On Thursday, the International Energy Agency hosted its first-ever international summit in Paris on diversifying critical minerals supply chains’ with nearly 50 different countries in attendance; including Indonesia, the US, and the EU, who all made opening addresses to the summit.
“Our global energy crisis has taken on a new dimension, which is the urgency of this clean energy transition,” said Jennifer M. Granholm, Secretary of Energy for the United States. “So today, I humbly suggest that we recommit ourselves to not just international cooperation, but also to creative thinking… When it comes to critical minerals, we have to first start by thinking creatively about what each of us can bring to the table.”
The summit convened not only energy and mining ministers from countries across the globe, but also business leaders, civil society representatives, and large mineral producers like BHP, Glencore, and Rio Tinto. The event comprised three sessions discussing innovation in technology, recycling, diversified mineral supplies, and ensuring sustainable and responsible supply chains.
The IEA has been mandated to deepen its work on critical minerals and has launched new initiatives to improve transparency and security, with plans to establish a new division dedicated to energy security and critical minerals to continue providing necessary market reviews and data on critical minerals.
The event also highlighted the need to decouple supply chains from China and Russia, who hold dominant footholds in mineral mining and production for other countries, with a strong uniform push towards incentivization of critical minerals production and diversification at home and with partners abroad.
“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,” commented IEA executive director Fatih Birol in a press release.
“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.”
Many countries have already taken the initiative to join hands in minerals partnerships, like the Mineral Security Partnership including 13 countries and the EU. The next phase of the IEA Voluntary Critical Mineral Security Programme will be announced at the 2024 Ministerial Meeting this coming February.
