Fourth Industrial Revolution
Description
Hannah Pilgrim:
"After
- the mechanization of production (1. Industrial Revolution),
- mass production due to
division of labor as well as the assembly line (2. Industrial Revolution) and
- the automatization of production (3. Industrial Revolution), the
Fourth Industrial Revolution – also known as the Internet of Things or Industry 4.0 – is defined by digitalization. While digitalization is a term used to describe changes in various fields (e. g. smart homes, smart city, smart grids, smart cars, etc.), Industry 4.0 refers to the digitalization of manufacturing processes, meaning that all steps of the production process will be connected."
(https://ak-rohstoffe.de/wp-content/uploads/2020/07/PS_FS_Digitalization.pdf)
Discussion
Overview of the Technologies Involved: Raw Materials Needed for the Fourth Industrial Revolution
Hannah Pilgrim:
What technologies are needed to connect the “things”, and what metals are processed?
Industry 4.0 or the Industry of Things do not
describe one type of technology but refer to a
combination of dif ferent knowledge-based information systems and technologies. Central to
Industry 4.0 are Cyber Physical Systems (CPS), as
they combine the physical production process
with the virtual world. Materials, devices and
other components in the production chain are
connected to the internet via small computers
which are equipped with sensors and actors.
A 2016 study by the German Mineral Resources Agency (DERA) examines the probable demand for raw materials caused by different future technologies.
According to the DERA study, in 2035, the examined 42 future technologies will require the quadruple of the present lithium production, a threefold increase in heavy rare earths and one and a half times increase in light rare earths and tantalum. It is furthermore estimated that, due to the increased use of electronics, the global demand for copper will grow between 231 and 341 percent until 2050.
In the following, we will introduce a few of the technologies examined by the DERA study that are essential for digitalized production processes:
- Sensors are a key technology. In the production
process, sensors can measure the position or temperature of machines, product components, etc. In the past years, the use of sensors sharply increased. Although it is difficult to make scientifically valid statements about the future demand of sensors, it is clear that metals are used for the production of sensors, such as tin, tungsten, tantalum and platinum.
- Radio Frequency IDentification-Tags (RFID-Tags)
are another type of sensors. RFID-Tags enable the localization of objects through radio waves. They are used in the supply chain management. Calculations indicate that, in 2035, up to 85 trillion RFID-Tags could be sold per year. Compared with 6.3 billion in 2014, this is a huge increase. Metals needed for the production of RFID-Tags are silver, copper and aluminum.
- The digitalization of production also depends on
flat screens and touch screens. They consist of indium tin oxide, which in turn mainly consists of indium oxide. According to the DERA study, in 2035, up to 34 percent of the worldwide indium production may be used solely for the production of displays. Industrial robots are machines capable of working autonomously in the production process.
They consist of a manipulator (robotic arm), control instrument and the effector (gripper or tool). Robots are increasingly equipped with different sensors. Research of the International Federation of Robotics shows that global sales in industrial robots has increased in the past years. According to the International Federation of Robotics, in 2020, more than three million robots will probably work in industrial production.
The metal-, plastic- and electronic industry in particular rely on automated production. Robots – which are also equipped with a number of sensors – primarily consist of steel, copper, tin and silicon.
- High-performance microchips are mainly used
for mobile phones and WLAN chips. However, they are now being integrated in more and more devices. Within the context of Industry 4.0, the extended use of wireless communications in spacious production facilities will certainly increase the quantity of chips needed. Compared with ‘traditional’ chips, high-performance microchips are smaller, more ef ficient and can also be used at high temperatures. They consist primarily of gallium."
