{"id":77310,"date":"2023-05-09T04:53:44","date_gmt":"2023-05-09T04:53:44","guid":{"rendered":"https:\/\/enterpriseam.com\/climate\/2023\/05\/09\/friendshoring-critical-minerals-is-the-name-of-the-game\/"},"modified":"2023-05-09T04:53:44","modified_gmt":"2023-05-09T04:53:44","slug":"friendshoring-critical-minerals-is-the-name-of-the-game","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/climate\/2023\/05\/09\/friendshoring-critical-minerals-is-the-name-of-the-game\/","title":{"rendered":"Friendshoring critical minerals is the name of the game"},"content":{"rendered":"

<\/a> Friendshoring <\/strong>critical mineral production is possible, but\u2026: <\/strong>The US and key partners globally can significantly \u2018friendshore\u2019 the production of critical minerals, but this would require extraordinary technological and financial cooperation, Carnegie<\/a> writes, citing a study by the Net Zero Industrial Policy Lab at Johns Hopkins University. Such partnerships among democratic states could produce sufficient minerals to allow the world to reach a global warming limit of 1.5\u00b0C, but this would require an unprecedented build-out of the mining industry. The study also identified \u201clinchpin\u201d countries with large reserves of minerals, such as Indonesia, Peru, Brazil, and Turkey, with which the US should \u201cdouble down\u201d its partnership. \u201cThe key will be making sure that the governments of these countries see value for themselves in being part of a resilient supply-chain partnership,\u201d Carnegie says.<\/p>\n

The new trade buzzword: <\/strong>Friendshoring, or allyshoring, is a strategy where supply chains are rerouted to countries deemed low-risk or politically and economically risk-free to insulate global supply chains from external shocks or disruptions, according to the World Economic Forum<\/a>. The trade buzzword has mainly emerged following the pandemic and the Russian invasion of Ukraine, which strained global supply chains.<\/p>\n

Speaking of critical minerals: <\/strong>Fears that a copper scarcity will hamper the energy transition are unfounded, as aluminum can serve as a substitute \u201cfor almost all applications,\u201d according to a study by NEONresearch<\/a>. The paper says that aluminum can conduct electricity as well as copper and is 1.2k times more abundant. It also argues that the shift could be good for the environment, since aluminum emits less carbon in electricity production.<\/p>\n

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An open market for renewables in South Africa is proving to be a lifeline out of the<\/strong> energy crisis in the country<\/strong>, which has been grappling with ever-worsening blackouts since last year, Bloomberg<\/a> writes. The government is now opening a door for renewables, abandoning some of the previous constraints impeding the use of renewables. The country is now seeing a boom in the trade of solar panels and lithium-ion batteries. However, this transition could be at risk after South Africa's ruling African National Congress voiced support for plans to extend the lives of sclerotic coal-fired furnaces to address the power cuts. Such a move could put the USD 8.5 bn global effort for clean energy transition at jeopardy, according to the business newswire.<\/p>\n

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