Nothing can be produced without raw materials, which are closely dependent on each other. For instance, gas is needed to produce fertiliser and the price of electricity depends on that of gas. Globalisation has over the years obscured many of these dependencies, but today, new questions arise and old habits, such as protectionism, resurface.
According to raw materials expert Yves Jégourel (professor at the University of Bordeaux), who was a guest speaker at the New Year’s reception of the Federation of Luxembourg Industrialists (FEDIL), protectionism is not the right way to go.
He believes that without the necessary basic materials, the planned energy transition and decarbonisation of our economy is not possible, bearing in mind that the latter is largely dependent on China. Currently, three countries account for 70% of “manufacturing capacity for solar, wind, battery, eletrolyser and heat pump technology” with China “dominant in all of them”.
According to Jégourel, energy transition is based on 4 crucial pillars, all of which are dependent on raw materials:
1)Sobriety: Managing one’s energy consumption by avoiding excess and waste, whilst being fully that we are dependent on raw materials.
2)Electrification of transport: Promoting electric vehicles.
3)Development of low-carbon energy solutions: Wind, solar, hydro or nuclear power.
4)On a global level: Development of infrastructures, electric transportation, energy storage.
In order to execute the above, it is imperative for countries to establish international commercial agreements, create contracts with manufacturers and set up a global energy transition budget.
He further explained that opening new mines in Europe is not enough to make up for lost time. Globalisation should be rethought and renegotiated, and a raw materials “diplomacy” should be established, highlighting the importance of a multilateral approach when it comes to energy transition.
