No energy transition and microchips without critical materials

More sustainable housing with solar panels, an economy that runs on green hydrogen, solar and wind energy, electrical vehicles and digital technologies: none of this is possible without critical materials such as lithium, cobalt and nickel, which often originate from countries that do not meet the minimum standards of the rule of law. Geopolitical developments mean that the supply of these materials is under threat and, as a result, so are our ambitions to become more economically and technologically independent, warns researcher David Peck.

By Jurjen Slump  ‱  April 6, 2023

© Marcel Krijger

For his dissertation, Peck, who works at the Faculty of Architecture and the Built Environment, researched how England dealt with the scarcity of materials during the Second World War. It turned out that the British government was able to halve the use of materials in two years by the strict supervision of supplies and a system of licences, permits, distribution and rationing. In doing so, the national government took a coordinating approach to the field of product design, which rapidly assumed a big role in developing solutions.

“At the time, everyone knew the cost of those scarce goods: many ships were sunk on the Atlantic Ocean by the Germans”, says Peck, who is himself British. “A lot of sailors died, so people took good care of the products they had.” The same applied during the Hunger Winter. “Everyone knew how little there was. Every gram counted.”

David Peck © Marcel Krijger

End of an era

Now, in 2023, Peck’s research – he obtained his PhD in 2016 – is more relevant than ever. The war in Ukraine has led to a grain crisis and rocketing energy prices. Corona has disrupted global production chains and China’s authoritarian course is causing headaches for politicians and companies: the United States is demanding that ASML stop delivering its most advanced chip machines to this country. And, furthermore, tensions are rising between China and Taiwan, which has a substantial chip industry.

These developments are causing government bodies to become more actively involved in industrial politics, as was the case during the Second World War. In September 2022, European Commissioner Thierry Breton announced the end of an economic era: an era with logistics based on ‘everything arriving at a particular spot precisely on time and specialisations that were spread across geographic regions’. “We live in a time of permanent crisis and all our dependencies can be used against us.”

According to Minister Micky Adriaansens (Economic Affairs), “This is proof that our economy must be resilient and that, where necessary, we must strengthen our strategic autonomy and our independent position as the Netherlands – and Europe – in a number of areas.” If one or two countries dominate the entire production of a specific group of products, this can lead to ‘excessive dependency’, the minister wrote last summer to the House of Representatives. “These days, we cannot afford to ignore this; we have to take it seriously.”

Adriaansens is committed to greening the economy and creating a circular industry to achieve these objectives. By generating energy from renewable sources and recycling materials, we can stop being so dependent on other countries.

What defines critical materials?

Many people would probably consider gold to be a scarce material and, thus, a critical one but it is not. The European Commission defines a ‘critical raw material’ as a raw material with a high risk of disruption of supply chains and, simultaneously, of huge economic importance.

  • A high risk of disruption of supply chains means that it may not be possible to meet the demands of European industry;

  • A large economic interest means that the material is of fundamental interest for the industry in that it adds value and creates jobs. These will be lost if the material is not available and if there are no suitable alternatives available.

AI, chips, batteries, hydrogen and robotics

Strategic autonomy goes hand in hand with technological sovereignty. Only with its own advanced technology can Europe thrive, remain independent and protect itself properly against external threats. At the same time, this technology is needed for the energy transition, for digitalisation and to guarantee our safety.

The European Commission is investing billions to this end. The primary focus is on AI, chips, the energy transition (batteries and hydrogen), quantum technology and robotics. All fields in which TU Delft has a leading position when it comes to education, research and innovation.

In the dark

The paradox is that we want to be autonomous but need a great many critical materials to realise this. “All the key technologies we are working on use critical raw materials”, says Peck. “Without them, you have no robotics, no wind energy, no electric cars, no smartphones, no sustainable houses, no laptops and no AI. Nothing. Without them, we would be sitting here in the dark.”

Action is vital, because the risk of disruption of our supply chains is growing rapidly. Research carried out by the European Commission shows that, compared with 2017, this risk has increased considerably for a substantial number of the raw materials deemed critical. “The list of materials from China is massive. If something happens in Taiwan, we will be in really deep water”, says Peck. Not only does this involve raw materials but semi-manufactured products, such as solar panels and chips, as well.

Minerals in a smart phone, source: Potomac Institute, Visual Capatilist Â© Greenmet

Recycling, remanufacturing and mining

Peck agrees with Breton and Adriaansens’ opinion that the way out is the transition to a circular economy and more efficient use and recycling of materials. “Recycling is essential”, he says. “Ultimately we will have to recycle everything.” The problem is that the demand is increasing faster than the supply. That is why we have to look at mining in Europe too. This is a highly controversial subject, Peck acknowledges, but it would help us to become less dependent quickly. “We cannot recycle ourselves out of this situation.”

Another topic on which Peck has carried out a great deal of research is remanufacturing. This entails making new products from old ones. It goes a step further than what are known as ‘refurbished products’, which are already available on the market. “Remanufactured telephones will be displayed in the shops next to brand-new ones but they will be indistinguishable from them.”

In fact, remanufacturing buys us time. “It does not solve the crisis regarding critical materials but, by reusing materials, you do get more time to think up solutions. Time is crucial.”

Innovation

Innovation plays an important role in all this. “The Netherlands may have few critical materials but it does have strong universities and research institutes, such as the Netherlands Organisation for Applied Scientific Research (TNO), that can make all the difference.” It is not just a question of developing key technologies but also of training technical personnel.

TU Delft is involved in a series of projects in the field of critical materials. Various faculties are playing a role in this: Materials Science, for example, is researching how recycled materials behave, Civil Engineering and Geosciences has expertise in the field of mining and Technology, Policy and Management (TBM) has a great deal of knowledge regarding administrative embedment and sustainable business models in house.

Product design

You cannot simply leave this to the market. “So far, the market has failed. The business community does not realise the urgency of the situation”, he says. “You need politicians and policymakers to make important decisions.” Ultimately, the faculty of Industrial Design Engineering will also make a significant contribution. This is because product design will play a substantial role in resolving the problems concerning critical materials, as it did during the Second World War.

Peck also has high expectations of what are known as ‘material passports’, in which AI and, in the future, quantum computing, will also play a major role. They will be deployed to establish when, where and in what products critical materials are used, which will enable high-quality reuse. “At the moment, we often have absolutely no idea of the history of these materials.”

Countries accounting for the largest share of EU sourcing of CRMs (2020) © European Commission

Elephant in the room

When will the Netherlands, and the EU, achieve this strategic and technological autonomy? This is out of reach of the Netherlands; the EU may eventually achieve it but only on the basis of mutual dependencies with multiple partners.

“I would like to ask another question”, says Peck. “How autonomous do we want to be  Ì¶  and what effects will that have?” The most important consideration is what we need as opposed to how much we want. “That is the elephant in the room. Everyone is talking about the demand for materials with which to make products whereas we should really be talking about what is necessary.”

“Strategic autonomy is possible if we live in keeping with what we really need and within planetary boundaries. But it will lead to enormous social change.” Universities are playing an important part in answering these questions, according to Peck. “It is a ‘wicked challenge’. There are no easy answers.”

And yet, the British managed during the Second World War. “A period of two years was all they needed to work things out. We can do it if we have to.”