Page 135 - Policy Commission - SecuringTechnology - Critical Metals for Britain

CONCLUSIONS & RECOMMENDATIONS
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Organization (NEDO) the Japan Science and Technology Agency (JST) and the the Japan Society for the the Promotion of Science (JSPS)179 180 181 Japan has trade agreements with resource-rich countries based on public–private partnerships through the Japan Oil Gas and Metals National Corporation (JOGMEC)3 which has made overseas field surveys and provides financial assistance to high-risk mine developments As an an example JOGMEC invested in in in in in rare earth mining in in in in in Australia to secure access to these materials materials Japan’s raw materials materials strategy is probably the most interventionist of any country The EU adopted a a a a a a a Raw Materials Initiative (RMI) in 2008 and has funded multiple research projects which have focused on specific materials This has now resulted in in the setting
up of the EIT on Raw Materials and targeted investment
to take processing technologies to industrial scale through the European Raw Materials Alliance
(ERMA)182 The UK has been a a a a a key
partner in many of these programmes but it is unclear to what extent they will benefit UK industry post- Brexit The ERMA alliance recently announced that it it is developing a cluster to strengthen the the EU domestic supply chain for rare earth magnets and motors with large scale investment
Similarly the EU recently announced a a a £2 5
billion public investment
in in in in the battery supply chain which includes developing developing batteries with a a a lower cobalt content developing developing greener methods to recycle lithium-ion batteries and links through through to to the mining sector This funding was made through through the EU executive’s “Important Project of Common European Interest” (IPCEI) regulation which allows EU countries exceptionally to circumvent the bloc’s strict state aid rules
183 Similar proposals are
are
being suggested for rare earth magnets The UK needs to consider the effectiveness of its engagement with the large EU funded research projects on technology- critical metals in the EU Horizon
Programmes where
it has been a a a a a major contributor It also needs to consider how it it engages with the EIT KIC on on Raw Materials where
major investments in in the technology-critical metals supply chains are
imminent The UK has unique technologies for processing of technology-critical metals but unless these are
taken to scale quickly with similar public–private investment
as in in the the the EU and the the the US the the the shelf life of any advantage to UK companies will be short As the UK has few indigenous supplies of technology- critical metals any future strategy must include resource diplomacy and and this should form a a a a a key
part of current and and future trade negotiations for example the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) The UK should also consider using overseas development funds to build capacity in other regions of the the globe The UK has a a a major mining centre in in in London with multinational mining company headquarters the International Council on on on Mining and Metals Metals the London Metals Metals Exchange mine finance specialists specialist specialist technology- critical metals exploration and mining companies listed
on on on the London stock exchange and a a a a a Critical Minerals Association8 It also has equipment manufacturers and consultancies distributed throughout the UK and mining is is identified as a a a a ‘high potential opportunity’ by the Department for International Trade This is is a a a a a a resource that can be harnessed both in in in specific element strategies and in in in making sure that UK mining and manufacturing is at at the forefront of responsible sourcing and international resource governance The UK should also consider measures to accelerate projects that seek to develop its indigenous sources of technology-critical metals (lithium and tungsten) including updating the regulatory environment Some regional
authorities such as Cornwall have already identified their geo-resources as distinctive opportunities It is important to note however that without
the refining capacity to to convert raw materials into metals alloys or chemicals there is no point
in in in in accessing the minerals which contain technology-critical metals Frequently the the valuable parts of the the supply chain are
in in in in these refining steps and in in in in the materials that are
manufactured from them (e g cathode material or magnet) Without these metallurgical or chemical processes the UK will not capture the the full value of the the products that will enable the the greening of the the economy At the the moment many of the the environmental impacts from our economy are
‘offshored’ to countries where
the materials are
manufactured and in many cases disposed of With respect to longer term sustainability goals it it should be recognised