In order to avert the intensifying impacts of the climate crisis, the need to transition from fossil fuels to renewable energy sources has even become more urgent on a global level. This transitioned energy system, however, requires more minerals, which eventually increases demand to extract these raw materials. Many of these minerals key to global transition are found in the Global South including Southeast Asian countries.

Southeast Asia boasts large reserves of several key minerals, including nickel, tin, rare-earth elements, copper, and others. While this presents opportunities for the region in terms of economic growth, this is also marred with massive social and environmental costs. Ironically, most Southeast Asian countries historically have the least contribution to the global emissions that brought us to where we are now. Yet they are under pressure to produce the so-called “critical” or “transition” minerals to address the global problem. In addition to this, the Southeast Asian region deals with economic vulnerability and fragile environment exacerbated by the climate emergency.

This web dossier provides Southeast Asian perspectives through articles, analysis, infographics, video documentaries and other materials by looking into different facets of critical minerals in the region. The discussion ranges from experiences and struggles of communities affected by mining of critical minerals to policy discourse including accountability, supply chain due diligence, and financing.

This dossier will be updated with new contributions from time to time.

Note: In order to accommodate the on-going debate on criticality, we allow the use of the terms “transition minerals” and “critical minerals” interchangeably. Most of our partners in Southeast Asia however prefer the term “transition minerals” to the term “critical minerals” which is perceived as driven by the Global North.  

Southeast Asia's Growing Supply of Critical Minerals

Southeast Asia is becoming a key player in the global minerals sector with its resources extraction supplying essential materials such as nickel, cobalt, rare earths, tin, graphite, and more for clean energy technologies.

Nickel mining in Southeast Asia has surged in recent years, attracting significant attention for its impact on environment and local communities, million hectare of deforestation and a rapid scale of industrial expansion. Indonesia’s nickel sector, for instance, experienced a 300% surge in investment from 2016 to 2023, amounting to $6.6 billion, following the Paris Agreement (compared to the 2009-2015 period). In terms of production, Indonesia and the Philippines now account for 63% of the world’s nickel production which equivalent to 2.2 million metric tons, with Indonesia alone supplying 51.8% of global output in 2023.

In the cobalt sector, despite the Democratic Republic of Congo’s dominance, with 73% global supply in 2023, Southeast Asian countries such as Indonesia rank second with a 7% supply, while the Philippines rank seventh globally. Myanmar is also becoming a key player in the rare earths market, coming in third in terms of world supply (10%), behind China and the US, which lead with 68% and 12% respectively.

Southeast Asia is also a heavyweight in the tin sector, supplying a total of 42.8% of global output. China remains the largest tin producing country, followed by Indonesia and Myanmar.

Southeast Asia holds vast reserves of several key minerals

Southeast Asia’s vast reserves are poised to meet the increasing demand driven by the global energy transition effort to tackle climate change. Indonesia, a powerhouse in global nickel industry, holds the world’s second-largest reserves. 

Myanmar, despite ongoing political turmoil, ranks fourth in global rare earth reserves, while Vietnam, remains an untapped giant, with an estimated 20% of rare earth potential, holding the second largest global reserves after China. Indonesia and Myanmar are also among the world’s top tin reserve holders. 

These critical minerals spread across the region could still be a double-edged sword; either as a potential source of prosperity or a potential risk for ground conflict.

Southeast Asia's Critical Minerals at the Crossroads

With the rising demand for critical minerals needed for clean energy technologies amid the push for net-zero emissions, Southeast Asia’s critical minerals resources will become more than economic assets – it will be an increasingly important flashpoint in the shifting geopolitical dynamics between the Global North and Global South.

According to International Energy Agency (IEA), global demand for critical minerals to the clean energy shift is set to surge, with an average increase roughly double by 2050.

Southeast Asia is at a crucial crossroads. The region’s approach to critical mineral resource extraction and governance will shape the future of global energy transition. Southeast Asia has the potential to show that the shift towards renewables can lead to genuinely transformative changes that are more sustainable and equitable. 

Otherwise, it could fall into the trap of perpetuating the same path as the fossil fuel-led development model that has led to social, economic, and environmental harm that communities have long endured.