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ClimateXChange - Scotland's critical raw materials - September 2026 (2 MB)
Report in HTML

Authors

  • Emma Watkins, Logika
  • Julie Sandilands, Logika Group
  • Rebecca Wells, Logika Group
  • Dan Hill, Logika Group
  • Lola McAuley, Logika Group
  • Edward Worsdell, IEEP UK
  • Michael Nicholson, IEEP UK

Published

14 September 2026

Contact

Emma Dore
Project Manager - Climate, business and industry
emma.dore@ed.ac.uk
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Scotland’s critical raw materials supply chain for the net zero energy sector: opportunities and risks

Many of the technologies needed to reach net zero – including hydrogen, batteries, the electricity grid, and wind and solar power – require critical raw materials (CRMs) to function.

As the demand for CRMs such as cobalt, copper and lithium increases, the supply chain faces risks from limited availability, concentrated supply, global competition, and environmental and social impacts. These can lead to supply disruptions, price volatility, trade dependencies and wider strategic risks for governments and industry.

However, the transition to net zero also presents opportunities, including through circular economy approaches that can reduce supply-chain risks. Robust, coherent and evidence-based CRM policy is needed to support Scotland’s transition.

This report assesses Scotland’s future CRM needs, supply-chain risks and opportunities for action.

Key findings

  • Global CRM demand is expected to outpace extraction, particularly for copper, lithium, nickel and rare earth elements. This may constrain Scotland’s net zero ambitions, as we aim to expand wind, solar, electric vehicles, hydrogen and other net zero technologies.
  • Scotland is highly exposed to global CRM supply-chain risks, with extraction and processing concentrated in a small number of countries, particularly China.
  • Geopolitical tensions, trade restrictions and price volatility could further disrupt supplies and increase the cost of delivering Scotland’s net zero transition.
  • Recycling alone will not meet near-term demand, while Scotland has limited infrastructure when it comes to recovery, recycling, reprocessing and remanufacturing.
  • Scotland has a strong foundation for improving the resilience of CRM supply chains, drawing on expertise in engineering, geology, mining, oil and gas and R&D, alongside existing net zero industries, port infrastructure and high ESG standards.
  • Circular economy approaches could also improve resilience by extending the life of technologies, increasing material recovery and recycling, and developing domestic reprocessing and remanufacturing capacity.
  • Three priorities for action emerge:
    • developing recycling, reprocessing and remanufacturing capability
    • improving data, traceability and material recovery
    • strengthening Scotland’s contribution to UK and international CRM policy and partnerships.

For further information, please read the report.

If you require the report in an alternative format, such as a Word document, please contact info@climatexchange.org.uk or 0131 651 4783. 

Photo by Andrew Dawes on Unsplash

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