(https://ak-rohstoffe.de/wp-content/uploads/2020/07/PS_FS_Digitalization.pdf)
Raw Materials Usage for Electric Mobility and Renewable Energies
Hannah Pilgrim:
"Besides the technologies used for the digitalization of the production process, it is necessary to look at new technologies for electricity generation and mobility. The widespread individual use of automobiles has devastating consequences for the environment. With its lithium-ion batteries, recharged with renewable energy, Electric Mobility seems to offer a solution: CO2-emissions and the consumption of fossil fuels may be reduced whilst the current mobility model can be maintained. However, compared to “old” engine technologies, electric motor technology needs the fourfold of copper and also larger quantities of other metals like cobalt, lithium and heavy and light rare earths. Additionally, a large part of lithium-ion batteries consists of graphite. Thus, with the production of electric cars, the material consumption by the automobile industry will certainly not decrease. In fact, the opposite is the case. The replacement of diesel and gasoline engines with electric cars leads to a deadlock. Instead, research and implementation of mobility concepts based on public transport, biking and shared vehicles must be supported.
To reach the 2.0 degrees, possibly even the 1.5 degrees goal as stated in the Paris Agreement, we have to phase out the exploitation and use of new fossil resources, which are mainly responsible for CO2 emissions. Generating power via renewable energy certainly is a welcome development. But specific devices such as permanent magnets for wind turbine generators or lithium-ion batteries for the storage of electricity in photovoltaic plants will in turn create specific raw material demands (aluminum, copper, indium, gallium, tellurium, heavy rare earths, lithium, graphite or nickel). Hence, the following still holds true: The most environmental friendly kilowatt hour is always the one which is not consumed at all."
(https://ak-rohstoffe.de/wp-content/uploads/2020/07/PS_FS_Digitalization.pdf)
The False promises of the Fourth Industrial Revolution
Hannah Pilgrim:
Dematerialization
According to research of the Global e-Sustainability Initiative (GeSI), a network of more than 40 leading companies from the information and communication sector, digitalized manufacturing can kill two birds with one stone: Firstly, it “creates significant economic benefits”, secondly, they assume a minimization of “environmental impact, natural resource use, and energy consumption”.
The strong belief in progress and improvement through technology must be examined critically. Despite promises of dematerialization, the global raw materials demand has increased constantly, and the needed raw materials and energy for the “future technologies” (e. g. RFID-Tags, chips, displays etc.) have not yet been taken into account.
Resource efficiency
In addition to promises of “dematerialization”, the increased efficiency in the use of raw materials and energy, but also the workforce is of ten emphasized in debates on the digitalization of production processes. For the businesses, ef ficiency primarily means cost savings. The mining supplier company MIRS (Mining and Heavy Industry Robotics) illustrates this in the following quote: “While mobile internet, internet of things, automation of knowledge and cloud technology are expected to dramatically increase mining assets productivity, advanced robotics are expected to replace human labor for low level tasks.”19 In this case, efficiency is at the expense of the few existing jobs in the extractive industry sector. With the loss of local job opportunities and the negative environmental and social impacts of mining, countries in the Global South continue to be the raw material supplier, rather than having any chance for value-adding activities.
The companies interviewed by PWC for a study on “Digital Factories” expect efficiency gains of 12 percentage in the next five years due to digitalized production. However, the scientifically proven rebound effect also applies for production. Savings in resource and energy intensity make products cheaper, and hence are eaten up by increased production and consumption.
Furthermore, it is not clear to what extent the needed energy and materials to produce sensors, displays and other smart devices as well as the power consumption for the rapidly rising data amount are factored in efficiency calculations. Digitalization will contribute to rising data amounts. This in turn requires more energy and undermines the political goal to reduce our energy consumption towards a global sustainable level.
Data security
The all-encompassing digitalization also raises questions about data security. Data protectionists are apprehensive of increasing connectivity between things, persons, and processes. The metaphor of ´glass human beings´ is becoming increasingly real. With the help of chips, sensors, and RFID-Tags, even more personal data can be transmitted.
With regard to extractive industries, questions of data security and hacker attacks are of ten connected to matters of safety in the workplace, environmental risks and human rights violations. The consequences of potentially hacked mines and smelters are tremendous: Hazardous substances could pollute the environment, work safety would no longer be guaranteed. So far, no reliable studies exist on this matter."
