Abstract
The global demand for critical minerals required in clean energy transition technologies faces challenges due to supply chain disruptions, geopolitical tensions, and environmental costs. The concentration of mineral processing, refining, and manufacturing capacities within specific geographies poses risks, prompting governance initiatives like the EU’s Critical Raw Materials Act and the US’s ‘Securing a Made in America Supply Chain for Critical Minerals’ Act, among others. However, increasing domestic supply within the Group of Seven (G7) advanced economies is costly and time-consuming in permitting approvals and setting up greenfield processing and refining facilities. This policy brief argues that the G7 can leverage its existing economic and technological heft to align market forces to better address the issue of critical minerals availability and supply chain restructuring through increased commercial collaborations and forging complementary and cooperative arrangements within the existing G7 frameworks. Moreover, creating a strategic reserve would reduce concerns about supply disruption, allowing nations to leave more room for market forces.
