The over-reliance on concentrated supply chains for key minerals is a major issue in the current global energy transition, according to Oryx Global Partners’ most recent paper, The Need for key Minerals Supply Chain Diversification. 90% of rare earths, more than 50% of nickel, lithium, and cobalt, and 95% of battery-grade graphite are processed and refined in China, which is expected to achieve this status by 2030.
In the meantime, the DRC supplies 66% of the world’s cobalt, and Indonesia currently supplies 62% of its nickel. These concentrations make people more susceptible to trade disputes, natural calamities, and geopolitical tensions.
The dangers of this imbalance are emphasised throughout the paper. Price increases of up to 200% have been caused by China’s export restrictions, such as its recent antimony restrictions, demonstrating how minerals may be used as weapons. In response, Western countries are implementing measures like the EU Critical Raw Materials Act and the U.S. Inflation Reduction Act with the goal of reorganising supply chains and lowering reliance.
