New energy mineral resources the next big thing for world

Given that clean energy remains a general global trend in the quest for carbon neutrality, it is of great significance for a country to ensure the safe and reliable supply of mineral resources used for new energy applications.

Once carbon neutrality is realized the demand for new energy minerals is expected to increase greatly. Given that most of the new energy resources are non-renewable, unevenly distributed and highly concentrated in a few countries, relevant countries have begun to re-examine and evaluate their supply of new energy resources and formulate corresponding global strategies.

China is both a major producer and consumer of mineral resources, but there still exist serious structural problems in its supply, with new energy minerals being in seriously short supply. China is heavily dependent on foreign markets for lithium, nickel, cobalt and other minerals that are used to make electric vehicle batteries.

On the one hand, the supply chain of mineral resources is easily disturbed by trade policy restrictions, geopolitics and the political situation of producer countries. On the other, the pricing power of international mineral futures and the alliance of mineral companies are mostly in the hands of large Western companies, making the acquisition of mineral resources vulnerable to trade barriers, financial sanctions and other means. So, to ensure the safety of its mineral resources, China must ensure the long-term and stable supply of mineral resources, and then ensure that their prices do not drastically fluctuate.

China should also build an independent and controllable global resource supply chain. It should calculate its demand for new energy mineral resources and based on changed global supply and production situations and trade patterns, establish a regular supply risk monitoring, forecasting, early warning mechanism to dynamically assess supply and price risks.

It should improve the ability to secure new energy mineral resources, and accelerate the establishment of a management system for the recycling and utilization of secondary resources, and improve their efficiency of recycling and utilization. It should also encourage various parties to carry out risk assessment and improve its resources strategic reserve system in advance.

China should strengthen cooperation and exchanges with major global new energy mineral resources suppliers, strengthen the construction of large bases, and explore multi-channel supply sources. It should strengthen regional cooperation and global governance of energy and resources, to ensure it has new energy mineral resources.