Decarbonisation strategies for critical mineral supply chain: State-of-Art in mining and refining industries

Despite their vulnerability to climate change, mining and refining industries significantly provide energy transition materials. However, if no mitigation is implemented, the demand growth will increase direct and indirect emissions in the critical mineral sector. This research aims to comprehensively evaluate the decarbonisation agenda in lithium, nickel, and cobalt industries by profoundly examining the performances, strategies, and risks associated with climate transition. This study examines company reports of 27 players that accounted for at least half of the global lithium, nickel, and cobalt production. This study uses content analysis methodology to reveal patterns in decarbonisation targets, performances and practices. More than two-thirds of the observed companies favour onsite solar and wind generation. At least one-third of the samples mention energy-efficient equipment and electric vehicle adoption. Despite having a well-crafted strategy to reduce operational emissions, more efforts are needed to reduce the value-chain emissions. This study highlights the need for improvement in the carbon inventory and disclosure of scope three emissions by utilising artificial intelligence and maintaining strategic partnerships with stakeholders. Political, economic, social, technological, legal, and environmental (PESTLE) analysis also revealed patterns and linkages among the current decarbonisation challenges and opportunities, of which the industries are vulnerable to demand fluctuation, rising from regulatory and technological changes. This study highlights the current dynamics in the critical mineral supply chain, which may affect decarbonisation strategies in the industry. This study also provides a holistic approach to offer empirical practice for the industries, allowing them to tailor their strategies. • Most companies with lithium businesses have emission intensity between 48 and 217 tonnes of CO 2 -e per million US$ revenue. • Companies with nickel or cobalt businesses have scope 1 and 2 emissions higher than one million tons of CO 2 -e. • The lack of scope 3 emissions disclosure is caused by the complexity of collecting accurate and reliable data from suppliers. • A significant amount of scope 3 emissions come from purchased goods and services in the lithium industries. • The processing of sold products dominates the scope 3 emissions in the nickel and cobalt industries. • Carbon pricing is more prominent in lithium industries, while carbon capture is considered more in nickel and cobalt ones.