Critical mineral supply chains are complex, and building more diverse and resilient supply chains will require significant investments of time, expertise, and resources.
In the last decade and a half, there has been a five-fold increase in export controls on critical minerals. Other countries have imposed their own restrictions.
In the past, China has imposed restrictions on exports of select critical minerals to several countries, including the United States, Japan, and Sweden.
Geopolitical competition and geographic concentration have increased concerns in many countries about critical mineral supply chains. Seventy-five percent of all batteries and a majority of electric vehicles are made in China. China accounts for 85-90% of global rare earth element mine-to-metal refining and refines 68% of the world’s cobalt, 65% of nickel, and 60% of lithium of the grade needed for electric vehicle batteries. China has a strong position in critical mineral mining and a dominant position in processing and manufacturing. Critical mineral supply chains will receive particular attention due to their growing importance for the green-energy transition, defense systems, and other high-tech applications, as well as their vulnerability to supply shocks. We expect geopolitical competition to increase countries' and companies’ focus on building more resilient and diversified supply chains. Wilson Shirley and Klara Svensson are contributors. Jared Cohen is president of Global Affairs and co-head of the Office of Applied Innovation at Goldman Sachs.
0 kommentar(er)
