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Could a Global Minerals Trust Help Speed Up the Energy Transition?

By Clara Hudson

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Today: A critical minerals trust could fuel green developers; the residential solar industry wants to slash costs; a sacred site is set to become a copper mine.

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Crushed ore sits at the Mountain Pass mine, operated by MP Materials, in 2019: (Joe Buglewicz/Bloomberg News)

Welcome back: As global competition to secure critical minerals is ramping up, the UN is proposing an international body to help countries play nice on green tech, Don Nico Forbes writes for WSJ Pro Sustainable Business.

But convincing governments to ditch national interest for international commitments is far from straightforward.

The “global minerals trust” would see nations that produce and consume critical minerals, and the companies that do so within them, jointly manage a stockpile of pooled commodities in an effort to avoid shortages, encourage recycling, support production in developing countries and prioritize minerals for sustainable developers.

Against an increasingly competitive geopolitical backdrop, researchers at the U.N. say a more collaborative and sustainable framework for organizing global resources would lead to a more reliable supply chain with less risk of shortages.

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Tell us what you think: Send us your feedback and suggestions at perry.cleveland-peck@wsj.com or reply to any newsletter. If you were forwarded this newsletter, you can sign up here.

 
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Ways AI Can Help Bolster Critical Infrastructure Resilience

AI can act as a powerful tool to help build resilience into critical infrastructure by enabling data-driven planning, real-time response, and accelerated recovery from natural disasters. Read More

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Residential Solar Industry Looks to Cut Costs as End to Tax Credits Looms

Single-family homes with rooftop solar panels in San Diego. (Bing Guan/Bloomberg News)

With President Trump’s tax law putting an early end to solar tax credits, the residential solar industry is now looking to lower prices, the WSJ’s Nicholas G. Miller writes.

The residential industry in particular is looking to slash sky-high sales and marketing costs, according to companies and analysts. Solar manufacturer Enphase said it would double down on SolarLead Factory, a lead-generation business it bought in 2022, and Solargraf, a design platform used in solar sales it bought in 2021, to streamline customer acquisition costs.

After the residential clean-energy tax credit, which covers 30% of a solar system’s cost, expires at the end of the year, total residential demand for solar will fall by 20%, Enphase has estimated.

Some costs are due to the U.S.’s complex permitting systems, but many come from the sales investments required to convince a homeowner to go solar in a country where solar-panel penetration is still in the low-single digits.

“The [solar] industry must drive down customer-acquisition and selling costs to remain competitive in a maturing market.” 

— Badrinarayanan Kothandaraman, chief executive at solar manufacturer Enphase
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In Battle to Save Sacred Land From Mining Giants, Apaches Hope for a Miracle

Members of San Carlos Apache Tribe, friends and supporters participate in a traditional dance at Oak Flat Campground near Superior, Arizona. (Rebecca Noble for WSJ)

A coalition of Native Americans, Christians and environmentalists face a narrowing legal fight to stop the development of a copper mine in Arizona, WSJ’s Jim Carlton reports.

The stunning area has been used as a spiritual refuge in the Western Apache religion for centuries, but its use as a site for tribal prayer and rituals may be nearing an end. After years of legal battles that ultimately reached the Supreme Court, plans made by two of the world’s most valuable mining companies to develop the area into a giant copper mine appear more likely to proceed.

Legal observers see few paths left to stop the mine’s development, which a federal report says will turn the area now on national forest land into a crater nearly 2 miles wide and up to 1,115 feet deep.

In 2021 the coalition filed a lawsuit challenging on religious grounds the constitutionality of a federal land transfer needed for the mining project. But the appeals process upheld the deal and in May the Supreme Court rejected the group’s plea to hear the case.

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The Big Number

$10,000

The price solar companies roughly pay to add one customer, according to TD Cowen analyst Jeff Osborne

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What We're Reading

 

  • Foxconn looks to build AI servers at former Lordstown EV factory (WSJ) 
     
  • E.P.A. moves to cancel $7 billion in grants for solar energy (NYT)
     
  • New York can’t meet its ambitious climate targets. Maybe the plan was doomed from the start (Inside Climate News)
     
  • France set to pay a record €9 billion in subsidies to renewables (Bloomberg)
     
  • How Florida quietly surpassed California in solar growth (CNBC)
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About Us

WSJ Pro Sustainable Business gives you an inside look at how companies are tackling sustainability. Send comments to bureau chief Perry Cleveland-Peck at perry.cleveland-peck@wsj.com and reporters Clara Hudson at clara.hudson@wsj.com and Yusuf Khan at yusuf.khan@wsj.com. Follow us on LinkedIn at wsjperry, clara-hudson and yusuf_khan.

 
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