Do policymakers and the public understand the real-world impacts of a halt to certain critical mineral exports from China? This question was debated by politicians and speakers at the SAFE Summit 2024: Solving the Global Power Puzzle event in Washington D.C. that I recently attended. Here I explore some of the main points of my speech, although you can also watch the full version.
Massive investment
A massive investment in mineral extraction is urgently needed to reduce the risk of crippling impacts to clean energy and defence if China and other BRICS (Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, and the United Arab Emirates) nations tighten their grip on Critical Raw Material exports. Norway, as an allied partner of the US and member of the Minerals Security Partnership, is collaborating on projects that will enhance the full clean energy value chain.
It’s our firm belief that Norge Mineraler’s world-class resource of three CRMs – phosphate, vanadium and titanium – will help end global dependence on fossil fuels and power a net zero future through green technologies.
Transformative shifts towards decarbonisation
The world is already experiencing transformative shifts and mineral-rich countries will play a pivotal role in creating the new global decarbonised economy. Solar panels, EV batteries and renewable energy storage capabilities, for example, all rely on CRMs to function. But it’s not just about clean energy; CRMs are also needed in aerospace and defence and for the digitalisation of societies, including the exponential growth in Artificial Intelligence.
US phosphate recognition
As well as being a key component of fertiliser for agriculture, phosphate is needed for lithium iron phosphate batteries (LFP) used as energy storage and for EV batteries. The phosphate supply chain is highly concentrated and dependent on a handful of countries like China, Russia and Morocco.
The importance of phosphate and its derivatives is recognised both in the US and the EU, where it is considered a Critical Raw Material – therefore given a priority for exploration and production. And it is welcome news that since my talk, a proposal has been introduced by US Senators to that effect – although I don’t claim that to be in light of my
Fragile & vulnerable
Norge Mineraler’s other two CRMs, vanadium and titanium, are also crucial for green technologies as well as in the steel, aerospace and defence industries. Like phosphate, supplies are at risk, with the concentration of vanadium of particular concern. More than 80% of global supplies come from China and Russia which places the supply chain in an extremely fragile and vulnerable position. Any disruption can cause dramatic price fluctuations.
Europe learned its lesson following the outbreak of the war in Ukraine and an example from 2008 illustrates the latter well. After reports of poor quality steel reinforcement bars – or rebars – being used in construction projects in China, the authorities introduced new rebar standards. The resulting increased domestic need for vanadium – as China corrected rebar production – pushed export prices up ten-fold.
The need for certification
Concern that the rush to increase production of Critical Raw Materials in western countries could come at the expense of the environment is something that we take seriously. Norge Mineraler will abide by world leading ESG standards for all our operations. We also firmly believe that to be competitive, the supply of future minerals will need to be certified, whether that is for environmental purposes or to benefit labour conditions, human rights or local communities.
Less cost, less complexity, less energy
Norge Mineraler’s ore is the biggest undeveloped igneous phosphate rock supply in the world. This means our CRMs have an exceptionally high purity level which in turn reduces the need for extensive processing and beneficiation. It also improves extraction efficiency.
By working together with the US and other CRM allies, I am confident we can mobilise our combined strengths in technological innovation and diversify mineral supply chains, so that the world can safely transition to clean energy – efficiently and sustainably.
