No energy transition and microchips without critical materials

Scarcity And Undesirable Dependencies Threaten Strategic Autonomy

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 Photo 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.”

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.

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’ (CRM) 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.

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.

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 teaching, research and innovation.