By: Mandy Meng Fang
There has been a notable resurgence in the use of export restrictions on critical minerals to implement green industrialization strategies by mineral-rich countries in the Global South, coinciding with an unprecedented demand for these materials. Critical materials are pivotal to adopting a wide range of green technologies, including solar photovoltaic (PV) plants, wind turbines, and electric vehicles (EVs), thereby accelerating the shift from a fossil fuel-based economy to a clean energy-powered one. The high geographical concentration of these critical materials in less advanced economies has presented them with an opportunity to capitalize on the escalating demand for such resources. Countries such as Indonesia, Zimbabwe, and Namibia have recently resorted to tight export controls on various critical materials in order to maximize their economic benefits in downstream segments and achieve green industrialization. The Global South’s renewed interest in restricting mineral exports has challenged the West-led liberal international economic order and invited counteractions, resulting in disputes brought to the World Trade Organization (WTO) and mineral-importing countries seeking potential trade remedies. Moreover, the growing competition for leading the clean energy value chains and industries among major and emerging economies is likely to pose new legal and geopolitical risks to mineral-rich countries in their attempts to move up the mineral value chains.
This Article employs a combined legal and policy analysis to reassess the feasibility and implications of export restrictions to facilitate the Global South’s green industrialization in a new era of disruption. It also highlights the challenges faced by the Global South in localizing the mineral value chains to reap additional development benefits and makes actionable recommendations to mitigate these issues.