Asean, China, Japan and South Korea hold ‘transformative’ critical minerals opportunity
Director of Asean+3 Macroeconomic Research Office says some Southeast Asian economies have notable reserves
Southeast Asian economies, along with China, Japan and South Korea, have a “transformative” opportunity to enter the world’s critical mineral supply chain, said Yasuto Watanabe, director of the Asean+3 Macroeconomic Research Office (AMRO).
Critical minerals – essential raw materials for the production of hi-tech gadgets, cars and aerospace equipment – will make the 11-member Association of Southeast Asian Nations’ (Asean) supply chain “more resilient and sustainable”, said Watanabe, who also serves as AMRO’s CEO.
The office was set up by the finance ministers of the Asean member states and the “plus three” – China, Japan and South Korea – following an agreement in 2009.
“Several member economies possess notable reserves and are actively exploring ways to integrate more deeply into the fast-growing clean-technology and advanced-manufacturing ecosystems,” he told the Post on Wednesday.
“Viewed through an ‘Asean plus three’ lens, the opportunity is transformative,” he said, with the Southeast Asian economies contributing resources and their “strategic location” to the critical minerals supply chain, and the other economies offering capital and technology.
The region must overcome … huge upfront costs in early-stage exploration
The role of critical minerals in global supply chains received widespread attention this year when China – which accounts for about 70 per cent of global rare earth mining and 90 per cent of processing output, according to the Centre for Strategic and International Studies think tank – expanded the scope of its export controls on the materials.