Scarcity of raw materials, the expert Alessandro Giraudo:«This is why we risk a stop in supplies» – The interview

The university professor's comment on the plan developed by Brussels:«It comes too late, we have delegated the extraction to China, which now finds itself in a monopoly position»

The ecological transition is bringing with it a paradigm shift, which forces every sector of our economy - some more, some less - to rethink their development plans and take a new variable into consideration:the impact on the climate and the environment.A revolution that, inevitably, can only start from raw materials.In recent weeks, the European Commission has outlined its strategy with the Critical Raw Materials Act.The objective:ensure the supply of «critical raw materials», i.e. all those materials considered essential for the energy transition.They range from lithium, used in batteries and accumulators, to rare earths, a group of chemical elements with the most varied uses.The Italian government has also begun to move on the same front, having started a working table with ISPRA experts in recent months.According to the Ministry of Business, there would be underground at least 15 of the 34 critical raw materials.«Until now we have always delegated the extraction of these materials to China, which now finds itself in a position of almost monopoly», explains Alessandro Giraudo, professor of geopolitics of raw materials in Paris, Rome and Turin and author of the book When iron cost more than gold (ADD publisher).According to Giraudo, the strategy developed by Brussels moves in the right direction, but arrives with a guilty delay.«Immediate and very expensive investments are needed – specifies the expert –.This time it will not be enough to rely on private individuals, the States will have to intervene."

In his latest book, he writes that «a climate crisis was the cause of the transition from the Bronze Age to the Iron Age».Are there similarities with the challenges we face today?

«Between the 14th and 12th centuries BC, a major climate change affected our continent:droughts, famines and violent waves of migration that created new economic and political conditions.The transition from the Bronze Age to the Iron Age is a milestone in human history, but it also represents the collapse of some civilizations and terrifying human dramas.The climate crisis of our time is a very serious phenomenon because the film was accelerated.We see dense migratory flows:the UN estimates that 281 million people migrated in 2020 to escape harsh climatic conditions and also difficult political conditions, favored by the climate.It is possible to imagine movements of populations abandoning the regions between the two tropics, due to the effects on agriculture and the availability of water.The drought on the coasts of the Mediterranean basin could also be accompanied by similar phenomena in the Caribbean basin, on the south-western coast of North America, in the Indian basin, in the Indonesian basin and in the China Sea.I don't know if the world is totally aware of all this."

The ecological transition is rapidly changing the hierarchies of the most requested raw materials.What materials will prove most indispensable in the coming years?

«First of all lithium, the demand for which is destined to increase 40 times.If we want to accompany the energy revolution, we then need two essential metals:copper and nickel.An electric car, for example, contains at least 50 kilos of copper, many more than a combustion car.Then the famous strategic metals and rare earths are needed.There are around 70 metals in the mobile phone:indium (for the brightness of the screens), gold (for some essential contacts) and then neodymium, cerium, lanthanum, cobalt and many others.All new energy technologies also require many of these metals, which have become essential.Currently the level of investment in the sector is not sufficient to ensure a smooth flow into the future.Therefore it is possible to anticipate crises that will manifest themselves:price increases and shortages of some materials, as has already happened with semiconductors.Mine is not a pessimistic cry of alarm, but the most objective description of reality possible."

Today, China controls the most significant share of the global market for critical raw materials.Can the plans for the energy transition launched by the EU and the United States change the cards on the table?

«The extraction, refining and treatment of these materials is very polluting.They are “heavy” metals that have a negative impact on soil, water and air.For example, 1,900 liters of water are needed to extract one ton of lithium.Furthermore, there is a difficult to measure impact on the health of miners and men who work in the mines.The world has delegated this "painful" job to China.Now let's observe two reactions:Beijing benefits from a position of near monopoly, but pays a price that is too high - from an ecological perspective - for this position.The rest of the world, however, has realized that it is not strategically wise to depend on just one supplier.And this is where the late reactions from the United States and the European Union arise."

So is it still possible to change these balances or is it too late?

