The recent accession of new members to the BRICS association has significantly impacted the global reserves of rare-earth metals, with BRICS countries now accounting for 72% of these crucial resources. This development, highlighted by Evgeny Petrov, head of the Russian Federal Subsoil Resources Management Agency (Rosnedra), underscores the strategic importance of BRICS in the global mineral landscape.
The Importance of Rare-Earth Metals
Rare-earth metals are a group of 17 elements that are vital for various high-tech industries, including electronics, renewable energy, automotive, and defense. These metals are essential components in the production of smartphones, electric vehicles, wind turbines, and numerous other advanced technologies. As the world shifts towards a more technology-driven and sustainable future, the demand for rare-earth metals is expected to grow exponentially.
BRICS and Rare-Earth Dominance
The BRICS—comprising Brazil, Russia, India, China, and South Africa—has long been recognized for its significant natural resources. With the addition of new members, this association now holds a commanding 72% of the world’s rare-earth metal reserves. This substantial share positions BRICS as a key player in the global supply chain of these critical materials.
China, in particular, has been the dominant force in the rare-earth market, accounting for a major portion of global production and reserves. The inclusion of new BRICS members with significant rare-earth resources further strengthens the bloc’s dominance. For instance, Russia possesses vast deposits of rare-earth metals, and with the integration of other resource-rich nations, BRICS’s influence in this sector is unparalleled.
Strategic Implications
The consolidation of rare-earth reserves within BRICS has far-reaching strategic implications. Firstly, it enhances the bargaining power of BRICS countries in global markets, allowing them to exert greater control over the supply and pricing of these vital materials. This could lead to more favourable trade terms and increased geopolitical influence.
Secondly, the concentration of rare-earth resources within BRICS can foster greater collaboration and technological exchange among member countries. By pooling their expertise and resources, BRICS nations can develop more efficient extraction and processing techniques, reducing their reliance on external technologies and supply chains. This self-reliance is crucial for ensuring the security of supply in the face of potential trade disruptions or geopolitical tensions.
Economic and Environmental Benefits
Harnessing the vast rare-earth reserves within BRICS can also drive economic growth and development. The mining, processing, and export of these metals can generate significant revenue, create jobs, and stimulate local economies. Moreover, the increased availability of rare-earth metals can support the growth of high-tech industries within BRICS countries, fostering innovation and technological advancement.
Environmentally, BRICS countries have the opportunity to set new standards for sustainable mining practices. By adopting eco-friendly extraction and processing methods, BRICS can mitigate the environmental impact of rare-earth mining, which has historically been associated with significant ecological degradation. Collaborative efforts in research and development can lead to the adoption of cleaner technologies and more responsible resource management practices.
