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techUK: UK CRM Strategy Overview & Next Steps

  1. © Assent 2023 / assent.com UK Critical Mineral Strategy: Overview and Next Steps. Presented at techUK: UK approach to Critical Minerals (Webinar), Thursday 23rd March 2023. Presented by: Eur Ing. Raj Takhar, MSc, CEng, PhD, Regulatory & Sustainability Expert. Email: Raj.Takhar@assent.com.
  2. © Assent 2023 / assent.com Agenda – 23rd March 2023 About Me 1. Introduction. 2. UK CRM Strategy (2022) 3. UK CRM Refresh (2023) 4. Conclusions 5. Q&A.
  3. © Assent 2023 / assent.com Acronyms Acronym Meaning AI Artificial Intelligence BGS British Geographical Survey CMIC Critical Materials Intelligence Centre CRM Critical Raw Material / Mineral EITI Extractive Industries Transparency Initiate EOL End-Of-Life ERMA European Raw Materials Alliance. ESG Environmental, Social and corporate Governance EU European Union EU CRMA EU Critical Raw Materials Act (2023) Proposal EU MS EU Member State EV Electric Vehicle GHG GreenHouse Gas GPP Green Public Procurement IAEA International Atomic Energy Agency. IEA International Energy Agency Innovate UK CLIMATES Innovate UK Circular Materials Supply Chain program KIAT Korea Institute for Advancement of Technology KETEP Korean Energy Technology Evaluation and Planning LME London Metal Exchange ML Machine Learning PGM Platinum Group Metals R&D Research and Development RD&D Research, Development and Distribution REE Rare Earth Elements, may be further broken down as: HREE – Heavy REEs, or ( LREE – Light REEs RMI Raw Materials Initiative SCMA Sustainable Critical Minerals Alliance UK United Kingdom UKIB UK Infrastructure Bank. Acronym Meaning UK ATF UK Automotive Transformation Fund. UK BEIS UK Department for Business, Energy and Industrial Strategy UK BEIS CMEC BEIS Critical Minerals Expert Committee UK BEIS CMIC UK Critical Minerals Intelligence Centre UK CEIF UK Clean Energy Innovation Facility UK CE-Hub UK Circular Economy Hub UK DEFRA UK Department for Environment, Food and Rural Affairs. UK DIT UK Department for International Trade UK FCDO UK Foreign Commonwealth & Development Office UK HMRC UK His Majesty’s Revenue & Customs UK ICF UK International Climate Finance UK IETF UK Industrial Energy Transformation Fund UK Met4Tech UK Circular Economy Centre for Technology Metals UK MoD UK Ministry of Defence UK ODA UK Official Development Assistance UK ONS UK Office for National Statistics UK ONS-IDS UK ONS Integrated Data Services UK POST UK Parliamentary Office of Science and Technology UKRI UK Research and Innovation UKRI NICER UKRI National Interdisciplinary Circular Economy Research UN United Nations UN SDG UN Sustainable Development Goal US United States USGS US Geological Survey. US IRA US Inflation Reduction Act (2022) US MFN US Most Favored Nation US NRC US Nuclear Regulatory Commission.
