NOVEMBER 4, 2025
By Paulina Fernandez, Chair of Mining Engineering and Mineral Economics, Montanuniversität Leoben, Michael Tost, Chair of Mining Engineering and Mineral Economics, Montanuniversität Leoben, Daniel Monfort Climent, French Geological Survey (BRGM) & Frank Melcher, Chair of Geology and Economic Geology, Montanuniversität Leoben
When you buy a smartphone, plug in an electric car, or store renewable energy in a home battery, do you know where the minerals inside come from?
Most of us do not. And that is a problem. Critical raw materials such as lithium, cobalt, graphite, and rare earth elements are essential for the ‘green transition’. Yet their origins are often invisible to consumers and even to manufacturers, hidden behind complex supply chains that span across continents. This lack of visibility creates difficulties to all the actors along the supply chain. For companies engaged in a sustainable sourcing process, they do not want to be associated with any environmental or social disruption, or risk reputation damage. Moreover, the climate crisis requires urgent action on altering the energy mix, and this needs public trust in technologies, and some of these have not been exposed to public scrutiny.
The European Union has put sourcing critical raw materials high on its agenda, with new regulations such as the Critical Raw Materials Act having the objective of diversifying critical minerals supply in Europe (more mines and refining in Europe, more recycling, less dependency on one single country), the Corporate Sustainability Due Diligence Directive which aims to foster responsible behavior of companies, and the Battery Regulation. In parallel, the Digital Product Passport will require companies to provide transparent, verifiable data on the materials used in their products. Outside Europe, similar initiatives have also emerged, for instance, the Dodd-Frank Act in the United States requires companies to disclose the use and origin of conflict minerals such as tin, tantalum, tungsten, and gold, encouraging greater transparency and accountability in global supply chains. All these efforts point in the right direction, but how can we actually make traceability work in practice?
The Traceability Challenge
Mineral supply chains are notoriously complex. A mineral may be mined in one country, refined in another, and transformed into components in a third, before finally becoming part of a product sold in stores. Along the way, materials are mixed, processed, and traded through countless intermediaries. This complexity makes it extremely difficult to answer seemingly simple questions:
- From which mine did this cobalt come?
- Were workers protected and paid fairly?
- Was the mining process aligned with environmental and social standards?
Illustration of the mineral supply chain, showing the stages from extraction (mining) through processing, refining, manufacturing, and assembly of the final product. The image emphasizes that traceability aims to ensure transparency throughout the entire chain so that when the product reaches the consumer, its origin, journey, and the social and environmental conditions under which it was produced are known and can be verified.
Photo credit: “Chain of custody”, Thania Nowaz, DMT
Today, many traceability efforts still rely on old school, paper-based system, which are vulnerable to fraud and costly to maintain. At the same time, consumer interest in transparency is growing. According to PwC’s 2024 Voice of the Consumer Survey, over 80% of consumers say they are willing to pay more for sustainably produced or sourced goods, with the average premium being around 9.7%.
For instance, establishing traceability in mineral supply chains requires digital systems capable of following each material as it moves through extraction, processing, and manufacturing. This often involves assigning a unique digital identifier to batches of ore or refined material, which is then recorded each time the material changes hands, from the mine to the smelter, to component producers, and finally to product assemblers. In theory, this creates an unbroken chain of custody. In practice, however, it demands that each actor in the chain collect, verify, and share consistent data, often across different platforms or incompatible databases. Beyond the technical hurdles, companies must agree on what information is shared, how to protect commercially sensitive data, and who bears the cost of maintaining the system. These organisational and trust-related challenges are often as complex as the technology itself.
Enter MaDiTraCe
MaDiTraCe (Material and Digital Traceability for the Certification of Critical Raw Materials) is a European research project funded under Horizon Europe. Its mission is simple to state but complex to achieve: create trustworthy ways to trace minerals across their entire journey, from the mine to the final product, and even into recycling.
The project brings together geologists, technologists, and industry experts to develop a “traceability toolbox” built on three pillars:
- Digital Traceability: Using blockchain and digital product passports to securely store and share certified information across supply chains.
- Material Fingerprinting: Applying advanced scientific techniques to read the “geological fingerprint” of a mineral, identifying its origin or processing history.
- Certification Systems: Expanding the CERA 4in1 standard, a sustainable and responsible standard scheme that covers the full supply chain, ensuring compliance with EU regulations and global sustainability expectations.
This combination makes MaDiTraCe unique: it does not rely on one technology alone but integrates digital, scientific, and governance solutions.
Why It Matters
For Consumers. Imagine scanning a QR code on your phone or laptop and instantly seeing where the minerals inside came from, with assurances that they were mined responsibly. Transparency empowers people to make informed choices and builds trust in green technologies.
For Companies. Manufacturers face increasing pressure from regulators and investors to prove their supply chains are sustainable. With MaDiTraCe, they gain practical tools to comply with upcoming EU requirements, such as the Corporate Sustainability Due Diligence Directive and the new Critical Raw Materials Act, while also protecting their reputation and market position.
For Producing Countries. Traceability is primarily about monitoring and preventing bad practices. It also provides an opportunity for mining regions that follow high standards to demonstrate their responsibility and gain recognition in global markets.
Looking Ahead
The route to operationalising traceability and certification is not without challenges. Aggregation points, where ores from multiple sources are mixed, remain difficult to trace. Ensuring low-cost, energy-efficient digital solutions is another barrier. And voluntary standards must align with other emerging regulations to avoid creating a patchwork of systems.
Minerals may be hidden inside our phones and batteries, but their story should not be invisible. Traceability is not just about ticking boxes for compliance, it is about building trust between producers, companies, and consumers. Not least, to create broad public awareness for the often devastating consequences of minerals’ extraction in mining regions.
By combining independent forensic tools with digital certification, MaDiTraCe demonstrates that reliable, transparent mineral supply chains are possible. Transparency in our mineral sourcing means transparency that carries through into our future. With projects like MaDiTraCe, we can make a step toward a green transition that is not only fast, but also fair.
Do you want to share your perspective on mineral traceability? As part of the MaDiTraCe project, we are conducting a survey on consumer views about transparency in mineral supply chains. You can contribute by taking part by clicking this link.
Contact:
Paulina Fernandez – paulina.fernandez-munoz@unileoben.ac.at
Michael Tost – michael.tost@unileoben.ac.at
Daniel Monfort Climent – d.monfortcliment@brgm.fr
Frank Melcher – frank.melcher@unileoben.ac.at
