The new geopolitics of mining

<new geopolitics of mining>

This week has seen two major elections make headlines. In Brazil, incumbent President Luiz Inácio Lula da Silva triumphed over his far-right opponent Flávio Bolsonaro. Meanwhile, in Serbia, a student-led opposition ousted the 14-year incumbent Aleksandar Vučić. However, the real challenge for these new administrations lies ahead.

Both countries will find themselves entangled in a global race for critical minerals and metals. These essential resources are crucial for constructing modern infrastructure, deploying advanced technologies, and pursuing decarbonization. They serve as vital inputs for electricity grids, wind turbines, solar panels, batteries, electric vehicles, and energy storage systems.

Brazil is a significant player in the global market for critical minerals. It possesses the world's second-largest reserve of rare earths, after China, with an estimated 21 million tons (Mt). Meanwhile, Serbia holds promising reserves of coal, lithium, copper, gold, and other metals.

Despite these resources, global supplies of critical minerals and metals are currently insufficient to meet the escalating demand. For instance, BloombergNEF has highlighted this shortage in its recent reports. The new governments in Brazil and Serbia will need to navigate this geopolitical landscape to ensure a steady supply of these vital resources for their economic development and environmental goals.