  4. © Assent 2023 / assent.com 4 About Me
  5. © Assent 2022 / assent.com Raj Takhar About Me Regulatory & Sustainability Expert: Product Sustainability Assent Inc. ❏ Education: MSc, PhD. ❏ Professional: Chartered Engineer, European Chartered Engineer. ❏ Doctoral Research: ‘The effect of chemical regulations on the Aerospace and Defence sector’. ❏ Standards: IPC, BSi, ASD, CENELEC, ISO. ❏ Trade Associations: IPC, Digital Europe, IET. ❏ Stakeholder Groups: (numerous workshops related to updates to EU REACH), SCIP IT User Group, UK REACH (Several Stakeholders) group. ❏ Contact: ❏ Raj.Takhar@assent.com. ❏ https://www.linkedin.com/in/eur-ing-raj-takhar- msc-ceng-phd-4791134/
  6. © Assent 2023 / assent.com 6 1 Introduction
  7. © Assent 2023 / assent.com Introduction: Why does industry exist? ▸ Companies exist to generate some form of economic gain for their stakeholders, by ingesting inputs (materials, labour) to produce outputs (products, services) that are sold for a profit to consumers. ▸ Marketplaces and product prices work on the laws of supply and demand, the availability of products vs a consumer's willingness to pay a sum of money. ▸ Common trait of modern industry ‘to remain competitive in the marketplace, we need to purchase raw materials in large volumes, mass produce products to obtain economies of scale, to enable us to achieve lower product prices’ ▸ 1987 UN ’Our Common Future’(aka Brundtland Report) highlighted key issues with mass production, leading to the depletion of natural resources, increasing climate change and volatility issues. A quick look back in time …
  8. © Assent 2023 / assent.com Introduction: Critical Raw Materials / Minerals (CRM) ▸ Material is viewed as being critical if it: a) Contains essential properties that cannot be provided by other materials, or, b) Is experiencing risks related to the security of supply, based on: o Levels of competing demand from different companies ingesting the material as an input to produce products. o The amount of the material available on the open marketplace. o Material country of origin, which may be concentrated to a specific region, potentially susceptible to geopolitical tensions (price fixing, limiting distribution to certain countries, etc.). ▸ Many CRMs are likely to be produced in small volumes or produced as by-product of other mining activities. What are they? SOURCE: https://ec.europa.eu/docsroom/documents/10010/attachments/1/translations/en/renditions/pdf
  9. © Assent 2023 / assent.com Introduction: The CRM Value Chain (high-level) Activities to uncover potential new CRM deposits, for future extraction. CRM Mining and extraction activities. Extracted CRMs (minerals, ores, concentrates). Processed into raw materials (metals, oxides, alloys, powders). Raw materials containing CRMs. Formed into semi-finished or finished products. Products are then sold to either: (i) end consumers, or; (ii) other actors in the value chain within own products End consumer use. May entail sending products back to the product manufacturer for maintenance and report activities Products enter EOL state. EOL products then collected / transmitted into waste streams. Waste streams operators may then undertake Repair, Refurbishment, Repurposing or Recycling activities. Recycling activities result in secondary raw material creation.
  10. © Assent 2023 / assent.com Introduction: The Global CRM Marketplace (i) ▸ Prior to the late 1980’s: ▹ US was one of the leading REE producers. US REEs could at this point move freely without detailed being managed by extensive rules. ▹ 1980 US NRC and IAEA changed the definition for ‘Source Materials’ which could potentially be used to make nuclear weapons. US REEs now required extensive rules applied to them. US and other nations in IAEA were trying to limit the use of materials which could potentially be used to make nuclear weapons. ▹ China was not a signatory to IAEA, and therefore it was able to trade its REEs freely. A new world order, pandemic, Brexit, challenges, threats and embracing change …
  11. © Assent 2023 / assent.com Introduction: The Global CRM Marketplace (ii) ▸ Late 1980s to the early 2000’s: ▹ 1989 to 1998 US granted China MFN status, enabling further control of US REE marketplace. ▹ China then began to dominate global supply chains for several CRMs. China was able to mass extract, process and refine CRMs at significantly lower costs and prices than their western CRM counterparts, who in turn stopped producing CRMs. ▹ During this period , there was unprecedented amount consumer demand for new technologies such as LCD tv’s, satellite / cable tv boxes, mobile phones, tablets, smart phones, etc. All these new products consumed ever increasing amounts of CRMs particularly REEs. ▹ Since the late 1980s, China has maintained its dominant position within the global CRM marketplace. However, it has often been accused of manipulating the price of REEs by controlling amounts of REEs being made freely available. A new world order, pandemic, Brexit, challenges, threats and embracing change …
