IDA presents four ways to a more sustainable raw materials supply

The green transition requires enormous quantities of critical raw materials such as lithium, cobalt and nickel. But instead of focusing solely on extraction, Denmark should play a key role in developing solutions that reduce import dependency on critical raw materials. This is the conclusion of a new report from IDA, The Importance of Critical Raw Materials for the Green Transition, which identifies four areas where Denmark can make a difference.

‘We must leverage our strengths – not compete with China in mining, but use our knowledge, innovation and responsibility to create sustainable supply chains,’ says Laura Klitgaard, President of IDA.

Artificial intelligence and new materials

IDA has delved into four areas that show how Denmark can both strengthen its green industry and reduce its vulnerability in terms of raw material supply. A key theme in the report is the use of artificial intelligence to accelerate the development of new materials that are independent of critical raw materials.

Today, it typically takes decades to develop new materials – the Li-ion battery alone took 20 years – but with AI, that time could potentially be reduced to just five years.

AI can analyse enormous amounts of data and predict how new material compositions will behave before they are tested in the laboratory. This allows researchers to more quickly develop batteries, catalysts and other energy components that do not require rare metals. Denmark already has strong research environments at DTU and in industry with projects such as CAPeX and BIG-MAP, which show that AI can reduce dependence on scarce raw materials.

‘Denmark has both the technology and the expertise, but we lack the investments that can get the research off the ground and into industry. This is where we can create new green jobs while strengthening Europe's strategic autonomy,’ says Laura Klitgaard.

IDA recommends that Denmark increase research investments in AI-driven materials development and create better access to risk capital for the many technology start-ups working in this field. Otherwise, Denmark risks losing innovative start-ups to the United States or China, where access to financing is currently easier.

Longer lifespan and less waste

Another focus of the report is to extend the lifespan of products that contain critical raw materials. Electronics, electric cars and appliances are often discarded long before they are worn out. Either because they cannot be repaired or because it is easier for consumers to buy new ones. This is a huge waste of resources.

IDA therefore proposes a combination of better design, repair-friendly products and financial incentives for consumers. Specifically, it recommends a repair index that shows how easy a product is to repair, together with a permanent subsidy scheme for repairs, as is the case in France.

’When a product lasts longer, we save both energy and materials. It's common sense and good climate policy,‘ says Jens Dahlstrøm, senior consultant at IDA, and continues:

’Experience shows that extending the life of electronics provides five times greater climate benefits than recycling. This shows how important it is that we design smarter and consume more wisely.’

Recycling as a growth track

Denmark should also strengthen the circular economy by designing products that are easier to separate and recycle, IDA suggests. This will both reduce the environmental impact and create new green business opportunities. According to the report, public procurement should increasingly require the use of recycled materials, and Denmark should invest in new technology that can increase the quality of recycled materials.

If recycling is already considered when new products are designed, it must be done with a view to how they can be disassembled and reused when they have served their purpose. In this way, we create the basis for a sustainable industry that both saves resources and creates jobs.

Socially responsible mining

IDA also recommends that Denmark actively work for an EU directive that requires social impact assessments for new mining projects. This will ensure that extraction is carried out responsibly and with respect for both people and the environment. Several mining projects in the EU are currently being held back by local opposition because the consequences for local communities are only discovered too late in the process.

A common EU directive should create greater transparency, give local people a say and ensure that new mining projects contribute positively to local communities through investment in infrastructure, education and employment.

‘If we are to have more mining in Europe, we must do it properly,’ says Jens Dahlstrøm. ‘By taking into account the people who live close to the mines, we must avoid conflicts and create real support for the projects that will secure our supply.’

Denmark still lacks a plan

IDA recommends that the government set up a working group as soon as possible to lay the groundwork for a national raw materials strategy that includes critical raw materials.

Denmark has signed up to the EU's common raw materials strategy for critical raw materials – the Critical Raw Materials Act – but has not yet followed up with national objectives, priorities or an implementation plan.

This means that responsibility for the area is spread across ministries and agencies. According to the report, the lack of a strategic approach was evident in the closure of the Knowledge Centre for Mineral Resources (MiMa) under GEUS at the beginning of the year. A few months later, the centre was reopened as D-MIC, the Danish Mineral Intelligence Centre.

’We need a long-term, concerted effort that cuts across sectors and ministries. Without a clear direction, we risk losing both technological progress and green jobs – while other countries move ahead,’ emphasises Laura Klitgaard.

The full report The importance of critical raw materials for the green transition can be read here (in Danish).