Critical minerals

Critical minerals have become increasingly important to the global economy due to their central role in the energy transition and their strategic significance for industries such as defence, aerospace, electronics and digital technologies. Demand for minerals including copper, cobalt, lithium, nickel, graphite and rare earth elements is growing rapidly, driven by their essential use in renewable energy systems, electric vehicles, energy storage technologies, electrification and decarbonization efforts. As a result, securing reliable and sustainable supplies of these minerals has emerged as a key economic, industrial and energy security priority worldwide.

Critical mineral supply chains are also pivotal to creating opportunities for job creation, economic diversification and environmental progress. At the same time, they present significant governance, social and environmental challenges.

The growing demand for critical minerals can support structural transformation by promoting higher value-added activities beyond extraction, diversifying economies and expanding employment opportunities. Notwithstanding this potential, expansion of new sectors can also amplify decent work risks, especially in mineral extraction and lower tiers of supply chains. These risks include unsafe and unhealthy working environments, poor working conditions linked to weak regulatory enforcement and informality, and persistent barriers to gender equality and social inclusion.

Looking ahead, ensuring respect for labour rights and fundamental principles and rights at work, promoting employment, job creation and skills development, strengthening governance and labour market institutions, and protecting workers through social dialogue, gender equality, non-discrimination and community engagement will be essential to ensuring that critical mineral supply chains contribute to decent work and sustainable development.

In this context, the just transition framework provides a valuable compass, helping to ensure that the benefits of the sector are shared equitably across workers, communities and economies.

Sectoral Policies (SECTOR)

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