  12. © Assent 2023 / assent.com Introduction: The Global CRM Marketplace (iii) ▸ Early 2000’s to the end of 2019: ▹ China began to attract more and more western companies to outsource manufacturing operations to local lower cost companies in China. Many large global companies followed each other towards China, in order to keep costs down and remain competitive. ▹ Since 2009 China has been one of the leading exporting countries in the world. The world has since relied on more and more on products that originate or contain significant content from China. ▹ As part of the EU, the UK did play a role in EU CRM related activities: (i) BGS performed a key role, supporting the creation and maintenance of the early EU CRM lists, (ii) UK implemented a product specific legislation under the EU Eco-Design Directive, for welding equipment, still in existence, which requires component level identification of any CRMs (see next slide) ▹ The UK Brexit referendum and subsequent Article 50 notification, saw the UK presence and influence in EU gradually decline. A new world order, pandemic, Brexit, challenges, threats and embracing change …
  13. © Assent 2023 / assent.com Introduction: The Global CRM Marketplace (iv) ▸ UK Statutory Instrument: ‘The Ecodesign for Energy-Related Products and Energy Information Regulations’ (2021): ▹ SCHEDULE 1: Ecodesign requirement for welding equipment » Information requirements: • 4.(1) Manufacturers, their authorised representatives or importers of welding equipment must provide the information specified in sub-paragraph (2) for each piece of equipment: • (a) in instruction manuals for installers and end-users; and • (b) for at least 10 years after the first unit of a model is placed on the market, on a website which is accessible to the public without charge. • 4.(2) The information referred to in sub-paragraph 4.(1) is: • (e) a list of critical raw materials present in indicative amounts higher than 1 gram at component level, if any, and an indication of the component(s) in which these critical raw materials are present; UK Product Specific CRM Reporting Requirement UK CRM CURRENT STATE REPORTING – APPLIES ONLY TO WELDING EQUIPMENT
  14. © Assent 2023 / assent.com Introduction: The Global CRM Marketplace (v) ▸ 2019 to 2021: ▹ EU Green Deal (2019) launched as central strategy to enable EU to make the ‘green transition’ between 2020-24. ▹ However, by the end of 2019, the outbreak of the Covid-19 pandemic, resulted in very high infection rates, spreading sharply around the world. ▹ Governments around the world subsequently introduced ‘lockdown’ measures to curb the spread of the virus, shutting down all be key essential services, halting the global flow of goods. ▹ It was during this period, countries begun to realize just how much they depended on products sourced from China. ▹ The longer China imposed its own ‘lockdown’ measures, had sharp ‘knock-on effect’ impacts to other countries, which has attempted to implement their own post Covid-19 recovery measures. A new world order, pandemic, Brexit, challenges, threats and embracing change …
  15. © Assent 2023 / assent.com Introduction: The Global CRM Marketplace (vi) ▸ 2019 to 2021 (cont’d): ▹ EU resilience and recovery activities during 2020 pivoted towards the new ‘green and digital’ transitions. Several new CRM related activities initiated: » EU Industrial Strategy (2020) highlighted key EU sectors highly depended on CRM and other products from China. » EU CRM Resilience Communication (2020) which included the EU CRM List (2020), established ERMA. » EU Action Plan on CRMs (2020) very strong themes which align to those defined in UK CRM strategy. ▹ The UK was slightly hampered awaiting the outcomes of the Brexit negotiations. However, several key studies related to CRMs were launched (see next slide). A new world order, pandemic, Brexit, challenges, threats and embracing change …
