come at the cost of human rights abuses and environmental degradation.

Ensuring ethical standards

The EU can maintain its ethical standards and global credibility by:

  • Selecting partner countries with strong governance and responsible mining practices.
  • Developing Roadmaps that outline responsible extraction methods and involve input from affected communities and civil society.
  • Ensuring transparent and accountable supply chains to prevent complicity in conflicts and corruption.

By addressing these challenges, the EU can ensure that its energy transition is fair, sustainable, and aligned with its commitment to human rights and environmental protection.

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