ASEAN-IGF Minerals Cooperation: Scoping study on critical minerals supply chains in ASEAN

The report assesses the current state of critical mineral supply chains across ASEAN Member States, highlighting the region's role as a major producer of nickel, tin, and rare earths. It examines the impact of the energy transition and digital revolution, analyzing value chain stages from exploration to recycling. The study emphasizes the potential for regional integration, particularly in electric vehicle (EV) and battery manufacturing, while cautioning on the need for robust environmental, social, and governance (ESG) standards to attract investment and ensure sustainable development.

• ASEAN countries hold significant global production shares for several critical minerals, cumulatively producing approximately 47% of global nickel and 35% of global tin as of 2020.
• Mineral exploration budgets in the ASEAN region have declined over the last decade, with copper and nickel exploration spending dropping by over 61% and 65% respectively.
• Indonesia has aggressively pursued a strategy of vertical integration by implementing raw ore export bans, particularly for nickel, to force the localization of refining and battery manufacturing.
• The region is rapidly developing an electric vehicle (EV) ecosystem, with Thailand as a major automotive hub and Indonesia investing in an integrated ore-to-EV value chain, including a USD 6 billion battery project with CATL.
• ASEAN lags behind other regions in mineral recycling; for example, only 11.7% of e-waste in Asia is recycled compared to 42.5% in Europe, and secondary production of aluminum and copper in ASEAN is significantly below global rates.
• Environmental, Social, and Governance (ESG) standards are critical for attracting foreign investment, as low ESG metrics and perceived risks can limit investment and lead to the loss of a social licence to operate.
• The region's critical mineral sector is heavily influenced by global geopolitics, particularly China's dominance in refining and manufacturing, and the industrial policies of the US and EU aimed at securing their own supply chains.
• Singapore serves as a vital regional hub for R&D, innovation, and global finance, despite having no domestic mineral reserves.

APA

International Institute for Sustainable Development (2023). ASEAN-IGF Minerals Cooperation: Scoping study on critical minerals supply chains in ASEAN. https://www.iisd.org/system/files/2023-05/scoping-study-critical-minerals-asean.pdf

Chicago

International Institute for Sustainable Development. ASEAN-IGF Minerals Cooperation: Scoping study on critical minerals supply chains in ASEAN. 2023. https://www.iisd.org/system/files/2023-05/scoping-study-critical-minerals-asean.pdf.

Wikipedia

{{cite report |author=International Institute for Sustainable Development |title=ASEAN-IGF Minerals Cooperation: Scoping study on critical minerals supply chains in ASEAN |date=May 2023 |url=https://www.iisd.org/system/files/2023-05/scoping-study-critical-minerals-asean.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{internationalinstituteforsustainabledevelopment2023aseanigf, author = {{International Institute for Sustainable Development}}, title = {{ASEAN-IGF Minerals Cooperation: Scoping study on critical minerals supply chains in ASEAN}}, institution = {International Institute for Sustainable Development}, year = {2023}, month = may, url = {https://www.iisd.org/system/files/2023-05/scoping-study-critical-minerals-asean.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }