Corruption in critical minerals is an emerging threat to the global energy transition, a new report by Transparency International has warned.
New research shows that more than half of global reserves of 11 of 14 key critical minerals required for the energy transition are found in corrupt-prone jurisdictions. This includes 91% of the world’s rare earths, 74% of cobalt and 67% of nickel. Other critical minerals located in corrupt-prone jurisdictions include 44% of the world’s copper and 28% of lithium.
These critical minerals are vital to meeting the growing demand for electric vehicles, batteries, solar panels and wind turbines. But without stronger governance frameworks, corruption risks in the global critical minerals sector could derail the energy transition.
Corruption in mining also lines the pockets of political elites and robs governments and communities of much needed investments in schools, hospitals, and infrastructure.
Clancy Moore, CEO of Transparency International Australia said:
“The potential for hidden ownership, under-the-table bribes, and secret deals being made behind closed doors could turn the energy transition into yet another ‘resource curse’ for communities.”
“The world’s hunger for critical minerals means countries like Australia must raise the bar on ESG standards. Implementing the Extractive Industries Transparency Initiative, the gold standard in mining, oil and gas governance, would be a step in the right direction.”
Dr Ana Carballo, Manager of Transparency’s International Accountable Mining Programme said:
“Corruption and governance failures not only jeopardise the energy transition, they also place local communities and fragile ecosystems at severe risk.”
“A just transition requires that governments and mining companies tackle corruption head-on, ensuring that the shift to renewable energy does not come at the expense of environmental sustainability or human rights.”
Alarmingly, key commodities are predominantly located in countries with governance scores below the global average. 57% of the world’s cobalt reserves are in the Democratic Republic of the Congo, which scores just 20/100 on the Corruption Perceptions Index (CPI), while Indonesia, holding almost 42% of nickel reserves, scores 37/100 on the CPI.
At the same time, geo-political competition for rare earths and other critical minerals is intensifying, adding further pressure on resource-rich but governance-challenged nations.
The scramble for control over critical minerals risks exacerbating corruption and instability, particularly in jurisdictions where transparency and accountability mechanisms are weak.
Over two-thirds of critical minerals projects are located on territories of land-connected peoples, the majority of which are Indigenous Peoples’ lands, and often in areas facing high water stress and biodiversity loss.
The report uses U.S. data to map global reserves of 14 critical minerals by country and overlays this with the 2024 Corruption Perceptions Index (CPI) which measures countries perceived levels of public sector corruption.
By linking CPI scores to mineral reserve data, the report highlights countries where weak governance could undermine the secure supply of critical minerals and the elevated risks where corruption may exacerbate challenges for communities and the environment.
The report also examines governance frameworks, environmental and social impacts in Argentina, Australia, Colombia, Indonesia, Madagascar, South Africa, and Zambia.
Transparency International calls on governments, investors, and industry leaders to implement strong governance reforms urgently. Such measures are essential to ensure that the energy transition is not only swift and efficient but also equitable and transparent, safeguarding both local communities and our planet.
Research methodology
Transparency International developed a global mineral reserves database to visualise the percentage of global reserves and production of critical minerals located in countries with weak governance scores as measured by perceived levels of corruption.
This involved importing data from the Mineral Commodity Summaries (2024) from the U.S. Geological Survey for fourteen critical minerals – bauxite, chromium, cobalt, copper, graphite (natural), lithium, manganese, molybdenum, nickel, rare earths, tin, titanium mineral concentrate, titanium and titanium dioxide, and zinc.
The country-level data was then overlaid with Transparency International’s 2024 Corruption Perceptions Index (CPI) scores. An assessment was then made by looking at the percentage of global mineral reserves in countries with a CPI score lower than the 2024 global average of 43/100. The CPI scores countries from 0 (highly corrupt) to 100 (very clean) on perceived level of public sector corruption and anti-corruption efforts. The CPI is derived from 13 data sources including the World Bank, Freedom House, The Economist Intelligence Unit and comprises more than 10 thousand data points.
