The governance of the value chain of rare earth elements (REEs) for sustainable development

Abstract

This study addresses a research gap in the governance of the value chain of critical minerals governance of the chain that produces high-tech renewable energy equipment to achieve sustainable clean energy and a net-zero economy. This study aimed to explore the governance structure(s) of the value chain of rare earth elements as the key renewable energy mineral product to understand the role of different actors in exploration, mining, processing, fabrication and recycling. Using the documentary research method and key informants, we applied a political economy conceptual lens to the global value chain (GVC) framework to examine the governance of rare earth elements (REEs). This study concludes that the governance structure for South African REEs value chains is the Market type global value chain governance, which exposes the market to the dominance of lead buyers, consequently creating governance gaps in the value chain. In light of these results, we recommend that the government mediate by developing a policy to integrate renewable energy mineral exploration and extraction to provide a framework to regulate relationships of various actors in the value chain to mitigate the impact socioeconomic and environmental impact.