Critical minerals such as lithium, cobalt and nickel are becoming the “oil of the 21st century” as the scramble for precious metals deepens poverty and creates public health crises in some of the world’s most vulnerable communities, a report by the UN’s water thinktank has found.

The investigation by the United Nations University Institute for Water, Environment and Health (UNU-INWEH) concluded that the growing demand for lithium, cobalt and nickel used in batteries and microchips is draining water supplies, eroding agriculture and exposing communities to toxic heavy metals.

An estimated 456bn litres of water were used to extract 240,000 tonnes of lithium in 2024, the researchers found, with little of the financial benefit or technological advances from the green energy transition or AI boom reaching the affected communities.