Dialogue on Investing on Diversifying Critical Minerals Value Chains for Accelerating the Energy Transition

The growing energy transition and demand for raw materials in clean energy technologies require investment beyond extraction. It also needs diversification and value addition in midstream and downstream activities to ensure fair and just benefits for resource owners, predominantly in developing countries.

The dialogue will:

• Examine strategies to diversify the CETM supply chain, as the market is expected to tighten by the end of the decade, and enhance the critical energy transition minerals value chain in developing countries. This aims to meet the growing demand driven by clean energy technologies, ensuring inclusiveness and sustainability. Supporting CETM-producing developing countries to add value to their minerals is crucial for enabling them to break free from the constraints of commodity dependence and achieve long-term sustainable development. By focusing on upstream, midstream, and downstream diversification, while addressing environmental challenges, these countries can develop a more integrated and resilient minerals value chain that not only increases their share of the global market but also enhances local economic growth. Additionally, side-stream diversification – leveraging the by-products and associated industries of sustainable mining can further create new opportunities across various sectors. Through value addition and diversification, the entire value chain becomes more resilient and scalable, better equipped to meet global demand fluctuations.
• Underscore that sustainable finance is essential to developing the infrastructure and capacity needed to responsibly exploit, process, and add value to these minerals and develop related industries along the value chain. Investment is essential to promote this diversification, as it facilitates the development of infrastructure, technology, and skills. With these elements in place, resource rich countries can move beyond mere extraction and into the processing and manufacturing of value-added products, such as batteries and renewable energy components, within their borders. Participants will discuss the importance of creating financial mechanisms that support long-term investments in mining, processing, and industrial infrastructure in developing countries.
• Explore tailored investment approaches that consider the unique challenges of each country, particularly those with rich mineral resources but lacking the infrastructure and stable regulatory environments necessary to attract investment.