I. Project Brief Info
Extractive industries for energy transition – interregional cooperation on critical mineral value chains
| Project Type | FEALAC-Wide Project | |
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| Implementing Commission | UN ECLAC and ESCAP | |
| Project Status | In Implementation | |
| Implementing Period | Dec. 2025 ~ Dec. 2028 | |
II. Executive Summary
| Content | The accelerating deployment of clean and low-emissions technologies is driving a sharp increase in demand for non-hydrocarbon mineral resources, commonly referred to as critical minerals. These technologies are significantly more mineral-intensive than their fossil fuel-based counterparts, with important implications for the extraction and processing of these resources — including concerns related to environmental sustainability, social acceptability, affordability of raw materials, and the security of supply chains. While the projected growth in demand for critical minerals presents substantial opportunities for resource-rich countries and businesses involved in the mining and mineral supply chains, it also raises complex challenges. The mining sector has a historically nuanced relationship with sustainable development. Countries endowed with critical minerals must address a wide range of economic, social, and environmental impacts associated with mining to ensure the sector contributes meaningfully to inclusive and sustainable development. These challenges and opportunities are particularly prominent in Asia and LAC regions, both of which possess vast reserves and well-established extractive sectors. In Asia, ESCAP member States collectively control: 30% of the world’s cobalt, copper, and lithium reserves; 41% of bauxite; 53% of graphite; 59% of nickel; 75% of rare earth elements, and 80% of lead. Australia alone accounts for nearly 40% of global lithium production. LAC countries hold: 46% of the world’s lithium reserves; 35% of copper; 28% of natural graphite; 23% of rare earths; 16% of bauxite-alumina, and 12% of nickel. As of 2024, the region contributed 38% of global copper production and one-third of global lithium production. In view of the above, there is an urgent need to address the strategic challenges and opportunities for the sustainable use of CRMs in both regions. Doing so is essential to support their transition to sustainable, low-carbon economies and position them as engines of inclusive and sustainable development worldwide. This project is also aligned with the work of the United Nations Secretary-General’s Panel on Critical Energy Transition Minerals, which in 2024 issued a set of Guiding Principles and Actionable Recommendations to ensure that critical mineral value chains advance sustainable development, equity, and justice. In particular, this initiative supports: Recommendation 1: Accelerate greater benefit-sharing, value addition, and economic diversification, by promoting strategies for local value addition and fair benefit distribution; and Recommendation 2: Traceability for accountability, through enhanced international cooperation, information sharing, and transparency. |
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III. Appendices
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