The urgent need to accelerate the clean energy transition has driven global demand for critical minerals. According to IEA and PwC data, investments in critical minerals surged significantly in 2021 and 2022, with a notable rise in exploration spending, mining mergers, and venture capital, particularly in lithium exploration and startup funding.

Resource-rich and resource-seeking countries in Asia and the Pacific can partner to develop resilient and responsible critical mineral and clean energy technology supply chains for a clean energy future. To capitalize on the net-zero transition and create substantial employment, regional cooperation, and integration of critical mineral production with global clean energy supply chains are essential, alongside improvements in trade, investment, infrastructure connectivity, and human capital.

Building exploration, mining, and processing capacities are prerequisites for integrating mineral-rich developing member economies (DMEs) into global supply chains for clean energy technologies. Many DMEs face challenges in building mining and related sector capacity due to a lack of geological surveys, incoherent policies, weak legal and regulatory frameworks, opaque licensing and taxation regulations, and limited institutional capacity. 

Some DMEs are well-positioned to strengthen their roles in global value chains through industry diversification and foster social and economic development. Developing midstream and downstream capabilities can help avoid the resource curse and support a just transition.

National green clusters or net-zero industrial parks can help integrate the mineral supply chain with the regional value chain in the clean energy transition. Initiatives like the “Transitioning Industrial Clusters Towards Net Zero” by the World Economic Forum, Accenture, and the Electric Power Research Institute aim to create such parks. These parks support industries in reducing carbon emissions while sharing risks, infrastructure, and natural resources. By mobilizing finance, promoting knowledge sharing, and strengthening innovation, industrial clusters can accelerate their net-zero targets and implementation strategies.

Economic corridor development can strengthen national and regional industrial clusters. These programs need strong policy support to improve infrastructure for transport, energy, and digital connectivity; and to develop industrial clusters, cross-border production networks, and a business-enabling environment. This approach can increase investment attractiveness across critical minerals and clean energy manufacturing supply chains.

Government policies and incentives that encourage EV manufacturing, infrastructure development, R&D investment, and skills and education are critical for the growth of clean energy manufacturing industries. In ASEAN, government support and tax incentives for EV manufacturers and consumers have promoted the industry. As a result, ASEAN economies have attracted investor interest across the EV supply chain.

Global partnerships and regional cooperation are vital to unlocking investment potential. Multinational companies are investing heavily throughout clean energy manufacturing supply chains. Once fully implemented, the Regional Comprehensive Economic Partnership can further expand regional supply chains for critical minerals and clean energy manufacturing by reducing tariff and nontariff barriers and strengthening trade institutions.