A comprehensive plan to avert the crisis
TECHNOLOGY
A comprehensive plan to avert the crisis
BCG ’ s five priorities for immediate action :
1
Create Enabling Conditions : Governments should foster the development of new mines through fiscal incentives and streamlined permit processes . For example , Canada has set aside as much as $ 3bn to facilitate and support new mine applications and development .
2
Target Investments : Quasi-government and multilateral entities could provide investments , loans , or guarantees to new projects . “ These entities can be effective vehicles for funding these rare-earth mines .”
3
Improve Transparency : Public-private groups like France ’ s Observatory of Mineral Resources could provide valuable data for decision-making . “ By collaborating , members in a public-private group could monitor and chart both the production of critical-mineral projects at various stages of development and the downstream companies that may buy the elements .”
4
Forge Partnerships : Regional alliances and private partnerships can share the effort and risk involved in rare-earth sector growth . “ A multinational consortium could establish a mine in Australia , processing capabilities in Europe , and downstream production in the USA - with financing and output equally divided among the participants .”
5
Develop Recycling Programmes :
Governments should establish standards and incentives for recycling rare-earth elements . “ Recycling can increase the amount of rare earths available for manufacturing permanent magnets and create a new source of supply of these scarce commodities .”
44 October 2023