Critical Raw Materials Play a Central Role in Modern Technologies
Critical raw materials are essential for producing batteries, electronic equipment, and renewable energy systems. Cobalt, manganese, graphite, and rare earth elements are among the most important resources, as they are crucial for the digital and energy transitions.
Increase in Export Restrictions
The OECD has observed an increase in export restrictions on these critical raw materials over the past fifteen years. In 2024, the number of restrictions reached a high level, with a slight slowdown in growth but an increase in geographical spread, as several African and Asian countries adopted these measures.
Impact on Exports
The exports of cobalt and manganese are heavily affected, with around 70% of global volumes subject to at least one restriction between 2022 and 2024. The global production of these materials remains highly concentrated, with three countries dominating the production of cobalt, lithium, and nickel, controlling over two-thirds of global production. Rare earth elements are also dependent on a few producers.
Types of Restrictions
Countries are using various types of restrictions, including export bans and quotas, which are becoming more frequent in 2024. Governments justify these decisions by citing several objectives, including increasing public revenue and protecting their natural resources.
Control of Metal Waste and Scrap
Metal waste and scrap are also being controlled more tightly to support recycling and the circular economy.
Risks to Global Supply Chains
These developments create risks for global supply chains, making markets more fragile and prices potentially higher. The OECD report highlights a global challenge, as access to critical raw materials becomes strategic. Countries must cooperate to secure supplies and stabilize markets.
Key Findings
- Critical raw materials are essential for modern technologies
- Export restrictions are increasing, affecting global supply chains
- Production is highly concentrated, with a few countries dominating the market
- Countries are using various types of restrictions to control exports
- Metal waste and scrap are being controlled more tightly to support recycling and the circular economy
- Global cooperation is necessary to secure supplies and stabilize markets.
