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we are on the verge of a global boom in mining linked to the energy transition

by 2040, the IEA forecasts that demand for lithium will have increased 42 times relative to 2020 levels

In the US and Europe, policymakers increasingly talk about a “race” to secure the minerals linked to energy transition and shore up domestic supplies; the idea of a “new cold war” with China is frequently invoked

natural resource sectors, which include extractive activities like mining, are responsible for 90% of biodiversity loss and more than half of carbon emissions. One report estimates that the mining sector produces 100bn tons of waste every year. Extraction and processing are typically water- and energy-intensive, and contaminate waterways and soil. Alongside these dramatic changes to the natural environment, mining is linked to human rights abuses, respiratory ailments, dispossession of indigenous territory and labour exploitation. Once the minerals are wrested from the ground, mining companies tend to accumulate profits and leave behind poverty and contamination. These profits only multiply along the vast supply chains that produce electric vehicles and solar panels. Access to these technologies is highly unequal, and the communities who suffer the harms of extraction are frequently denied its benefits.

battles between competing visions of a low-carbon world are intensifying – and they will become increasingly central to politics across the world

there are multiple paths to rapid decarbonisation

A transportation system based on individual electric vehicles, for example, with landscapes dominated by highways and suburban sprawl, is much more resource- and energy-intensive than one that favours mass transit and alternatives such as walking and cycling

Chilean activists are clear: there is no zero-sum conflict between fighting climate breakdown and preserving local environments and livelihoods. Indigenous communities in the Atacama desert are also on the frontlines of the devastating impacts of global heating. Rather than an excuse to intensify mining, the accelerating climate crisis should be an impetus to transform the rapacious and environmentally harmful patterns of production and consumption that caused this crisis in the first place

Doing Business is a sort of economic cholesterol check — important, even critical, but not the whole story.

some critics perceive Doing Business as a libertarian argument against the collection of taxes. On the contrary, Doing Business facilitates the participation of companies in the formal economy, including the payment of taxes and respect for the legal framework

The consensus, quite reasonably, calls for more women’s economic empowerment in the developing world. If we want to see empowerment, that generally means women participating in the formal economy, accessing loans from banks, and participating in global supply chains. Any business that seeks bank loans or seeks to participate in supply chains needs to be a formal business. Making it easier for anyone to start a business also has a positive impact on women’s economic empowerment

The Doing Business indicators have been subject to a number of methodological adjustments. These have been relatively minor in impact on most countries’ rankings. In the case of Chile, for a variety of reasons, the rankings swung more wildly, in such a way that the center-left Michelle Bachelet administration accused the World Bank and the rankings of being politically motivated. To make matters worse, Paul Romer, then the chief economist of the World Bank, in response to a question from the Wall Street Journal about the possibility of the the ranking being “tainted by the political motivations of bank staff” seemed to imply that he found the rankings unfair and misleading, and he said he would “recalculate national rankings of business competitiveness.” This caused a furor. Romer retracted his statement within 72 hours, the World Bank board reviewed the indicators, and management formally responded.

In the future, the World Bank’s money will be less and less important. Instead, its analytics, data, and ability to share lessons across countries are going to be increasingly valued. The World Bank imprimatur also matters more than we appreciate in the United States. The Doing Business indicators should be a big part of the World Bank’s future. Countries that seek to make improvements in their rankings of Doing Business are countries that seek to have better governance and have reform-minded governments. After 15 years of effort, Doing Business has improved with time and is one of the most valuable assets of the World Bank Group.

By directly acquiring mines, accumulating equity stakes in natural-resource companies, making long-term agreements to buy mines’ current or future production (known as “off-take agreements”), and investing in new projects under development, Chinese firms traded much-needed capital for outright control or influence over large shares of the global production of these resources. Despite China’s slowing growth and a major pullback in its foreign direct investment in other sectors, the government has maintained robust financial support for resource acquisition; mergers and acquisitions in metals and chemicals hit a record high in 2018.

China lacks significant reserves of three resources vital to its tech ambitions: cobalt, platinum-group metals, and lithium. It has successfully employed two strategies to secure control of them. One is driven by China’s state-owned enterprises (SOEs), which use development finance and infrastructure investment to embed themselves in higher-risk countries, establishing close ties with government leaders. The second is investment by state-linked private firms in market-based economies. Both strategies have shown agility and an ability to effectively adapt to local circumstances to achieve the same end.