  16. © Assent 2023 / assent.com Key Observations: 1. A material is critical if it contains essential properties that cannot be provided by other materials or at risk from supply chain disruption; 2. Global CRM consumption rates attributed to population growth; mass-production; disposable income growth. 3. Globalization of both outsourced manufacturing and marketplaces, increased demand for CRMs. 4. Key UK sectors consuming CRMs: Defence; Energy; Electronics; Healthcare; Transport 5. Lack of accurate data available, due in part to lack of general CRM tracking 6. Multiple methods for assessing material criticality; 7. No UK CRM strategy or UK CRM list. Introduction: UK Key Early Studies Key Recommendations: 1. Implement UK CRM strategy to ensure security of CRM supply; 2. Establish material criticality assessment criteria to support a UK specific perspective; 3. Define, implement and maintain a UK CRM list; 4. Assess domestic CRM sources; 5. Promote efficiency standards; 6. Develop eco-design policies (min life standards, durability, repairs, etc.); 7. Encourage products to be designed with future circularity in mind 8. Utilize GPP rules to aid public sector towards products linked to steps 4-6; 9. Assess use of product labelling to inform on CRMs contained in products; 10. Ensure greater visibility of, and data sharing of UK CRMs across UK supply chain (data elements, collection and reporting obligations); 11. Promote greater UK CRM recycling activities; 12. Strengthen UK trading relationships 13. Assess key emerging low-carbon industries; 14. Promote greater UK CRM reprocessing activities; 2021 2020 UK criticality assessment of technology critical minerals and metals [BEIS & BGS] Review of the Future Resource Risk Faced by the UK Economy [DEFRA & Eunomia] 2019 Access to Critical Materials [UK POST] Regulating Product Sustainabiility [UK POST] COVID-19 PANDEMIC Ten Point Plan for a Green Industriial Revolution [DEFRA] Future-proofing Supply of Critical Minerals for Net-Zero [UNECE] Net Zero Strategy: Build Back Greener [BEIS] The Role of Critical Mineral in Clean Energy Transitions [IEA] Global Britain in a Competitive Age: the Integrated Review of Security, Defence, Development and Foreign Policy [Cabinet Office]
  17. © Assent 2023 / assent.com 17 2 UK CRM Strategy (2022)
  18. © Assent 2023 / assent.com UK CRM Strategy: ACE Objectives Accelerate the UK’s Domestic Capabilities: 1. Maximize domestic production; 2. Rebuild skills; 3. Carry out R&D; 4. Increase circularity (recovery, reuse, recycling and resource efficiency). Collaborate with International Partners: 5. Diversify sources of supply; 6. Support UK companies towards diversified transparent and responsible supply chains) 7. Develop international diplomatic, trading and development relationships. Enhance International Markets: 8. Promote Environmental, Social and corporate Governance (ESG) to support a level playing field for responsible businesses; 9. Improve data, traceability on CRMs via functioning transparent markets; 10. Promote London as the world capital for responsible finance for CRMs. Several flow down actions, initiatives, plans of which some were clear, whilst the majority appeared as a collection of vague statements
  19. © Assent 2023 / assent.com UK CRM Strategy: Key Actors and Activities CMIC: • Core Objectives: o Evaluate criticality of CRMs annually; o Provide better intelligence on CRMs: § As existing data is based on a mixture of legacy data from EU and USGS. § Provide data and analysis on: § (i) sources of CRM supply; § (ii) demand for CRMs, and; § (iii) market dynamics for CRMs covering ESG issues, geopolitical events; o Undertake CRM assessments based on: § (i) CRM candidates approved via CMEC; (ii) using UK Criticality Assessments approved by BEIS, developed in conjunction with CMEC & BGS. BEIS: • Leads policy for UK CRM Strategy; • Established CMIC in July 2022; • Maintains oversight of CMIC; • Review UK Criticality Assessment methods. BGS: • Delivers CMIC; • Works with partners from industry and academia, in the UK and abroad; • Input into UK Criticality Assessment methods. CMEC: • Provides UK government with independent expert guidance on CRMs: o Supported development of UK CRM strategy; o Suggest suitable actions to secure sustainable CRM sources; o Will continue to support UK criticality assessment method; o Will continue to review UK CRM candidates based on economic vulnerability and security of supply; 1. UK Government Accountable Minister UK Minster of State (Minister for Science & Investment Security): • Responsible for BEIS; • Responsible for UK CRMs (would ultimately sign off on any new additions to the UK CRM List). 2. UK Government Responsible Department 3. UK Central Data Intelligence Resource 4. UK Group Managing Central Data Intelligence Resource 5. UK Independent Expert Advisors Responsible to Responsible For Manages Delivery of Responsible to Collaborate Advise
