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According to the report of Nihon Keizai Shimbun on October 12, Japan, Britain, South Korea and other five countries have built a new mechanism to assist emerging countries in order to strengthen the renewable energy supply chain. This mechanism will establish a fund at the World Bank, funded by participating countries, to assist emerging countries in completing all aspects from resource extraction to product production domestically, mainly involving the electric vehicle and solar panel industries.
The new mechanism has been named "aimed at establishing a strong and inclusive supply chain partnership", and participating countries such as Japan and the World Bank held a launch ceremony in the Moroccan city of Marrakesh on the 11th.
In addition to Japan, Britain, and South Korea, Canada and Italy have also announced their accession. Japan will contribute 25 million US dollars, and the total investment scale of the five countries will exceed 40 million US dollars. The main recipients of aid will be countries from the global south, with Chile and India as candidate recipients attending the ceremony on that day.
The Japanese government and the World Bank, in the spirit of creating an "open mechanism", call on relevant countries to participate widely. Japanese Finance Minister Junichi Suzuki said at a meeting on the 11th, "We will work with different stakeholders to steadily advance this mechanism
The new mechanism was agreed upon during the meeting of finance ministers and central bank governors of the Group of Seven in May this year, aiming to eliminate the dependence on specific countries in the production system and achieve stable supply of key materials from the perspective of maintaining economic security.
All along, emerging countries have mainly existed in the resource extraction process, and the new mechanism will provide support to emerging countries from the technical and financial aspects, so that they can independently undertake high-yield processes from processing, refining to assembly.
The global dependence on China in the processing of rare earth, lithium and other minerals is a background factor that has facilitated the establishment of new mechanisms. China's implementation of export controls or the risk of supply interruption in the event of natural disasters are also considered factors. In addition, countries also rely heavily on China in areas such as solar panels and electric vehicles. According to the data of Japan's Ministry of Finance, although China's lithium mining accounts for only 10% of the world's total mining output, China's share in processing and refining reaches 55%, and in battery manufacturing reaches 75%.
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