Chile is home to 57 percent of the world’s known lithium reserves, the world’s largest known concentration, and SQM controls roughly half the country’s production

DRC is home to nearly two-thirds of the world’s cobalt production and half of its known reserves. Those resources are the prime target of investors for the booming battery industry. Over a decade of steady engagement, China has staked out a dominant position by developing strong political ties and investing in production assets and related infrastructure

China’s SOEs and private firms have made at least eight major equity and off-take plays in platinum-group metals in the Bushveld Complex. Such investments in South Africa’s highly concentrated and strategic resource deposits have helped make metals the country’s leading source of export growth, with nearly 50 percent of its metal exports going to China—tying South Africa’s economic welfare directly to Chinese investment.

the three countries where nearly 90 percent of global lithium production and more than three-quarters of the world’s known lithium reserves are located: Chile, Argentina, and Australia. In just six years, China has come to dominate the global market: More than 59 percent of the world’s lithium resources are now under its control or influence

China now owns or has influence over half of the DRC’s cobalt production, and has a massive stake in its mining industry. Six months ahead of the presidential elections, the event also sent a strong message to candidates about China’s deep investment in copper and cobalt mining—which constitutes 80 percent of the DRC’s export revenue and thousands of jobs—and its capacity to influence the future of the DRC’s economy

Natural resources are abundant in China; it is the No. 1 producer and processor of at least ten critical minerals and metals that are essential to high-tech industries and upon which China’s commercial and strategic competitors depend. To reinforce its strength, Chinese firms are acquiring mines and output from the next-largest producers and reserves, giving China both an economic edge in the next high-tech industrial revolution and increasing geopolitical power.

In a cash-strapped industry, Chinese firms are financing mine expansion and new development in exchange for a guaranteed supply of lithium in both mature and emerging markets. In Argentina, where President Mauricio Macri is eliminating mineral export taxes, reducing corporate tax rates, and allowing profit repatriation, China is establishing a dominant position in the nascent sector with “streaming deals,” which provide development capital in exchange for future lithium yields to help projects get off the ground. Chinese firms, led by Ganfeng, have stakes in 41 percent of the country’s major planned projects that account for 37 percent of Argentina’s reserves. This raw-material strategy is already coming to fruition: Lithium export volumes from Argentina to China rose nearly fourfold from 2015 to 2017, and China has secured access to the country's lithium for the longer term.

This same strategy, combined with asset acquisition, has also been successful in Australia, whose proximity to China, significant lithium reserves, and broad political support for mining investment have attracted Chinese investment. Tianqi and Ganfeng have established stakes in 91 percent of the lithium mining projects underway and 75 percent of the country’s reserves, including some of the world’s largest.

Though the final agreement included restrictions on Tianqi’s board and committee participation and its access to SQM’s sensitive data, Tianqi’s equity position still confers considerable influence over SQM.

Perhaps the best-known example both of China’s natural-resource dominance and its willingness to exploit it is rare-earth elements, a group of 17 elements that (despite their name) are commonly found, but rarely in concentrations that can be economically extracted. They are important materials for the defense, aerospace, electronics, and renewable energy industries. Over the past two decades China has produced more than 80 percent of the world’s production of rare-earth elements and processed chemicals. In 2010 it cut off exports to Japan amid rising tensions over the East China Sea, and the following year it imposed export quotas that threw governments and manufacturers into a panic. But with the exception of Japan, the attention to this critical vulnerability was short-lived, and little action was taken by other countries reliant on imports to diversify their resources or develop minerals action plans of their own.

China declared rare-earth elements a strategic resource in 1990 and prohibited foreign investment in the sector. Six state-owned enterprises control the industry, and the government cut production quotas in 2018 by 36 percent. With global demand for rare-earth elements projected at a compound average growth rate of more than 17 percent to 2025, a supply crunch is likely approaching—and China is already securing other nations’ supplies

While Russia strictly limits foreign participation in rare-earth element development, Chinese firms have accumulated off-take agreements and stakes in rare-earth element mines in Australia and Brazil

in 2017, China’s Shenghe Resources and two U.S. private equity firms acquired the sole U.S. and North American rare-earth element producer and processor, Molycorp, and its idled mining operations at Mountain Pass, California.

