In this episode, we welcome Gracelin Baskaran, Director of the Project on Critical Mineral Security at the Center for Strategic and International Studies, to discuss the geopolitics and geo-economics of critical minerals. We discuss how China’s dominance in the sector can be addressed by building new relationships with countries in Africa and South America. But the benefits must not go in one direction. The opportunity in diversifying the critical mineral supply chain is more than addressing national and economic security considerations. There is a huge development opportunity. This requires building new relationships in producing countries, investing in their infrastructure, and processing capabilities. Western governments and western companies need to step up their engagement and build better relationships in the Global South.
Takeaways:
- China is not the only producer of critical minerals; resource-rich countries in Africa and South America offer opportunities for the United States and other advanced economies to diversify their supply chains.
- Responsible mining practices are crucial to minimise environmental damage and ensure a more mutually beneficial model of mining for resource-rich countries.
- Critical minerals are essential
for national economic and energy security, as they are used in defence applications, electronics, and energy technologies. - The West, including liberal democracies, needs to address the security and economic implications of relying on China for critical minerals.
- Partnerships with countries that have capital to deploy, such as Middle Eastern countries like Saudi Arabia, can help secure critical mineral supply.
- Geology and political and economic stability are important considerations when choosing mining jurisdictions.
- Financing development is crucial for resource-rich African countries to ensure better education, health, and standard of living.
- Critical minerals offer significant potential for Africa's economic development, but avoiding the resource curse is a challenge.
Adam Smith's Panmure House:
https://panmurehouse.org/
Gracelin Baskaran:
https://www.csis.org/people/gracelin-baskaran
https://twitter.com/GraceBaskaran
https://www.linkedin.com/in/gracelinbaskaran/