  20. © Assent 2023 / assent.com UK CRM Strategy: UK CRM List 1. Antimony (Sb) 2. Bismuth (Bi) 3. Cobalt (Co) 4. Gallium (Ga) 5. Graphite (C) 6. Indium (In) 7. Lithium (Li) 8. Magnesium (Mg) 9. Niobium (Nb) 10.Palladium (Pd) [PGM] 11.Platinum (Pl) [PGM] UK CRM List Candidates: 1. Iridium (Ir) [PGM] 2. Manganese (Mn) 3. Nickel (Ni) 4. Phosphates (P) 5. Ruthenium (Ru) [PGM] 12.Cerium (Ce) [REE] 13.Dysprosium (Dy) [REE] 14.Erbium (Er) [REE] 15.Europium (Eu) [REE] 16.Gadolinium (Gd) [REE] 17.Holmium (Ho) [REE] 18.Lanthanum (La) [REE] 19.Lutetium (Lu) [REE] 20.Neodymium (Nd) [REE] 21.Praseodymium (Pr) [REE] 22.Samarium (Sm) [REE] 23.Terbium (Tb) [REE] 24.Thulium (Tm) [REE] 25.Ytterbium (Yb) [REE] 26.Yttrium (Y) [REE] 27.Silicon (Si) 28.Tantalum (Ta) 29.Tellurium (Te) 30.Tin (Sn) 31.Tungsten (W) 32.Vanadium (V) UK CRM List 1. UK Government Accountable Minister 2. UK Government Responsible Department Final Approval of Any Updates 3. Central Data Intelligence Resource 4. UK Group Managing Central Data Intelligence Resource 5. UK Independent Expert Advisors Collaborate Provide Update Recommendations Interact With Interact With Interact With
  21. © Assent 2023 / assent.com UK CRM Strategy: Summary (i) ▸ The UK government should be commended for the CRM investment projects shown in the UK CRM strategy. However, there should have been more substance to the general statements shown, for example, investment costs, expected duration and benefits expected to arise from these investments ▸ UK domestic CRM reprocessing & recycling activities are not clearly or concisely articulated, some appear to be previously established investment projects ATF, IETF and UKIB. This makes it hard to determine the true investments allocated as part of the UK CRM strategy itself (existing funding available vs CRM specifically allocated). ▸ UK ESG definitions need to align clearly with the rest of the world, and divergence will make the data hard to read across into other locations, take the example of a large MNC operating in multiple regions.
  22. © Assent 2023 / assent.com UK CRM Strategy: Summary (ii) ▸ UK CRM Strategy promotes a desire to make the UK become leader in CRM recycling and reprocessing, requiring: ▹ A significant amount of investment to be undertaken; ▹ Technological innovations, potentially arising from (i); ▹ UK government needs to work closely with any funded projects, not at arms length, to ensure the investments deliver the expected benefits with a reasonable time period, at the estimated costs. ▸ Very general statements on UK sectoral uses of CRMs, with potential impacts. More depth is needed, identifying key strategic sectors and use of CRMs (aerospace and defence, automotive, electronics, renewable energy and medical sectors).
  23. © Assent 2023 / assent.com UK CRM Strategy: Summary (iii) ▸ When first reviewing the UK CRM list it appears a little strange, not aligning 100% with the US or EU CRM lists. ▸ The assessment process for CRM candidates for inclusion onto the UK CRM list is vague. It is very unclear on the roles of different actors. You must drill down and read several layers of documents to truly understand who does what. ▸ CMEC are responsible for reviewing and assessing new candidate CRMs, does not appear to have held a meeting since 2021? ▸ BGS criticality assessment document from 2021 appears to be current methodology. The assessment logic is slightly strange, focusing more on the CRMs that are deemed to be critical for the UK, potentially ignoring others as being less relevant, which in turn may result in a loss of potential revenue source, if the CRM is dismissed, as it may be critical for other non-UK sectors.
  24. © Assent 2023 / assent.com 24 3 UK Critical Mineral Refresh (2023) • Published on 13th March 2023 • This section explores updates in relation to the original UK CRM Strategy (2022) ACE goals
  25. © Assent 2023 / assent.com UK CRM Refresh: Accelerate the UK’s Domestic Capabilities (ACE Goal 1) Key Areas UK CRM Refresh Comments Maximize domestic production. • July 2022: UK ATF financial support to Pensana to build the first UK REE refinery. • November 2022: UK ATF £600,000 support to Green Lithium to build the first UK large-scale merchant lithium refinery. • Innovate UK CLIMATES: £15 million for REE related projects (covers ALL key areas). • Impossible to identify the actual amount of funding given to Pensana. Rebuild skills. • Vague Reference (1): UK universities offering course in materials science, metallurgy and chemical engineering. • Vague Reference (2): West Midlands regional cluster