A gathering of 50 world leaders discussing critical minerals has released 6 key findings they believe are needed if the world is to meet its future demands for clean energy technology such as electric vehicles.
Hosted by the International Energy Agency (IEA), the first-of-its-kind summit discussed the future of critical minerals and involved countries from continents across the world brought together to investigate the future needs to progress the critical materials at the heart of key clean energy technologies.
The summit was called after the IEA was asked by governments around the world to make recommendations on options to diversify supplies of critical minerals and clean energy technology manufacturing.
Energy Security and Critical Minerals division
In response the IEA is creating a new Energy Security and Critical Minerals division within its secretariat dedicated to these issues.
“The level of over-concentration that we see in critical minerals markets today is unlike that for any other major commodity we have come to rely on in the modern world. History has shown us that failing to properly diversify supplies and trade routes of essential resources comes with profound risks,” said IEA executive director Fatih Birol.
“Locking in secure and sustainable supplies of critical minerals for the clean energy transition has quickly become a top priority for governments, companies and investors around the world. The IEA has been working on this issue for years and established a leadership role, as reflected by the broad and high-level participation in this summit. With many stakeholders now asking how well prepared they are for this new reality, the IEA is expanding and deepening our work to help countries around the world develop robust and resilient clean energy supply chains.”
Record demand
A recently released first annual IEA Critical Minerals Market Review found that record deployment of clean energy technologies is propelling huge demand for minerals such as lithium, cobalt, nickel and copper.
Creating strategies to meet this growing wave of demand was at the centre of discussions among participants at the IEA summit.
“Fostering inclusive dialogue must be at the forefront of the critical minerals agenda as we navigate this complex and multifaceted issue within the clean energy transition,” Dr Birol said.
“Through its analysis and data, it is the IEA’s mission to ensure that critical minerals become a symbol of international cooperation rather than resource anxiety.”
Six recommended actions
The summit’s six key recommendations focused on the secure, sustainable and reliable supplies of critical minerals were:
- Accelerate progress towards diversified minerals supplies. The delegates agreed that support countries’ climate and clean energy ambitions, it will be necessary to significantly increase supplies of many minerals and metals. They identified a need to accelerate progress towards diversified and sustainable supplies of critical minerals.
- Unlock the power of technology and recycling: Participants highlighted the importance of tapping the full potential of technology and recycling to alleviate potential strains on supply. The IEA is planning to undertake an in-depth study to examine effective approaches to recycling covering all potential sources such as e-waste, industry scrap, end-of-life batteries, wind turbines and permanent magnets.
- Promote transparency in markets: The participants emphasised the need to promote transparent markets that facilitate new investments by reinforcing due diligence and traceability practices.
- Enhance the availability of reliable information: The attendees noted that data is vital to ensuring a well-functioning market and to allow companies and policymakers to set priorities and address potential chokepoints.
- Create incentives for sustainable and responsible practices: Summit participants highlighted the importance of incentivising sustainable and responsible production of critical minerals such as rewarding environmental, social and governance (ESG) efforts and speeding up approvals of new facilities without loosening legal and regulatory protections.
- Foster international collaboration: A recurring theme throughout the summit was that demand growth for critical minerals cannot be solved by any one country or company. Strengthening efforts on international collaboration among governments, market participants, civil society and international organisations is crucial to meet these challenges in an inclusive manner.
