Critical Raw Materials and the Renewable Energy Transition: the Role of Domestic Supply
Abstract
Emerging technology innovation and industrial development are increasingly dependent on the use of advanced and specialized materials. This paper introduces the concept of material-based technological regime and underscores the critical importance of supply chain stability for key materials in bolstering technology and industry development. We focus on the case of renewable energy (RE) industry which depends on selected critical raw materials (CRMs) – including rare metals and rare earth elements – as essential components and the material basis for RE technological innovation. A growing emphasis in both academic and policy circles is directed to de-risking supply chains through diversification of sources and production reshoring. In this study, we investigate the relevance of domestic CRM production as a strategic tool to hedge against global supply shocks, providing competitive advantages for local renewable energy development and innovation. Empirically, we explore this issue by focusing on two core RE sectors: Wind and Solar. Analysing data from a panel of 128 countries spanning from 2007 to 2016, we examine the impact of domestic CRM supply capabilities on the competitiveness of the RE sectors and technological innovation. Our findings show that a stable CRM supply through domestic production significantly supports downstream RE product exports and patent output, shielding local RE development from global material supply shocks.
Speaker
Simona Iammarino is Professor of Applied Economics at the Department of Economics & Business of the University of Cagliari, and affiliated to the CRENoS; Visiting Professor at the Department of Geography & Environment of the London School of Economics (LSE), and member of the Board of the LSE-Cañada Blanch Centre; affiliate faculty member at the Gran Sasso Science Institute (GSSI) L’Aquila, Italy. She was Professor of Economic Geography at the LSE (2009-2022), where she acted as Head of Department (2014-2017) and academic member of the LSE Council (2016-2020).
Simona’s main research interests lie in the following areas: Multinational corporations, globalisation and local economic development; Economic geography of innovation and technological change; Regional and local economic development and policy. She has published more than 70 articles in major peer-reviewed journals, two co-authored books, around 30 book chapters, and numerous working papers, policy reports and other publications.
She is co-editor of the Journal of Economic Geography, member of the Regional Studies Association (RSA) Executive Group and Board and Chair of the RSA Journal Committee. She has a long-term experience in externally funded international research projects, and in consultancy projects for various international organisations (e.g. EU Commission, OECD, United Nations, ADB, etc.) and numerous government agencies.
In 2024 Simona was awarded the “ERSA European Prize in Regional Science”, arguably the highest prize in regional sciences, and the “Giacomo Becattini” Prize, Italian Society of Economics and Industrial Policy (SIEPI).