developing REE recycling expertise. • Vague reference (1): Camborne School of Mines and employers' degree apprenticeship, which is actually being run via Exeter university. • Vague Reference (2): UKRI Previously awarded the University of Birmingham £4.3 million in 2021 to establish a REE recycling plant in the West Midlands. Carry out R&D. • October 2022: Additional £211 million allocated to the Faraday Battery Challenge • £32.5 million funding for low carbon alternatives for red diesel for construction, mining and quarrying (phase 2). • Red diesel replacement funding is for demonstration projects, with budgets of min £1 million up to £12 million, however applicants will need to NEED financially match the funding amount received, which severely limits applications. Assumed logic, cleaner fuel = leads to fewer emissions. Increase circularity (recovery, reuse, recycling and resource efficiency) • UKRI £30 million funding for 4-year NICER programme launched in 2021. • NICER programme investment and support for UK Met4Tech • Vague Reference (3): February 2023 British Industry Supercharger initiative project launch, lacks data on actions for circular measures for the energy sector. Related CRMs from UK CRM List (2022) Cerium (Ce) [REE] Dysprosium (Dy) [REE] Erbium (Er) [REE] Europium (Eu) [REE] Gadolinium (Gd) [REE] Holmium (Ho) [REE] Related CRMs from UK CRM List (2022) Lanthanum (La) [REE] Lithium (Li) Lutetium (Lu) [REE] Neodymium (Nd) [REE] Praseodymium (Pr) [REE] Samarium (Sm) [REE] Related CRMs from UK CRM List (2022) Terbium (Tb) [REE] Thulium (Tm) [REE] Tin (Sn) Ytterbium (Yb) [REE] Yttrium (Y) [REE] UK CRM Strategy (2022) UK CRM Refresh (2023) UK CRM List (2022)
  26. © Assent 2023 / assent.com UK CRM Refresh: Collaborate with International Partners (ACE Goal 2): Trading Agreements UK CRM Strategy (2022) UK CRM Refresh (2023) UK CRM List (2022) Partner Name Agreement Name Agreement Type Agreement Date Partner CRMs Partner Unexplored Reserves Comments Australia Supply Chain Resilience Initiative Shared R&D investments projects September 2022 Investigating public sector approaches to managing critical supply chains. Several rounds of funded projects. Outputs may then feed into private sector approaches. Canada Critical Mineral Statement of Intent CRM Specific March 2023 iron and steel, aluminum, copper, gold, tellurium, niobium, uranium, and cobalt Lithium. Agreement to work together on research. Republic of Korea Collaborative R&D. Shared R&D investments projects February 2022 Multi-phase project between Innovate UK, KIAT and KETEP. References advanced manufacturing and materials. Saudi Arabia Co-operat6ion on Critical Minerals CRM Specific January 2023 Initial agreement announcement only South Africa Partnership Agreement on Minerals for Future Clean Energy Technologies CRM Specific November 2022 platinum, palladium, iridium, vanadium and manganese. iron ore, platinum, manganese, chromium, copper, uranium, silver, beryllium, and titanium Agreement to work together on research. Related CRMs from UK CRM List (2022) Cobalt (Co) Iridium (Ir) [PGM] CRM Candidate Lithium (Li) Manganese (Mn) Niobium (Nb) Palladium (Pd) [PGM] Related CRMs from UK CRM List (2022) Platinum (Pl) [PGM] Tellurium (Te) Vanadium (V)
  27. © Assent 2023 / assent.com UK CRM Refresh: Collaborate with International Partners (ACE Goal 2): Multilateral Forums UK CRM Strategy (2022) UK CRM Refresh (2023) UK CRM List (2022) Forum / Name Formatio n Date Forum Description Forum Objectives Forum Members IEA Novemb er 1974 Multilateral initiative on energy. (i) collaborate with governments, industry and international organizations, (ii) (ii) promote secure, affordable and sustainable energy • Energy sector bodies. • National and international government bodies. • Academia and NGOs. Minerals Security Partnership (US-convened) June 2022 Multilateral initiative to develop responsible CRM supply chains. (i) MSP members consist of large CRM consuming countries; (ii) Established to develop mutually beneficial partnership agreements with mineral-rich countries, (iii) Develop a common approach on ESG standards for use across the • MSP Members: Australia, Canada, European Commission, Finland, France, Germany, Japan, the Republic of Korea, UK, US, • MSP Partnership Agreements with Mineral-Rich Countries (on-going): Argentina, Brazil, the Democratic Republic of the Congo, Mongolia, Mozambique, Namibia, Tanzania, Zambia Sustainable Critical Mineral Alliance Decemb er 2022 Established during COP 15, to promote environmentally sustainable, socially inclusive and responsible practices across the global mining sector. (i) Align with the G7 2030 Nature Compact (2021) aim to reverse biodiversity loss by 2030, (ii) Voluntarily develop practices that promote nature first approach, prevent biodiversity loss, support local and indigenous communities, fight climate change, restoration of ecosystem, and progress towards a circular economy • Australia, Canada, France, Germany, Japan, UK, US