«It is still possible, but under three conditions.The first is of a financial nature:Very expensive and large-scale immediate investments are required, which however present risks.The second is time:we can get on a commuter train or a Frecciarossa, but today the second choice is mandatory.The third condition is political-social:the philosophy of. is spreading NIMBY (Not In My BackYard), which will make it necessary to make efforts to compensate  people harmed by the fact that a mine is opened in their region.But now two other philosophies are also developing.The first is BANANA (Build Absolutely Nothing Anywhere Near Anyone), to indicate that no such center should be built anywhere near anyone.The second is the idea CAVE (Citizens Against Virtually Everything):citizens against virtually anything."

The Italian government has announced the opening of a working group for the research and extraction of critical raw materials also in Italy.What potential does our country have?

«In Italy there are deposits in Piedmont, Liguria, Lombardy, Tuscany, Lazio, Sardinia:there are around 3 thousand abandoned sites.Italy has some deposits of strategic raw materials but there isn't everything on our territory.We can start developing these sites, but we need capital ready to take on the risk and, above all, there are countries that have much richer deposits that are easier to exploit.As a result, our minerals are often not competitive.It is necessary to correct these “geological injustices” with political solutions to make investments attractive.”

What else can Italy do to reduce dependence on foreign countries?

«We must begin to train, starting from schools and universities, the men and women capable of participating in this project.And Italy is late on this, also due to the fact that we no longer have mines.Furthermore, it is essential to think about recycling.I repeat:every mobile phone is a mine.But how many companies in Italy today recycle these materials?Worldwide, this activity currently represents 1% of global GDP and is expected to rise to 5% by 2050.What if we started to accelerate in Italy too?".

How do you judge the European strategy revealed in recent weeks with the Critical Raw Materials Act?

«It's a good idea, but we close the barn door after the cows have already escaped.In other words, the project is very interesting but comes late.The United States had a program of this type already in the 1970s, which then collapsed due to an abundance of raw materials.The structure of the program is interesting, which includes extraction, treatment-processing and recycling.I hope that it is not just a list of good intentions and that we will all participate in his funeral."

The exchange and trade of raw materials is historically linked to wars, migrations and human trafficking.How can this new "race for critical raw materials" be managed, especially in Africa, without resulting in a new form of colonialism?

«Africa is a true cornucopia.Today we observe a growing presence of Chinese, Russians and a progressive European abandonment of the continent.I am referring to the Bolloré Group, which has sold its ports in Africa, and to BNP which has decided to abandon the continent where possible.The Americans, after the coup of uranium coming from the former Belgian Congo to produce the first atomic bomb dropped on Hiroshima, have almost abandoned Africa.Today, however, the USA is self-sufficient and, consequently, less and less interested in the African continent.Is all this neocolonialism?Yes, but not if we make a concrete commitment to help those countries with infrastructure, education or healthcare.I think Enrico Mattei's idea could be revived."

Oil has been the cause of wars and geopolitical clashes.Is it plausible that the same could happen for critical raw materials?

«The equation oil=war is dramatically evident.Examples in this sense are plentiful.Certainly the same could happen for strategic raw materials, but the response must be modulated.These materials are relatively abundant and their distribution is scattered across the Earth.So maybe the answer isn't so automatic.If numerous countries start looking for these raw materials under their feet, it is still possible to avoid dangerous geographical concentrations."

In addition to human rights, there is the environmental issue.Are we already able to extract these raw materials while minimizing emissions?

«These materials are polluting, so it is difficult to carry out “Snow White” operations.However, technology can help us.We are only at the beginning of widespread research in the extraction, processing and recycling sector.If social pressure increases, it is possible to think about important investments in research that will help the fight against pollution resulting from these raw materials.But, once again, it is necessary to put billions of euros on the table.A fringe of international private capital may be interested, but it is probably necessary to imagine the participation of states or intergovernmental programs as well."

Photo credits:Reinhard Jahn | Chuquicamata, the largest open pit copper mine in the world