A coalition of 12 countries led by the United States, along with the European Union (EU), is working to identify and develop significant projects related to critical minerals by the end of this year. The goal is to reduce China’s dominant position in the production of raw materials necessary for green technologies.
The Mineral Security Partnership, established by the US in June of last year, has compiled a list of approximately 15 projects out of 200 potential options. Jose Fernandez, the US under-secretary for economic growth, energy, and the environment, confirmed this after visiting several European countries.
“We are hopeful that we will be able to announce a few major projects by the end of the year,” Fernandez stated. The shortlist includes projects related to mining, processing, and recycling of critical minerals, and it encompasses diverse geographical locations. Africa, Europe, Latin America, and Asia are all represented in the list.
Fernandez stressed that China’s control over the critical minerals supply chain poses a vulnerability for other countries. As the demand for minerals like lithium (used in batteries) increases due to efforts to reduce energy dependence and greenhouse gas emissions, this vulnerability becomes more pronounced.
“If we succeed with these projects, we can begin to address and mitigate this vulnerability,” Fernandez added.
Fernandez emphasized that the partnership is not about excluding any country or monopolizing supplies. Instead, its focus is on diversifying supply chains.
According to a report from the International Energy Agency, China currently processes 50-70% of lithium and cobalt, as well as nearly 90% of rare-earth elements. Chinese companies have made significant investments in countries like Australia, Chile, the Democratic Republic of Congo, and Indonesia.
In April, US national security adviser Jake Sullivan warned that clean-energy supply chains could be “weaponized” similar to how oil and gas have been used in the past. Fernandez noted that some countries joined the partnership because they had already been victims of mineral weaponization. Australia, Japan, the UK, Germany, France, Korea, Canada, and the EU are among the members of the partnership.
A report from the OECD revealed that China has been expanding export restrictions on critical minerals, placing it at the forefront of such measures. The number of restrictions on materials like lithium, cobalt, and manganese for electric cars and renewable energy increased ninefold between 2009 and 2020, according to the research.
Fernandez stated that the minerals partnership is focused on higher environmental, social, and governance standards. This is in response to concerns about issues such as child labor and environmental damage caused by mining activities.
“Our bet is that if we offer an alternative that adheres to the highest environmental principles and engages with local communities, without forcing producing countries to choose between economic growth and environmental degradation, they will choose to work with us. We are currently testing this hypothesis,” Fernandez explained.
Despite growing interest in extracting battery metals from the ocean floor, none of the shortlisted projects involve deep-sea mining. Norway, for instance, is preparing plans to conduct deep-sea mining, but the US is taking a cautious approach until further studies on its effects are conducted.
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