Directory
Hannah Pilgrim:
Alliances, networks and platforms: An international look at digitalization policies
The digitalization of production is a global trend. Hence, several global initiatives, alliances and platforms dedicated to the research and support of Industry 4.0 policies have come into existence.
Global
The Industrial Internet Consortium (IIC)
is an open membership organization founded in Massachusetts in 2014 by international companies like Cisco, General Electrics or Intel. It comprises more than 250 member worldwide, mainly global players from the electronic and communications industries. Furthermore, universities from Asia, Europe and North America joined the IIC to “accelerate the growth of the Industrial Internet by identifying, assembling and promoting best practices”. The IIC cooperates closely with the German Plattform Industrie 4.0 (see 3c. EU).
Industry of Things World (IoTW) and related event formats like IoTW USA or IoTW Asia want to bring together the “Industrial Internet of Things scene”. They portray themselves as an “international knowledge exchange platform”, with the aim of supporting each other and thereby increase their benefits from the global digital transformation. In September 2017, an event from IoTW took place in Berlin, Germany. More than 1,000 executives from business and technology companies as well as experts from science were invited. China (Made in China 2025) and Japan (Industrial Value Chain Initiative and Robot Revolution Initiative) are likewise preparing their industries for the digitalization.
OECD and G20
At the level of OECD, the “Committee on Digital Economy Policy” deals with topics like the digitalization of the economy and society, mobile communication and cyber security. The OECD is a key partner of the G20. Before and during the last summit in Hamburg, several meetings and conferences about the “Key Issues for Digital Transformation in the G20” were held. The “G20 Digital Economy Ministerial Declaration” presents the outcome of the digital ministers’ meeting. They agreed on a joint digitalization policy with a focus on “harnessing the potential of inclusive growth and employment”, “digitizing production for growth” and “strengthening trust in the digital world”. The increase in metals demand has not been addressed at the level of the OECD nor at recent meetings of the G20.
EU
At the level of the EU, the Commission/DG Connect deals primarily with digital issues. In April 2016, the Commission announced to support the digitalization of the European industry through national initiatives and increased investments.
Günther H. Oettinger, the former European Commissioner for Digital Economy and Society, emphasized the logic of economic competition. In order for the European industry to maintain its leading position in the global economy, digitalization processes must be supported. „Europe has a very competitive industrial base and is a global leader in important sectors. But Europe will only be able to maintain its leading role if the digitization of its industry is successful and reached fast. Our proposals aim to ensure that this happens. It requires a joint ef fort across Europe to attract the investments we need for growth in the digital economy.“ The European Commission is operating according to a logic of growth and progress that allows hardly any space for discussions about socio-ecological challenges caused by digitalization."
(https://ak-rohstoffe.de/wp-content/uploads/2020/07/PS_FS_Digitalization.pdf)
Source
* Report: The Dark Side of Digitalization: Will Industry 4.0 Create New Raw Materials Demands?. By Hannah Pilgrim. PowerShift, 2017.
URL = https://ak-rohstoffe.de/wp-content/uploads/2020/07/PS_FS_Digitalization.pdf
based on „Ressourcenfluch 4.0 – Die sozialen und ökologischen Auswirkungen von Industrie 4.0 auf den Rohstof fsektor“ (PowerShift 2017)
More information
* Article: Repudiating the Fourth Industrial Revolution Discourse: A New Episteme of Technological Progress. By Alexander Trauth-Goik. World Futures , The Journal of New Paradigm Research, Volume 77, 2021 - Issue 1
URL = https://www.tandfonline.com/doi/full/10.1080/02604027.2020.1788357
"The Fourth Industrial Revolution (4th IR) is a techno-infused discourse around which high-level discussions of the future have come to revolve. The vision depicted by the 4th IR is one of exponential technological change and convergence, a scene in which disruptive discoveries and their implementation occur simultaneously across the physical, digital and biological spheres. This article examines the development of the 4th IR and assesses the neoliberal logic behind it."