Critical minerals supply chains: key trends in sector circularity and financing

Critical minerals supply chains are at a critical juncture. Demand for key minerals like lithium, cobalt, and rare earths is set to triple by 2030, and quadruple by 2040. However, supply gaps and geopolitical instability threaten to derail growth.

As global uncertainty and emerging regulations reshape the critical minerals landscape, it's clear that collaboration across the supply chain is needed to meet surging demand, while upholding high standards of social and environmental sustainability.

In line with our annual Critical Minerals Innovation Forum, this key briefing discusses the potential for circular economy practices in the critical minerals supply chain, focusing on how mining companies such as Vale Base Metals, can recover value from waste materials and develop sustainable business models.

The report highlights include:

• Circularity in mining: Focus on reusing resources rather than relying solely on recycling
• Mindset shift: How to transition from traditional linear models to circular business models
• Geopolitical risks: Increase in operational and reputational risks from political intability, restrictive trade policies, and single-point dependences
• Collaborative efforts: The importance of cross-sector dialogues to de-risk investments and accelerate the energy transition
• Financing challenges: Blended finance models and ESG-linked loans as emerging solutions compared to traditional financing models
• Standards and certifications: How frameworks can ensure ethical practices, environmental stewardship, and accountability
• Transparency and traceability: How technologies such as blockchain and digital twins can enable end-to-end visibility in supply chains, ensuring responsible sourcing and preventing greenwashing