Achieving the green and digital transitions depends on the availability of critical minerals as key components in electronics, defence, renewable energy and digital technology, as well as advanced machinery. Critical mineral supply is failing to keep pace with the rapid growth in demand. Even with efforts to step up domestic exploration and production, the considerable lead time between discovery and production for new mining operations means that OECD countries, who are net importers of critical minerals, will continue to rely on exports from developing and emerging economies in the coming decades.

Rising demand for green and digital technologies in countries around the world, from OECD Members to emerging economies like China, India and Indonesia, means that countries at all stages of development have a role to play in reducing pressure on primary extraction, through recycling and by increasing the supply of secondary raw materials. Circular economy practices can also help reduce demand for materials by encouraging material substitution as well as designs and business models that extend the lifespan of products and achieve greater efficiency in material use in products.

Africa, Latin America and Southeast Asia have an opportunity to capitalise on the growing demand for critical minerals to turn their mineral wealth into long-standing economic benefits. With the right policy framework at different government levels and engagement mechanisms, critical mineral production has the potential to make these regions more dynamic, resilient and prosperous, including by providing local job opportunities, increasing community well-being, attracting investment and supporting social infrastructure.

Countries must put in place robust and sustainable legal and tax frameworks and overall governance with meaningful participation to ensure they do not recreate the negative environmental, social, economic and political outcomes that have been seen across producer countries and communities when a solely profit-driven approach has been taken to natural resource exploitation. 

Meeting the growing demand for critical minerals must not come at the expense of human rights, good governance, or the environment. Adherence to international standards for mineral extraction, alongside targeted support and co-operation through Official Development Assistance (ODA), can facilitate mining activities that promote inclusive growth while safeguarding well-being across diverse geopolitical contexts. It’s crucial that mining activities are aligned with the development goals of producer countries. Engaging with the private sector, including energy firms, mining companies, commodity traders and financiers can help foster sustainable mining practices.

The OECD is working with Member and non-Member countries through policy dialogue and analysis to try to ensure that minerals contribute to sustainable and resilient development. This inclusive process aims to collectively address trade-offs associated with the global expansion in mining and seek collaborative solutions for shared prosperity, guided by best practices. Expanding international standards for responsible and sustainable mining can enhance development outcomes for resource-rich countries and stimulate global dialogue to assess the sector’s impact on well-being.