  28. © Assent 2023 / assent.com UK CRM Refresh: Collaborate with International Partners (ACE Goal 2): UK Funded Projects UK CRM Strategy (2022) UK CRM Refresh (2023) UK CRM List (2022) Project Name Project Description UK CRM Refresh Related Comments UK CEIF • Description: Clean energy R& for developing countries • Date(s): (i) April 2019 to end December 2023 (original) • Key Climate Objective(s): Climate Mitigation. • Managed by: UK BEIS • Funding: (i) Original budget allocation of £44 million, (ii) Spend to data (Feb 2023) spend £12.6 million . November 2022: COP 27 support package included an announcement of an additional £65.5 million, UK ICF • Description: Clean energy R& for developing countries • Date(s): Launched 20 • Key Climate Objective(s): Climate Mitigation. & Climate Adaption • Managed by: UK BEIS, UK Defra and UK FCDO. • Funding: (i) £9.8 billion spent between 2011/12 to 2020/21, (ii) £11.6 billion committed between 2021/22 to 2025/26. The Ayrton Fund • Description: Clean energy trasn the clean energy transition in developing countries, by creating and demonstrating innovative clean energy technologies and business model • Date(s): Launched 20 • Key Climate Objective(s): Climate Mitigation. & Climate Adaption • Managed by: UK BEIS, UK Defra and UK FCDO. • Funding: (i) £1 billion • Originally promoted as being funding made available to British scientists and innovators to tackle climate change in developing counties • Critical minerals is mentioned amongst lots of other initiatives so UK CRM Refresh (2023): Makes several references to international UK funded projects. It is a little confusing to grasp the correlation of these funded projects and CRMs: • Climate Mitigation: (i) Reduce the causes of climate change (GHGs). (ii) Changing societal behaviours, such as reduce the amounts of energy consumed, using renewable energy sources, using sustainable transport, purchase products with recycled materials, etc., (iii) Products should be designed to much more energy efficient, where feasible existing products could be updated to become more energy efficient. Making products more sustainable with circularity in mind from outset (durable, energy efficient, repairable, reusable, and recyclable) = Reducing the rate of natural resource depletion (extraction, processing and associated emissions), as a result of products embracing circularity = Reducing climate change impacts • Climate Adaption: Taking action to deal with the current and predicted effects of climate change.
  29. © Assent 2023 / assent.com UK CRM Refresh: Enhancing International Markets (ACE Goal 3) UK CRM Strategy (2022) UK CRM Refresh (2023) UK CRM List (2022) UK Circular Economy Framework (Development Phase) • Led by UK ONS, UK ONS-IDS, UK HMRC • Objective to create a pioneering data pooling network, to support supply-chain traceability that securely brings together public and private data from across industry, government and academia. UK Supply Chain Resilience Framework (Published) • UK DIT Guidance (November 2022) MSP SCMA
  30. © Assent 2023 / assent.com UK CRM Refresh: Emerging Landscape of Actors & Roles UK CRM Strategy (2022) UK CRM Refresh (2023) UK CRM List (2022) CMIC Core Objectives: • Evaluate criticality of CRMs annually. • Provide better intelligence on CRMs: o As existing data is based on a mixture of legacy data from EU and USGS. • Provide data and analysis on: o (i) sources of CRM supply. o (ii) demand for CRMs, and. o (iii) market dynamics for CRMs covering ESG issues, geopolitical events; • Undertake CRM assessments based on: o (i) CRM candidates approved via CMEC. o (ii) using UK Criticality Assessments approved by BEIS, developed in conjunction with CMEC & BGS BEIS: • Leads policy for UK CRM Strategy. • Established CMIC in July 2022. • Maintains oversight of CMIC. • Review UK Criticality Assessment methods. BGS: • Delivers CMIC; • Works with partners from industry and academia, in the UK and abroad; • Input into UK Criticality Assessment methods. 1. UK Government Accountable Minister UK Minster of State (Minister for Science & Investment Security): • Responsible for BEIS; • Responsible for UK CRMs (would ultimately sign off on any new additions to the UK CRM List). 