G-7, G-20 Partners Need To Collaborate To Tackle Challenges Of Critical Minerals: Report 

A recent policy brief on critical minerals (CM) claimed that there was a need for a partnership between the members of the G-7 and G-20 on the vital issue. The report said that such a partnership was needed to tackle the main hurdles in the procurement and deployment of these rare resources, crucial to expedite the growth of clean technologies. 

The report tried to explore the main challenges that the G-7 countries are facing in their procurement and sustainable use of critical minerals. These critical minerals, whose deposits are found in selected countries across the globe, are used in several renewable energy sectors like solar, wind, electric vehicles, and battery technology. 

The report advocated for a joint platform between the two global platforms. “To achieve this, a joint platform with the G20 that includes important national and non-state stakeholders may be planned. Similar interests are already driving strategic partnerships…The platform should prioritize principles of fairness and equity and use the Sustainable Development Goals as an overarching framework to ensure social and environmental concerns are addressed in addition to economic concerns,” the report said. 

The report claimed that only a handful of countries currently dominate the market. Countries like the Democratic Republic of the Congo and Australia possess 70% of the global share of cobalt and 55% of lithium. At the same time, the People’s Republic of China (PRC) remains the top producer of about 18 specific CMs.

The report said there needs to be more investment, alternatives, and recycling problems. This is in addition to the environmental and global market supply value chain. 

It also said, “To further promote responsible sourcing of CMs, the G7, with the larger group of the G20, can support transparency and accountability measures in the supply chain. One way to do this is by implementing existing standards and guidelines such as Responsible Mining Assurance and the OECD’s Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas.”

The report also advocated the G-7 countries consider securing adequate supplies of CMs, strengthening the circular economy, addressing environmental factors, encouraging investments in the sector, and promoting research and development.  

The report said that to tackle these challenges, the G7 should boost domestic production, promote public–private partnerships, foster cooperation for knowledge-sharing among members, and build stronger trade agreements with source countries. The report said these steps could help strengthen the group’s resilience to potential CM supply chain challenges. 

Conventional definitions of critical minerals claim that it refer to all non-fuel mineral materials required for the energy transition, which have strategic and economic importance and are vulnerable to supply chain disruption.