In 2016, China’s Yellow Dragon Holdings Ltd. co-invested with Bushveld Minerals, the primary vanadium developer in South Africa’s massive Bushveld Complex, to acquire Strategic Minerals, which owned the Vametco vanadium mine and plant. Yellow Dragon subsequently increased its investment in Bushveld Minerals and has become the fifth-largest shareholder. The holdings deepen China’s influence over South Africa’s vanadium resources and its role in the country’s emerging high-tech sector

China’s position is even stronger in graphite, a crystalline form of the element carbon whose high conductivity makes it a major component in electrodes, batteries, and solar panels, as well as industrial products such as steel and composites. For the last 20 years, China has been the leading global supplier of graphite, representing nearly 70 percent of the world’s production in 2018 and 24 percent of its reserves. While synthetic graphite, which is produced from petroleum coke, is an alternative, unfavorable economics constrain its use

New projects are concentrated in Mozambique, where the world’s largest graphite mine and fourth-largest known reserves are located. Already, Chinese firms have secured off-take agreements with the three major developers in Mozambique for the majority of their graphite production, and they are financing new development.

Japan is 90 percent reliant on China for its graphite

This resource consolidation could determine whether China is able to overcome the last major hurdle to achieving its ambitions: a competitive semiconductor industry.

Semiconductors can be pure elements or compounds and altered with impurities to improve their conductivity. Several materials are now being used to improve speed and performance, including rare-earth elements, graphite, indium, gallium, tantalum, and cadmium. China is the dominant producer of five out of the six, controls more than 75 percent of the world’s supply of three, and is consolidating control over them all

Should China succeed technologically, its capacity to scale production and flood markets (as it has already done with solar panels and wind turbines) has serious implications not only for leading semiconductor producers, but also for national security, if Chinese-manufactured chips are embedded in the devices upon which our data-driven lives, our economies, and our defense systems increasingly depend. While government and industry officials have started to restrict semiconductor sales and scrutinize Chinese acquisition of technology firms—e.g., the United States’ temporary ban on selling semiconductors to ZTE, or the recent flare-up over Huawei —such moves are strengthening China’s resolve to develop its domestic industry. More attention should be paid to its efforts to consolidate critical raw materials and the computing power they confer.

In April, U.S. government officials announced plans to meet with lithium industry leaders and automakers with the intention of developing a national electric-vehicle supply chain strategy. It is a start.

Chinese and Russian aggression against the democracies is likely to grow, the United States might critically weaken, and the EU seems firmly set on pursuing a middle path. Instead of worrying about looking back to the past, leaders in Ottawa, Canberra, and London should embrace the idea and propose a significant deepening of their foreign-policy coordination. This is most definitely not about “getting the band back together,” as one British Conservative member of Parliament greeted a trade talk announcement, but three middle powers building an anti-authoritarian group to resist great-power bullying in the 21st century.

A mini C-3 format would offer the best approach: a summit with follow-up that is both flexible and lightweight enough to get off the ground but with a permanent working group in foreign ministries advancing dossiers and initiatives. As the C-3 are all Commonwealth countries, summits could be timed to coincide with the biennial Commonwealth Heads of Government Meeting, where the leaders of Canada, Australia, and Britain regularly meet anyway.

Drawing both on Britain’s joint initiative with Canada to block Putin attending the G-7 and on Canada’s humiliating experience at the U.N., among this C-3’s first tasks should be to coordinate joint positions inside the U.N., G-7 and G-20. As far as major goals are concerned, this could include supporting any future attempts of Canada to win a seat on the U.N. Security Council and for Australia to formally join the G-7.

This is not about replacing working with the EU or the United States but creating a group for Canada, Australia, and Britain to jointly present tougher anti-authoritarian packages to big powers than had they tried to individually present them alone. The C-3, like the E-3 to the EU, would be complementary to existing Euro-Atlantic bodies.

deeper cooperation between Britain, Canada, and Australia has an image problem

imperial nostalgia or conservative culture politics

too anchored on ethnic fraternity

the idea needs to be decolonized

what about other middle powers? Why not include, say, Japan? This is where two critical principles of international politics come into play: Does your grouping have enough like-mindedness to be able to function and enough load-bearing capacity to get anything done? What Canada, Australia, and Britain are after is mutual geopolitical support; adding members that aren’t willing to offer that risks creating another talking shop like the Franco-German Alliance for Multilateralism. That group, which stretches from Chile to Kazakhstan, lacks the ability to agree on anything of substance—and the power to act on it.

there are simply not a lot of like-minded democracies to go around

Ottawa, Canberra, and London didn’t need each other in a U.S.-led world order or in a relatively benign world without authoritarian superpowers. But that system has decayed. Deep divisions, not just between the Europeans and Donald Trump, but with much of the U.S. national security establishment, are breaking up the old Washington-led ideological West. The common anti-authoritarian frame that once glued together Western foreign policy has come unstuck

In this world, the C-3 is a liberal international, not a nationalist, cause

Operators of hyperscale data centers, those with more than 5,000 servers, are migrating to places where water is plentiful, such as Norway, but also to drought-prone places like Italy and Spain where energy is cheaper—and where extreme heat is becoming the norm.