2. UK Government Responsible Department 3. UK Central Data Intelligence Resource 4. UK Group Managing Central Data Intelligence Resource 5. UK Independent Expert Advisors Responsible to Responsible For Manages Delivery of Responsible to Collaborate Advise UK CRM List Candidates: 1. Iridium (Ir) [PGM] 2. Manganese (Mn) 3. Nickel (Ni) 4. Phosphates (P) 5. Ruthenium (Ru) [PGM] UK DIT Supply Chain Resilience Framework (See Next Slide) 6. UK Task & Finish Group on Critical Minerals Resilience for UK Industry Critical Minerals Framework (TBD) DIRECTION OF FUTURE UK GOVERNMENT CRM RELATED ACTIONS • Engage with industrial sectors. Understand industrial sector CRM supply chain dependencies and vulnerabilities. • Identify key CRM data sources. • Identify data elements (attributes, data fields) on CRMs that need to be captured and reported across ALL industrial sectors. • Continue engagement with industrial sectors working with test data and modelling different scenarios. • Establish concise risk reporting dashboards which can accurately: (i) flag risks based on appropriate indicators, (ii) suggest CRM risk mitigation actions (potentially recording in ML for use in AI) Responsible For Informs Above Informs Above Informs Above Creates
  31. © Assent 2023 / assent.com UK CRM Refresh: UK DIT Supply Chains Resilience Framework UK CRM Strategy (2022) UK CRM Refresh (2023) UK CRM List (2022) SOURCE: UK DIT (November 2022)
  32. © Assent 2023 / assent.com 32 4 Conclusions
  33. © Assent 2023 / assent.com Conclusions: UK CRM Strategy, UK CRM Refresh, and CRM Value Chains Activities to uncover potential new CRM deposits, for future extraction. CRM Mining and extraction activities. Extracted CRMs (minerals, ores, concentrates). Processed into raw materials (metals, oxides, alloys, powders). Raw materials containing CRMs. Formed into semi-finished or finished products. Products are then sold to either: (i) end consumers, or; (ii) other actors in the value chain within own products End consumer use. May entail sending products back to the product manufacturer for maintenance and report activities Products enter EOL state. EOL products then collected / transmitted into waste streams. Waste streams operators may then undertake Repair, Refurbishment, Repurposing or Recycling activities. Recycling activities result in secondary raw material creation. Achievements: ü Trading Agreements (Australia, Canada, South Africa). ü Multilateral Forums (IEA, MSP, SCMA). ü UK ATF Funded refinery projects (Lithium, REEs). ü UK International Funded Projects (Ayrton Fund, CIEF, ICF) Work to be done: ü Key Action: Define 2 key lists: (i) key UK strategic / critical technologies, (ii) CRMs consumed by (i). This needs to be a priority and not further vague references, both the US and EU did this before developing their CRM policies. ü Identify accurate CRM flows into the UK (accurate numbers not estimates or trade data that ignores CRMs in products). ü Fully disclosure of all funding given to industry, expected benefits, duration and progress made (Pensana project) ü UK lacks the concept of developing national CRM stockpiles, which US already has, and EU is progressing towards (at each member state level and sharing with industry EU CRMA. ü Understand International approaches for CRM reporting, align as closely as possible, avoid placing additional complex burdens, but do keep abreast of emerging CRM reporting needs. Achievements: ü UKRI investment projects (Met4Tech, REE recycling). Work to be done: ü Reporting system for waste operators to identify products with CRMs or hazardous chemicals. ü Product labelling / identification of CRMs (like REEs in magnets under EU CRMA). ü Waste separation of products containing CRMs. ü Specialist waste streams to undertake CRM recycling activities. Achievements: ü UK CRM List established. ü UK CMIC has produced initial CRM reports. ü Met4Tech and UK government functions developing CRM data analytics. ü Welding equipment is the only product with a CRM reporting requirement. Work to be done: ü UK should not rely solely on CRM data analytic systems that are based on generalizations (government / academia assumed CRM uses, or based on inaccurate legacy data) ü UK needs a clear mechanism defined for reporting CRMs in products (EU has Ecodesign directive, EU ESPR à EU DPP and EU CRMA defining CRM reporting at product specific levels). ü UK CRM traceability strategy needs to be clearly defined. Outlining the roles of Met4Tech, UK government departments and new UK Task & Finish group
  34. © Assent 2023 / assent.com 34 5 Questions?
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