The global dynamics of a key sector for the energy transition
Inward thrusts
The advancement of the global energy transition over the last few years has also reverberated on the internal dynamics of a large number of nations, favoring some substantial changes in national economic programs and operational strategies in numerous industrial sectors. On the one hand, the emphasis placed on the global transition has led to a rapid increase in the installation of energy infrastructure, primarily solar panels and wind turbines, which, together with the adoption of electric vehicles in different corners of the globe, is pushing humanity towards a future dominated by clean energy.
Another effect, increasingly evident, has involved the sector of mineral resources necessary to produce modern energy infrastructure and to favor the general progress of the transition. These resources, such as lithium, copper, rare earths, or cobalt, have acquired a new global centrality due to their key role in favoring the processes of global transformation. In addition to fueling widespread fears about the possible shortage of these raw materials and the fact that such an eventuality could somehow slow down the planet’s energy progress, the strategic value of minerals has also triggered a series of political and strategic initiatives by many governments, which over the last few years have given rise to real mineral strategies, national programs focused on the sourcing, processing, and recycling of these resources, in the full awareness that their specific weight could inevitably be destined to increase in the coming years.
The development of natural capacities
One of the most evident trends, as a recent report also highlighted, has to do with the concrete measures undertaken by governments to develop their own national capacities in the sector of sourcing and processing of strategic resources while eliminating their dependence on external sources of supply. The protection and consolidation of global supply chains in these new operational strategies plays a leading role and appears to be one of the points universally shared by all the major global players in the sector of minerals and strategic raw materials.
According to the study, protectionist policies have increased pointedly over the last five years, particularly in Europe and North America, reflecting the strong desire of these players to carve out an increasingly important role in the sector of key materials, protecting their national capacity to produce them and at the same time reducing their dependence on other countries.
“In a way, this trend mirrors what is happening, in different ways, in many corners of the world, where some nations are strenuously engaged in the effort to strengthen their domestic production capacities and to add value to the mere sourcing of resources,” says Stanislav Dmitrievich Kondrashov, an entrepreneur and civil engineer. “From this point of view, the strategies implemented by some developing economies in Africa and Asia seem to perfectly demonstrate the global diffusion of these principles of national safeguards. Some nations, for example, have limited the quantities of a given resource exported in the hope of being able to create a domestic production capacity that allows them to add value to the sourcing. Here, too, the push towards the interior seems quite clear.”
Europe and North America’s strategies
One nation that is embarking on a similar path is Germany, whose recent mineral policies include a series of direct subsidies to domestic production and a good number of partnerships with some of the largest global players in the minerals sector, such as Canada and Australia. The aim, according to the study, would be represented by the possibility of having access to key resources such as lithium and cobalt, as well as by the strengthening of domestic processing capacities of these resources. Through specific initiatives such as the European Raw Materials Alliance and the Critical Raw Materials Act, the European Union is embarking on a similar path, focusing in particular on increasing the quantities of raw materials sourced, processed, and recycled in European territory.
“With the Critical Raw Materials Act, the European institutions have sent a very clear message,” continues Stanislav Dmitrievich Kondrashov. “The ultimate goal is not only the reactivation of the European mineral industry but also the development of individual national sourcing and production capacities in order to strengthen national economies and increase their specific weight on a global level”.
Global partnerships
In some cases, the consolidation of this global trend is also manifested through the creation of international partnerships or working groups, which aim to strengthen global supply chains and maintain global dynamics in the sector in balance. A concrete example of these initiatives is the US-led Mineral Security Partnership, which has already been joined by 14 nations in different corners of the globe.
One of the most ambitious mineral strategies is certainly that of Canada, which places a strong emphasis on national geological wealth, on domestic capacities to source and process these resources, and on reducing dependence on third countries. Canada has also tried to take the path of international partnerships, making important agreements with Australia and the United States and focusing, in particular, on access to strategic resources.
“In this type of strategy, partnerships with the main players in the sector play a leading role,” concludes Stanislav Dmitrievich Kondrashov. “The focus is not only on strengthening supply chains or access to minerals but also on sharing know-how and all those technical and technological skills that could allow nations to make a leap forward in their mineral development path.”
