Rewiring energy nexus: Mapping industrial hubs of the future

While the energy-minerals-water nexus, and the vulnerabilities therein, define global industrial strategy, understanding dependencies reveal sustainable industrial hubs, Karin Goettlich and Eva-Maria Pusch tell OGN

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ENERGY systems, critical minerals, and water resources — the three essential foundations of industrial development — are converging in ways that will reshape global competitiveness and the geography of industrial growth.

The future of energy will not be defined by a single transition, but by diversification.

The next decade will be determined by how intelligently nations and industries manage these interdependencies.

Energy diversification requires moving beyond linear thinking and recognising that the resilience of one system depends on the stability of all three.

FROM TRANSITION TO DIVERSIFICATION

For much of the past decade, the phrase energy transition has dominated discussions in boardrooms and policy forums.

It evokes a linear shift from fossil fuels to renewables. In reality, the global system is evolving in parallel: Oil, gas, renewables, hydrogen, and new fuels will coexist; each influenced by local geography, water availability, mineral access, and industrial demand.

Energy diversification is, therefore, less about replacement and more about integration. It is about aligning resource availability with policy and technology to ensure flexibility and long-term resilience.

Critical minerals such as lithium, nickel, and rare earths, alongside reliable water and power, will determine where industrial value chains can expand.

Mining requires vast energy and water; desalination demands power; and renewable technologies depend on mineral inputs. None can operate in isolation.

The interdependence of these systems is creating new industrial logic. Nations that invest in diversification rather than substitution are finding themselves better positioned to weather volatility, whether driven by commodity prices, trade disruptions, or shifting climate conditions.

THE TRIPLE NEXUS: ENERGY, MINERALS & WATER