Protecting International Critical Mineral Supply Chains for Accelerated Energy Transition: A Tale of Two Countries

The ongoing energy transition necessitates substantial advancements in the critical mineral sector, as the development and deployment of low-carbon technologies heavily rely on these minerals. Achieving the ambitious target of limiting global warming to 1.5 degrees Celsius demands a synergistic effort encompassing critical mineral suppliers, manufacturers, and innovators. The concentration of production and processing of critical minerals, coupled with global political dynamics, has led to numerous de-risking initiatives. China's significant contribution to patents and established production facilities necessitates cooperation with China to achieve energy transition goals despite concerns about China's dominant position in the critical mineral market. This chapter demonstrates the potential alternative scenarios in critical minerals supply chains with a specific perspective from the collaboration between Australia and China applying a governance theory of global value chains. Australia is a major owner of critical mineral resources while China is a pivotal player in the production and innovation ecosystem. This chapter underscores the importance of international collaboration for the sustainable development and responsible management of critical minerals through a comprehensive analysis of existing literature, policy frameworks, and practical case studies.