A survey conducted last year by the Uptime Institute, a consulting firm, found that only 39% of data centers even tracked their water use, a 12 percentage-point drop from 2021. Tech companies in the past have refused to disclose information about individual centers’ energy and water consumption, claiming that such data was a trade secret.

Over the last couple of years, Google, Meta and Microsoft have started publishing their total water use across their operations, but they don’t break the number down by business unit nor use standardized metrics. Bluefield Research has estimated data centers use more than a billion liters of water per day, including water used in energy generation.

Operators often use shell companies to apply for planning permissions, and a data center can look like any large warehouse or factory from the outside.

Arman Shehabi, a researcher at the Lawrence Berkeley National Laboratory in California best known for a landmark paper on energy consumption at data centers, thinks the facilities could contribute to scarcity as droughts become longer and more intense. Part of the problem, he says, is that data center operators “are generally the last ones to the table to ask,” straining the system by asking for access to scarce water after agricultural interests and local communities have already come up with a plan. “Everybody is going to feel that,” he says.

Companies say data centers are getting more energy-efficient, but the increase in overall demand for computing power is outpacing such gains.

The specialized chips required for AI—broadly known as accelerators—emit so much more heat than general-purpose chips do that data center operators are having to rethink their cooling systems entirely

over time data centers will need to radically change the way they dissipate heat. The gold standard, he says, is a process called immersive cooling, in which servers are bathed in a special fluid that transfers heat from the chips. For now, operators are likely to opt for a hybrid model, wherein a high-performance section of the data center will be liquid-cooled while the rest will continue to use air conditioning

Amazon Web Services, Google and Microsoft have all made water stewardship pledges, promising to use more nonpotable and recycled water and to replenish more water than they consume operationally by 2030. This is the equivalent to offsetting carbon by planting trees—something that looks good on paper but may not directly benefit the communities affected by data centers, because water may be replenished only in places where it’s easy to do so.

Only half of 1 percent of the world’s water supply is fresh water in liquid form. The rest is saltwater or frozen into glaciers.

its biggest use, globally, is for food production

“It’s much more useful and easier to live with if the water all comes regularly and without these extremes. But more and more, that’s not the case.”

If surface water is in short supply, people often turn to groundwater, which can be rapidly depleted. In India, nearly 60 percent of the population makes a living from farming. For decades, the government supported farmers by subsidizing the cost of diesel to run water pumps and tractors and by purchasing wheat and rice at an artificially high price. Water demand to irrigate rice and wheat fields is contributing to groundwater depletion in the northern region of Punjab.

“More people demand more water, but also each person demands more water as they get wealthier,” Iceland said. “So as you get wealthier, you move from a more grain and vegetable-oriented diet to a more meat-oriented diet.”

Growing and feeding a cow to create one pound of beef requires as much as 1,800 gallons of water, by some estimates. Calorie-for-calorie, that’s almost eight times as much water as vegetables and 20 times as much water as cereals like wheat and corn.

Water-intensive crops like sugar cane and cotton could also drive demand in sub-Saharan Africa, where water use is expected to double over the next 20 years. Many areas still lack infrastructure to reliably deliver water for irrigation. As those pipelines are built, more farmers will have access to water, which will further strain surface water supplies. Inefficient water use and unsustainable management could lower gross domestic product in the region by 6 percent, according to WRI.

One Saudi company is growing alfalfa in the Arizona desert, pulling from the area’s groundwater supplies. That alfalfa is then shipped overseas to feed cattle in Saudi Arabia, where industrial-scale farming of forage crops has been banned to conserve the nation’s water.

Water is also integral to mining lithium and other minerals used in electric vehicle batteries and renewable energy infrastructure. These critical minerals are often found in arid places like Chile, which is already water-stressed and is projected to use 20 percent more water by 2050, according to WRI.

Since farming accounts for the most water use globally, experts say that micro-sprinklers and drip irrigation instead of flood irrigation are an important solution.

reducing meat and dairy consumption can decrease individual water footprints. Reducing food waste could also help reduce water use. In the United States, more than a third of food ends up in the landfill. The biggest single contributor to food waste is throwing away food at home.